Online buys prompt retail inquiry

[Sam]

So it looks like retailers are complaining because they aren't getting enough business:
http://au.news.yahoo.com/latest/a/-/latest/8532830/online-buys-prompt-retail-inquiry/

Well, if they decide to sell at fairer prices, perhaps this wouldn't happen as often. Plus many items are only available online.

[SkyWarp91]

I guess also with online shopping you don't have to deal with rude teenage workers that are so common in most shops these days...

[Tetsuwan Convoy]

Nick Stace, CEO of consumer group Choice, said the review should also examine the high degree of concentration of ownership in the retail sector and the impact of the major chains' market power on consumers and smaller retailers.

Yep, thats for sure. Perhaps if the customer service levels improved, so instead of just paying more and getting crappy service, we are actually getting the service we pay for.

I heard the news on the radio, with the National Retailers association urging people to use shops instead of online, and I laughed. Of course they are going to say that, they are biased towards the shops themselves. I am sure if they could get away with it, they would urge us to pay higher than retail prices as well.:p

Australian shops need to lift their game, especially in the service side of things. I wouldn't mind paying the prices we pay if the service was good, but it isn't.

When I refer to service, I mean not only checkout service, but stock levels, staff levels and direct customer service as a whole. How many times have I gone into a shop for a sale item and it has sold out after the first day? Thats just bad service.

Phew. Rant over.

[SkyWarp91]

Yep, thats for sure. Perhaps if the customer service levels improved, so instead of just paying more and getting crappy service, we are actually getting the service we pay for.

I heard the news on the radio, with the National Retailers association urging people to use shops instead of online, and I laughed. Of course they are going to say that, they are biased towards the shops themselves. I am sure if they could get away with it, they would urge us to pay higher than retail prices as well.:p

Australian shops need to lift their game, especially in the service side of things. I wouldn't mind paying the prices we pay if the service was good, but it isn't.

When I refer to service, I mean not only checkout service, but stock levels, staff levels and direct customer service as a whole. How many times have I gone into a shop for a sale item and it has sold out after the first day? Thats just bad service.

Phew. Rant over.

My biggest problem with retail nowadays is that you have workers that don't do their job and muck around in groups playing around with each other and they get angry at you when you request for help AND then you have those workers that get in your face trying to sell you a product they know little or vaguely about and won't leave you alone when all you want to do is browse!

Granted, not all retail workers are bad. There are good workers too that are polite, informative and understand your concerns as a customer and treat you like a human being - those are the type of workers that I'm proud to have spent my money buying from them. And I feel sorry for these type of workers when they get abused by rude, irrational customers.

Although I hate it too when stores sellout everything on sale on the 1st day, I can understand that as well, it's meant to be a sale :D

One story about bad retail experience is when I went to two different game stores on the same day in the same mall. I was looking for DOOM3 at EB and the guy working there told me sorry but the game's been long gone and discontinued and wished me luck in finding it. Nice guy. I go to GAME and ask the same thing, but this oaf of a douche teenage kid blunty says 'no' and just stands there, he doesn't even say another word and looks at me awkwardly like he wants me to get out. I did get out, and I now know why GAME is the worst videogame store in Australia...

Phew. My rant over too!

[Sam]

I buy online depending on what I want to get. For example, video games are way overpriced in retail shops.

When I wanted to buy StarCraft 2, I asked EB Games to price match (they were selling it for $100) Dicksmith's price of $70.

The response was "We don't price match that game."
"Why not?"
"Because Dicksmith doesn't have any stock, and we're the only ones with stock, so we're not gonna pricematch."
"Fine then, you've lost yourself a customer. I'll just pre-order with Dicksmith and wait till they have more stock."
(In this case, because Dicksmith had a more decent price than online stores and I was willing to wait, I ended up going retail)

And like you guys have said, lack of service is another thing. Sometimes I need help locating an item in a store, only to find there's hardly any staff around. When one of two staff are around, they are already swamped by groups of customers asking them questions.

If retailers want people to use their stores more, they should make sure there's a good staff-to-customer ratio.

