GST'ing online purchases discussion

[joeymelb]

Still shows we are paying an awful lot for books in AU - I've bought a load of books via Amazon market (new & used) and picked up several books I could only dream of owning.

What is amazing is that most of publications has RRPs in USD, CAD, AUD, NZD or various other currencies printed at the back (or in front) of them. Those retailers must be thinking that Aussies shoppers are blind or incompetent with maths (unfortunately some actually are)!! I am going to Tokyo for holiday short and was checking out Loney Planet guide. RRP USD$12.99 and Borders wants AUD$29.95 for it. Hmm... with AUD on parity with USD... I think I can workout what I can buy for via US seller....

Bottom lines is that shoppers can read and do maths, USD$ EUR€ or other fancy symbols in front numeric numbers don't scare us any more. Plus thanks for pointing out where we can get them MUCH CHEAPER by printing the price on the cover (or back).

Lastly, shoppers have (and most Frequent Flyers too) royalties to certain brands/shops which provide exceptional service and/or product. For example, Apple - we all know about their price gouging Aussies like mad but we still have their iSTUFF. For some Melbournians, they will only fly Qantas to BKK via SYD because they absolutely LOVE the easy trouble free connections in SYD. (or do they just want the points!?) For me, I am happily to pay over $5k for J return on SQ for MEL-SIN knowing full well that EK can save me a bit with only $3.6K. My point here is, retailers need to set themselves apart by offering the right level of service, give us the product we want and get our $$$.

As far as I can see, HN, Myers are not different to Qantas or Virgin Australia competing on a busy International Route with small online retailers like SQ, EK, MH...

 

[cove]

Well Gerry Harvey has been reading what the general public think and is trying to back off fast.SMH says he has been labelled the 4 letter c word after the word rich.
He has damaged his brand all by himself by not appreciating how few breaks the general public get in buying stuff.

 

[Mal]

Well Gerry Harvey has been reading what the general public think and is trying to back off fast.

Yet even though he's backing off - he is quoted as saying :

Mr Harvey said the gripe of the retailing coalition was not about ''online retail versus bricks and mortar'' but rather about closing a tax loophole that did not support Australian jobs or the economy.

''What we are talking about is someone buying a guitar in New York, for instance, and having it sent over here 30 per cent cheaper. It is giving that overseas retailer the advantage.''

Another "Own Goal!". Gerry just pointed out (yet again) that people should be buying guitars from New York as they're 30% cheaper than stores here....

The amount of brand damage he has done to the "Harvey Norman" brand in just a week is amazing. Ditto for the other companies involved. And one of the funniest things I find about this self-centred group of whiners, is that Westfield is part of it. Hmm. They can't have their exorbitant rents being reduced by those nasty, nasty imports!

 

[ozavanti]

Your spot on Mal.... I also love how Gerry puts himself out as being a leader in the adoption of technology:

"Mr Harvey said the launch of his own online store in the 1990s had been another example of bad timing. ''When I opened my site, I was doing $30,000 a week turnover, so I closed it and I opened it up again … I got the same turnover so I closed it again. Now I am opening another one as we speak because in this business it is as much about timing as anything else.'' he could only get his turnover up to $30,000."

Lets sidesteps the real reason Gerry. Your online store(s) didn't succeeded because they had very little product and were more a place-card for 'come shop in our stores', as i have franchisees to keep happy rather than a true online offering.

Overall I'm find the red herring amusing in that HN et al are now at the mercy of the style of retailers they themselves put out of business with their shop big concept. The only difference is that the retailers aren't based in the main streets anymore, rather they are in business parks with a few staff picking stock.

The wheel continues to turn and the old retail business models are breaking.

As for uncle Gerry - all i can say is... if you lead by talking out of your a*se then you shouldn't be surprised when you get kicked in it.

 

[Alanslegal]

Shops fight against online trend | Adelaide Now

The Sunday Mail scoured Rundle Mall and online shops to do price comparisons on some popular items.

FRAGRANCE: Gucci Guilty 50ml
Australian store - $114
StrawberryNet.com - $72.50, free shipping

BOOK: Trading Up by Candace Bushnell
Australian store -$27.99
BookDepository.com - $10.06, free shipping

BOOK: Wall and Piece by Banksy
Australian store - $39.95
BookDepository.com - $24.05, free shipping

VIDEO GAME: Call Of Duty Black Ops for PS3
Australian store - $119.95
Amazon.com - $38.60, plus $4.99 shipping

CAMERA: Panasonic Lumix DMC-TZ10-K
Australian store - $465.80
Amazon.com - $247.35, plus $4.99 shipping

CAMERA: Canon EOS 1000D
Australian store -$650
Amazon.com -$491.20, pluc $9.83 shipping

JEANS: Levis 511 Rigid
Australian store - $149
Urban Outfitters - $38, plus $14 shipping

BEAUTY: SK-II Whitening Source Clear Lotion
Australian store - $100
StrawberryNet.com - $68.30, free shipping

SPORTING EQUIPMENT: Vittoria Rubino Pro Slick Tyre
Australian store - $79.95
Wiggle.co.uk - $24.65, plus $12.87 shipping

FOOTWEAR: Nike Zoom Kobe V
Australian store - $239.95
PickYourShoes.com - $127.97, plus $44.30 shipping

 

[oz_mark]

Well Gerry Harvey has been reading what the general public think and is trying to back off fast.SMH says he has been labelled the 4 letter c word after the word rich.
He has damaged his brand all by himself by not appreciating how few breaks the general public get in buying stuff.

I wonder if the backdown comes from the HN board having a word with him?