At other times it's the wait in the queue that takes longer than necessary. I understand it's a nice thing to make conversation with the customer as you're scanning the goods in, but not when the purchase is over and there's still 10+ people in the queue waiting. In Chinese there's a phrase for this kind of behaviour - "Stopping planet Earth's rotation." :)

/Rant off

[SMHFConvoy]

I guess also with online shopping you don't have to deal with rude teenage workers that are so common in most shops these days...

Well, I think consumers can learn some manners too mate. With retail taking a real hit staffing levels are down and people seem to think that the customer service will remain the same.

Mind you I am not attacking your view I'm just using it to show the other side of the story...

[jaydisc]

Somebody dial 000. We're going to need a Waaaaaaaambulance.

Retailers should instead be complaining to their overseas distributors and suppliers (read: Hasbro) about having their prices adjusted to reflect the AUD.

[SkyWarp91]

Well, I think consumers can learn some manners too mate. With retail taking a real hit staffing levels are down and people seem to think that the customer service will remain the same.

Mind you I am not attacking your view I'm just using it to show the other side of the story...

I did! In my next post!!~~!

[5FDP]

This inquiry does not surprise me in the slightest.

My biggest complaint about going into a retail store is when asking for help you always get the same reply - "If it's not on the shelf, then we don't have it". I’ve caught them out on a number of occasions.

I'll continue to buy online until Australian retailers wise up and realise they'll continue to loose business with this sort of attitude. With the AUD the way it is, it's a win for consumers. If only we could buy our petrol online as well...

[Sky Shadow]

My biggest complaint about going into a retail store is when asking for help you always get the same reply - "If it's not on the shelf, then we don't have it". I’ve caught them out on a number of occasions.

My wife and I went to Bunnings last week and the woman there claimed that there weren't any nuts of the right gauge on the wall she showed us, it meant that "if they're not there, we don't have any". I went on to find exactly what we were looking for thirty seconds later on the opposite wall. Which is one of the reasons why I'd almost always rather browse than receive 'help' from staff. Still, as such, I think browsing is still the one thing 'real' shopping still has over online purchases - I can find totally random things and gifts more easily in a shop than I can online (particularly since my online searches always seem to be limited in their randomness by the fact that they all include the word 'Transformers' in them. :p)

[Ode to a Grasshopper]

My bet's on the government deciding to add GST to items bought online under $1000 due to retail industry pressure and the allure of more revenue, and being totally unable to police it. Most consumers gripe about it but suck it up and do the obedient right thing, a couple of people get busted with nasty fines for dodging it, many more just don't pay it and get away with it, but in the end a lot of people still use online shopping anyway 'cos it's by and large still cheaper even with GST. In the meantime, Ausssie retail prices stay uncompetitively expensive - especially Transformers - and customer service remains often bad and underresourced.
France tries the same thing a few years later and there's riots in the streets - again putting paid to the theory that Aussies are tough, rugged, crocodile-wrestling battlers and the French are cheese-eating surrender monkeys.

[Tetsuwan Convoy]

(particularly since my online searches always seem to be limited in their randomness by the fact that they all include the word 'Transformers' in them. :p)

lol.:D

Just a quick story. I went into a game shop to get Okami on Wii. It had been out for a while, but I hadn't seen any copies in Australia, so I went inot a game shop to see if they could track one down.

Apparently they couldn't. the reason, "Okami didn't exist on wii." Erm, yes it did, but the shop was telling me I was wrong.

One week later I had a copy from the UK for $20. :rolleyes:

[loophole]

IWhen I wanted to buy StarCraft 2, I asked EB Games to price match (they were selling it for $100) Dicksmith's price of $70.

The response was "We don't price match that game."

wow thats dodgy, my local EB pricematched Stracraft 2 with Dicksmiths price no worries

[SharkyMcShark]

I must say on the customer service side of things EB is quite good - the other week I was in there buying some PSP stuff for my sister for Christmas and got chatting to the guy behind the counter about a particular xbox game I was looking for - he said they didn't have it but he did a print out of all the stores in WA that had it, how far away they were, what price it was, and what quantity of it they had.

Which was nice, but then they were asking a ridiculous price for a 4 year old game so really it was a neutral experience all round.

[Burn]

I really don't think anything's going to come of this.

Online Aussie shops already add GST, but for the sake of looking like they're doing something, the Government will ask the ATO to target them in next year's auditing program.

As for overseas online shops, just what is the Government going to do about it? Start taxing all overseas orders? What's the point? That tax is just going to have to be funnelled to customs to pay for the extra wages.

No, just open your eyes for once Government, the problem isn't with the consumer this time. It's with the Retailer.

That being said, I actually do try to shop locally as much as possible. But there are certain things that i'll ALWAYS order online. For example, books.

The nearest book store is an hour's drive away. So factor the petrol in for starters. Add on to that the fact that the in-store price is more expensive than the online price from an Australian online store. Then add on the fact that the online store often gets their stock far quicker than the retail store.

So it's cheaper, faster, and a lot less hassle for me in this case.

[kaiden]

I want to mention that online retailers operate from a warehouse - which keeps their costs down significantly.

thats why its easier to buy games, toys, books (almost everything really...) online.

there are more complicated issues, but it gives me such a headache trying to write it all out.

[Hursticon]

again putting paid to the theory that Aussies are tough, rugged, crocodile-wrestling battlers and the French are cheese-eating surrender monkeys.

http://i1032.photobucket.com/albums/a409/Darkone666au/Webpics/beer.jpg :p

I love it how Jerry Harvey gets back up on his horse and cries poor, because all these people buying online are buying TVs, White goods and the like. :rolleyes::confused:
This idiot represents the vast majority of Monopoly Retailers in this country, with the attitude that: 'Australians would prefer to pay more" and, like ex-Prime Minister Howard, "Australians have never been better off". :mad:
Aussies have been paying too much for too long and as soon as anyone tries to do something about it they're either belittled and/or priced out of the country, I feel sorry for those in Small/Medium retail business who have to try and compete with these mongrels and the tactics they employ.

The other thing I find ridiculous? - Online sales accounted for 3% of total sales for the last financial year and look to increase by, maybe, 0.75%, so out of 250+ Billion Dollars worth of sales, 3% of that is apparently sending the likes of Woolworths, Coles Group, Harvey Norman, Myer, David Jones etc. broke? :rolleyes:
All I can say to this mob is Grow A Dick!.

This isn't targeting employees of these companies, more so their Heads, CEOs and Boards. ;)
Mind you, some employees do need a good swift kick in the rear!

[SkyWarp91]

http://i1032.photobucket.com/albums/a409/Darkone666au/Webpics/beer.jpg :p

I love it how Jerry Harvey gets back up on his horse and cries poor, because all these people buying online are buying TVs, White goods and the like. :rolleyes::confused:
This idiot represents the vast majority of Monopoly Retailers in this country, with the attitude that: 'Australians would prefer to pay more" and, like ex-Prime Minister Howard, "Australians have never been better off". :mad:
Aussies have been paying too much for too long and as soon as anyone tries to do something about it they're either belittled and/or priced out of the country, I feel sorry for those in Small/Medium retail business who have to try and compete with these mongrels and the tactics they employ.

The other thing I find ridiculous? - Online sales accounted for 3% of total sales for the last financial year and look to increase by, maybe, 0.75%, so out of 250+ Billion Dollars worth of sales, 3% of that is apparently sending the likes of Woolworths, Coles Group, Harvey Norman, Myer, David Jones etc. broke? :rolleyes:
All I can say to this mob is Grow A Dick!.

This isn't targeting employees of these companies, more so their Heads, CEOs and Boards. ;)
Mind you, some employees do need a good swift kick in the rear!

Yeah those CEOs are only just covering their own rear-ends, they want to make sure they get that extra dollar so they can buy something ridiculous like the $1000US Pizza made with caviar! (funny how only Russian execs bought it hahaha)

[sanbot]

I gotta be careful not to over generalise here but my experience in the US with customer service was all top notch. As an example I'd be buying clothes and the staff would constantly be checking to see if things were okay and it was busy too! There'd also be times where I'd be in the dressing room and I keep asking for other sizes or other styles and they'd be more then happy to oblige. Whereas in Oz I tend to get attitude from the stuff. Perhaps tipping should become compulsory! :p

It amazes me that not only are things cheaper in the US but they also manage to have good service too.

Which brings me to another point. Even if retailers start going online one thing Australia lacks is demand and I think this will always prevent us from being as competitively priced as other countries that have the scale of demand that will reduce the costs.