 

[medhead]

Yet even though he's backing off - he is quoted as saying :

Mr Harvey said the gripe of the retailing coalition was not about ''online retail versus bricks and mortar'' but rather about closing a tax loophole that did not support Australian jobs or the economy.

''What we are talking about is someone buying a guitar in New York, for instance, and having it sent over here 30 per cent cheaper. It is giving that overseas retailer the advantage.''

Another "Own Goal!". Gerry just pointed out (yet again) that people should be buying guitars from New York as they're 30% cheaper than stores here....

So basically he is saying that Australian's are not allowed to have a GST free allowance when entering the country. Because there is no other tax loophole, as already mentioned there are provisions against importers splitting up shipments in to sub-$1000 lots. There are also provisions against stating an incorrect value. Hence the only potential loophole is that imports <$1000 are exempt from taxation.

As for the guitar example, if you add in the GST, then the guitar is still 23% cheaper (70% of the Australian cost, GST is 7% of the Australian cost). How exactly is that 23% due to a tax loophole?

What a goose!

 

[StevePER]

Another example - shopping for tennis shoes last night, only one of the three shops I went to had New Balance (the only tennis shoes that fit my wide feet) and they were $150. And they said they were unlikely to be much cheaper anywhere because they're a new style.

Ended up getting them for $83 delivered from Amazon.

 

[Alanslegal]

What a goose!

And I was going to call him a turkey.

 

[straitman]

What a goose!

And I was going to call him a turkey.

A man of many hats :!:

 

[oz_mark]

And I was going to call him a turkey.

As long as you're not planning on giving him a slap

 

[Hvr]

What a goose!

And I was going to call him a turkey.

Some poultry (sic) comments

As long as you're not planning on giving him a slap

Now this thread is just getting foul.


Gerry really is an idiot abusing potential customers for not purchasing his products.

I can't remember him criticising the $900 hand out by the government a few years ago, much of which was spent in his stores.

Wonder if this will be one of the classic case studies in MBA classes in a couple of years of how a once mighty business failed to realise that its business plan is no longer relevant?

 

[oz_mark]

Gerry really is an idiot abusing potential customers for not purchasing his products.

If Gerry wants to grow store traffic:
1) Get to know who your customers are - other retailers use loyalty programs to get to know them - cross sell, offer discounts etc
2) Get away from the box shifter mentality and offer proper service
3) Understand that interest free promotions don't drive sales like they used to
4) Don't tell them they should be paying more

 

[Postcode]

I drove past his local store today four times. Usually the car park is fairly full, especially on days like today when it's wet and wild. It seems to bring out the recreational shoppers.

HN's car park was just about empty. Maybe the general public has learned a thing or two.

This news article has 3369 published comments from readers. Anyone's guess on how many unpublished comments. Gerry Harvey retreats from war on online shopper | News.com.au

He seems to have really bitten his own bum here. He has alerted the general public they can get much better deals online from overseas suppliers. Go Harvey.

 

[Mal]

But why has the lovely gentleman backed away from his comments? Can't he take the heat? Was he "advised" to back away? I presume the board of Harvey Norman is absolutely fretting at the moment due to the massive brand damage that has been inflicted.

Let's see what the next move is... Their direction has changed. Instead of Gerry fronting the fight, they're pushing for "small retailers" to instead front the fight. Yep, they have realised that the first wave has failed, and the next wave will involve "Small businesses feeling the pinch from overseas buying" bringing out their stories. Yes, I feel more sympathy for them, but my "savvometer" will quickly sniff out the stores that are just sock puppets for Silly Solomon and Goathead Gerry.

 

[cove]

Gerry has scored an own goal.

 

[Postcode]

I think the damage he has done to Australian retailers both large and small will be felt for a very long time. It's the smaller retailer, often a family owned business who will feel it quickly and over a long period if they survive in business.

But then again most of his stock seems to have the 'Made in China' label on it so he's already done Australians out of a job despite what he says.

What's the bet GH 'retires' in the near future? Shareholders can be such an unforgiving crowd.

 

[chrisb]

2) Get away from the box shifter mentality and offer proper service

Actually, I think he needs to keep the box shifter mentality AND offer proper service.

I want to be able to order online, drive down and quickly pick it up from a dedicated desk within minutes or hours of ordering. Quick, simple, and good stock control meaning your product is always waiting for you. (Or they can mail it of course)

Or, walk in, browse and speak to someone who knows what the products are and who can help with the sale.

These are the two things that online mail-only companies can't offer and so it's the market they need to tap.

 

[medhead]

Or, walk in, browse and speak to someone who knows what the products are and who can help with the sale.

That is a challenge convincing Harvey that he needs to employ staff that know the product. I'm not sure how you could convince him to start doing that now, after all these years.

 

[odysseus]

Another "Own Goal!". Gerry just pointed out (yet again) that people should be buying guitars from New York as they're 30% cheaper than stores here....

Only if you (incorrectly) believe that people only shop based on price. While some do, that's not an accurate or valid statement to apply to everyone.

As for the guitar example, if you add in the GST, then the guitar is still 23% cheaper (70% of the Australian cost, GST is 7% of the Australian cost). How exactly is that 23% due to a tax loophole?

He did not say in that quote the tax was the entirety of the difference. Nor did he claim there that prices will be the same just by adding in GST. I find some are exaggerating his claims seemingly to demonise him...

By applying the tax there, the difference will be smaller. Even if still slightly cheaper offshore, some still prefer shopping locally for the:
- quicker availability
- less risk of damage in transit
- the biggie, it is generally more straightforward getting a refund or dealing with any issues.