[gdmetro]

As many have said- Aussie retail is a joke really. And the prices are just.. ludicrous- not only for tfs.. but I'm no expert.

I hardly buy from retail these days, but both online and retail do have their own merits, although price and service level are just typically better online than domestically. I've never bought electronic goods or clothing from online- I've just heard too many horror stories of that just not working out. That's where being able to inspect the item and trying it on is a must. However, while sometimes the service in domestic retail can be okay, more often than not, service sucks or is non-existent- asking for service in a store is taboo and frowned upon, like I'm wasting their time.

Another factor that someone else talked about is the stock availability. Choice. Online is so much better for that and coupled with the pricing and not having to deal with dirty glances, crap registers, crap parking- i'd go online anyday.

Reading this article and the mention of retailers wanting to scrap the 1k threshold for buying online just pissed me off- insulting. Pandering to govt to change regulations to limit the choice of consumers thus strong-arming into buying from them?....:mad:

Thinking of these greedy retailers inevitably my mind wonders back to the $250 TRU Ghost Starscream fiasco. Do they really think Aussies are that stupid? The retailers in this article are whinging like spoilt children- The online system shouldn't change for retailers, they should get off their asses and work at a solution if they want my money.

It's not like online buyers are actively trying to exploit by overseas buying and not wanting to support domestic- I'm sure a reasonable person could see the merits of keeping the money flowing via domestic retailers.. but for all the problems especially pricing, unless there are major changes, the market will go for the better option- ONLINE.

[SkyWarp91]

Isn't the big difference in retail here to the US is that people that work in Australian retail can make a living out of it? US retail does have cheaper toys and such but their wages are so minimal I've heard.

[SkyWarp91]

As many have said- Aussie retail is a joke really. And the prices are just.. ludicrous- not only for tfs.. but I'm no expert.

I hardly buy from retail these days, but both online and retail do have their own merits, although price and service level are just typically better online than domestically. I've never bought electronic goods or clothing from online- I've just heard too many horror stories of that just not working out. That's where being able to inspect the item and trying it on is a must. However, while sometimes the service in domestic retail can be okay, more often than not, service sucks or is non-existent- asking for service in a store is taboo and frowned upon, like I'm wasting their time.

Another factor that someone else talked about is the stock availability. Choice. Online is so much better for that and coupled with the pricing and not having to deal with dirty glances, crap registers, crap parking- i'd go online anyday.

Reading this article and the mention of retailers wanting to scrap the 1k threshold for buying online just pissed me off- insulting. Pandering to govt to change regulations to limit the choice of consumers thus strong-arming into buying from them?....:mad:

Thinking of these greedy retailers inevitably my mind wonders back to the $250 TRU Ghost Starscream fiasco. Do they really think Aussies are that stupid? The retailers in this article are whinging like spoilt children- The online system shouldn't change for retailers, they should get off their asses and work at a solution if they want my money.

It's not like online buyers are actively trying to exploit by overseas buying and not wanting to support domestic- I'm sure a reasonable person could see the merits of keeping the money flowing via domestic retailers.. but for all the problems especially pricing, unless there are major changes, the market will go for the better option- ONLINE.

+++1000

Like the music industry which played the whining game about people pirating music, the retail industry should have been prepared for the impact of technology on consumers.

[Sharky]

on behalf of Dirge





Retailers should instead be complaining to their overseas distributors and suppliers (read: Hasbro) about having their prices adjusted to reflect the AUD.

This is what the retailers are missing.

My own example:

I bought a pair of Air Max 90 sneakers on eBay from the $USA - $144 shipped. That's _with_ the reseller's markup & eBay fees along with postage.

Hype has them for $190. Last year (lower AUD), Air Max 90s were $180.

A 10% GST would take my purchase to ~$155 - Hype are still well out of the running.

Nike Australia somehow decided to increase local price as the AUD rises. Why the ***** aren't Hype (and others) pressing Nike? Sure, many multinationals (Hasbro included) don't need the Australian market, but their local employees need their jobs and if consumers here bypass them, they lose out. The retailers should be pointing this out & putting pressure on those working for the local arms of these companies.

Burn is correct that the revenue raised by a GST change would be paying wages at customs (or Australia Post - wherever it's levied) - there's a reason why this threshold exists. And raising it would do absolutely nothing for the retail sector, except maybe forcing Australia Post to hire more staff as the Post Offices get busier from parcel collections requiring GST payments.

[Ode to a Grasshopper]

Well, this is getting interesting isn't it?
Harvey "Stormin'" Norman's latest weigh-in - buying on-line overseas is 'unAustralian'. (http://www.news.com.au/money/money-matters/online-sales-will-kill-jobs-retailers/story-e6frfmd9-1225981373508)

[1AZRAEL1]

I have nothing but contempt for these big retailers. Why should we be paying a large portion more than what the rest of the world is paying for the same goods? In regards to Transformers, I point out Ghost Starscream. No way in hell would I buy it from Toys R Us for the price they are asking, when I could buy it for half the price online. CD's, DVD's, all cheaper to buy from Amazon and Ebay, even though JB Hifi are not that expensive, (except in one instance I got them to order a CD for me which cost me $45, when I could have paid half that online) there is a better selection online. The only good store I buy CD's from is Utopia Records, because they have what I want (even though their prices are more than online, I still support them)

/rant

[Sharky]

unAustralian what a joke... same could be said about retailers being unAustralain by not providing a competitive price. by trying to suck as much money as they can out of us

we should expect to pay more to keep it in australaia??? i dont understand one day you have all this stock then another day it is 70% off.... and the 70% off price is probably what it should be retailing for because i will bet you they still turn a profit off it..

i can order a single item from the us, have it posted out here for smaller costs compared to the shops locally, now surley these big retail giants have bulk buying power and reduced postage costs per unit so why are the prices still so high??

Answer, they dont really care about the consumer of the benefits of the future retail marketts and jobs.... it is the hip pocket that hurts.. now i am sure if prices were competitive and resonable they would sell more which would inturn equal more money.....

what ever happened to us shopping around for an item and giving our money to the store we thought had the best deal... not the store that wanted you to pay more just because....

what should really happen is the taxes imposed on retailers be reduced.....

we are currently in a good finacial state for once.. and all that seems to happen is the government and the banks and property markets and all that other stuff just keep taking more and more of our money with very little in the way of pay increases. it hardley seems fair at all. its the opportunity to prosper yet we seem to be punished.

[5FDP]

That hilarious... Harvey Norman is the first to get his face on ACA and promote savings to the public. At least now we know what he really meant was as long as it's in his stores :rolleyes: Screw the retailers!

[kaiden]

That hilarious... Harvey Norman is the first to get his face on ACA and promote savings to the public. At least now we know what he really meant was as long as it's in his stores :rolleyes: Screw the retailers!

Of course thats what he meant, why would he care about other retailers? i read that HN outsources all their stuff anyway, so whats so australian about him?

[5FDP]

Of course thats what he meant, why would he care about other retailers? i read that HN outsources all their stuff anyway, so whats so australian about him?

Sorry, I should have emphasized the sarcasm in my post more clearly ;)

[kup]

Not long ago I had this visitor at work from the US office. He wanted to buy some Australian made sheep skin boots as he figured that they would be cheaper here...Well he was shocked when he realized that the local prices are more than what he would pay for Australian Imports in the US :rolleyes:

People living in Australia pay like 2 to 3x more what most of the developed world pay for retail goods overseas so it shouldn't be a surprise that as more people discover Internet shopping, they are realizing that it's much cheaper to buy from overseas as they are being ripped off by local retail prices.

[gamblor916]

Harvey hurt by buyer backlash. (http://www.smh.com.au/business/harvey-hurt-by-buyer-backlash-20110106-19hjx.html)

No surprise there.

[Autocon]

Is that true? Portmans n jackie e used sweatshops in aus? $2 an hour in unsafe conditions. Read on that page in comments

[SkyWarp91]

Harvey hurt by buyer backlash. (http://www.smh.com.au/business/harvey-hurt-by-buyer-backlash-20110106-19hjx.html)

No surprise there.

Harvey's taken the typical corporate route and has made things even more inconvenient for consumers just to secure his extra few million dollars. He should have learned from mistakes the record and film industries when they faced piracy and tried to employ their inconvenient methods to deter pirates. If Harvey was smart enough, he should have been prepared for what would become of retail when the online markets started to do become more popular. Most corporate retailers think that their customers are just cash machines - nowadays spending is becoming much more difficult and expecting us to pay extra out of our own expenses just so CEOs can live more comfortable lives is just full *$@#$. Times are changing Harvey, stop being a b!tch and live with it.

[Hursticon]

That hilarious... Harvey Norman is the first to get his face on ACA and promote savings to the public. At least now we know what he really meant was as long as it's in his stores :rolleyes: Screw the retailers!

Did you know dude that ACA and the 9 Network were actually dressed down by Gerry Harvey when ACA did a story on HD TVs and went to JB Hi-fi for the story as opposed to Harvey Norman? :eek:
Gerry Harvey has huge financial stakes tied with the advertising on all 3 Commercial Networks which is why if any Electronic or White Goods promotion is done on those networks, they have to go to HN first. :mad:

He truly is one of the least competitive people I've ever seen and it's not surprising that he, like other major retailers, are hating JB Hi-fi at the moment with stock figures like these:
(Prices at the end of yesterday's trade)

JB Hifi - 17.67 per share (Listed 2003) :cool:
Harvey Norman - 2.90 per share (Listed 1987) :p:D

I also found it immensely funny when I was told by my Brother, a JB Hi-fi staff member, that his store alone after the sales leading up to Xmas Day were $1,000,000 + on top of their figures for the previous year and that Nation wide JB Hi-fi was looking to turn over an even greater Profit margin than the previous year - Meanwhile you got Gerry Harvey claiming that Online Retail is destroying Australian Retail, Australian Jobs and the Economy, well if it is sir - JB Hi-fi hasn't noticed so who is really the problem? :rolleyes:


Harvey hurt by buyer backlash. (http://www.smh.com.au/business/harvey-hurt-by-buyer-backlash-20110106-19hjx.html)

No surprise there.

Ha! - That was a really satisfying read, cheers Gamblor. ;):D
I think this pic accurately describes Mr. Harvey and Harvey Norman Holdings Pty Ltd:

http://i1032.photobucket.com/albums/a409/Darkone666au/Webpics/GiantPussy.jpg

[5FDP]

Meanwhile you got Gerry Harvey claiming that Online Retail is destroying Australian Retail, Australian Jobs and the Economy, well if it is sir - JB Hi-fi hasn't noticed so who is really the problem? :rolleyes:

I think you got it in one Hursty ;)

[Sharky]

Not long ago I had this visitor at work from the US office. He wanted to buy some Australian made sheep skin boots as he figured that they would be cheaper here...Well he was shocked when he realized that the local prices are more than what he would pay for Australian Imports in the US :rolleyes:

People living in Australia pay like 2 to 3x more what most of the developed world pay for retail goods overseas so it shouldn't be a surprise that as more people discover Internet shopping, they are realizing that it's much cheaper to buy from overseas as they are being ripped off by local retail prices.

another example of this is my fiancee wanted to purchase a cookbook, this cookbook was written and printed in Australia, after shopping around it was cheaper for her to purchase the book from over seas and have it shipped here and still saved 20 dollars...

this is what is so rediculous about how much we pay for things..

[SGB]

Heh heh:

http://www.nma.tv/fair-coalition-ad-campaign-angers-aussie-consumers/

[gdmetro]

Heh heh:

http://www.nma.tv/fair-coalition-ad-campaign-angers-aussie-consumers/

HAHA!

Very well done.

[Hursticon]

Heh heh:

http://www.nma.tv/fair-coalition-ad-campaign-angers-aussie-consumers/


HAHA!

Very well done.

+1

I loved the overuse of Australiana i.e. Prime Minister Gillard lobbing a Boomerang at the thought bubble! :p:D
(Though, I didn't much like the poor old roo copping it from Sexual Harassment Panda :o)

[1AZRAEL1]

Ha, classic. Love the dinosaur not being able to use the computer lol.

[tron07]

lol.:D

Just a quick story. I went into a game shop to get Okami on Wii. It had been out for a while, but I hadn't seen any copies in Australia, so I went inot a game shop to see if they could track one down.

Apparently they couldn't. the reason, "Okami didn't exist on wii." Erm, yes it did, but the shop was telling me I was wrong.

One week later I had a copy from the UK for $20. :rolleyes:

some of the games was not release over here, thus it doesn't exist... :D

My wii is moded.... never buy any games before, and the wii is in cold storage, playing PS3 most of the time.

[1AZRAEL1]

Well alot of retailers won't be happy with this report from the Productivity Commision (http://www.smh.com.au/business/a-report-that-wont-be-pc-with-retailers-20110804-1id20.html)

IMO, retailers need to find a way to entice customers back to there stores, instead of alienating them further with futile pursuits like this.

[Shirokaze]

Well alot of retailers won't be happy with this report from the Productivity Commision (http://www.smh.com.au/business/a-report-that-wont-be-pc-with-retailers-20110804-1id20.html)

IMO, retailers need to find a way to entice customers back to there stores, instead of alienating them further with futile pursuits like this.

Interesting article, Eli Greenblat seems a tad bitter :p

The only thing that will bring customers back is an improvement on prices. I'm sick of hearing retailers having a sook over the cost of upkeep when it really is such a small percentage of the issue.

For example, when I worked at Harvey Norman I was able to see the cost of all the items that came into the store. I found that quite often prices that the store paid the suppliers were more than what Umart was selling the exact same product for to the public.

Now I would imagine that Umart, being a bricks and mortar store as well as an online business, would share a lot the costs that Harvey Norman has to endure like rental, the cost of hiring staff and insurance etc. So why is it that they seem to be able to stay afloat? Cheaper suppliers combined with moving large amounts of stock at a low percentage markup is my guess.

All Interactive Distribution, a major supplier to stores like HN and Gametraders, still sells new release console games for around the $70 mark depending on the title. Why would anyone bother purchasing from stores that can't afford to offer it for less than the $60-ish dollars I would pay to get the same item from Zavvi, OzGameShop, The Hut or even eBay? This is the reason that Gametraders has begun to lean heavily on parallel importing.

Fix the suppliers, fix the biggest part of the problem IMO.

[gamblor916]

It's just simple math. Who cares about the 10% gst if I can get it for 50% less online. Charging gst on posted goods isn't going to change anything.

[1AZRAEL1]

It's just simple math. Who cares about the 10% gst if I can get it for 50% less online. Charging gst on posted goods isn't going to change anything.

And as the article says, really hard to enforce. If they did manage to find a way, I would still buy online because it's cheaper. Simple as.

[Accel]

I would shop at retail more if Perth had real shopping hours and not ones from the 1950s

[Prowl]

For example, when I worked at Harvey Norman I was able to see the cost of all the items that came into the store. I found that quite often prices that the store paid the suppliers were more than what Umart was selling the exact same product for to the public.


I don't buy that for a second. What they do is buffer the "cost" price so the staff cannot see what the true cost is. That way they protect their margin even if they sell at "cost". Either that or there is a rebate structure in place to offset the artificial cost.

This is a procurement managers speciality. Inflate the costs so that the store/site budget is X for procuring business essentials & then claim back the rebate as a hard saving validating their position by showing savings whilst hiding the real cost price of doing business.

I won't go into details but at the company I work for item X costs $1.02 on the system. I spoke to my supplier & he accidently told me the "true cost" which is $0.62.

In order to remain competitive in the marketplace I often have to go in a low margin or a negative one. The business is fine with that as they still make hidden margin but it screws my sales figures & impacts my commission. I have tricks that I use to counter that & protect my margin but trust me all large corporates do this.

[Tetsuwan Convoy]

I would shop at retail more if Perth had real shopping hours and not ones from the 1950s

LOL!

I would be more likely to buy less online if the service were any good. I am tired of knowing more than most of the staff I encounter when buying something. That is assuming I can get anyone to notice me in the first place...:rolleyes:

So for me, high prices, bad service and closed shops makes me shop online.

[Jay-Tron]

Sometimes pushy sales people can wreck your shopping experience as well. You do your research, decide what you want, go into a shop to buy it and the sales people try to sell you add-ons and/or tell you you should buy the more expensive product because it'll be better for you even though it cost more and they just don't seem to take no for an answer. A little bit of info and advice is nice but when they go on and on and try to make you buy things you don't want it makes you not want to go back there...

[Shirokaze]

I don't buy that for a second. What they do is buffer the "cost" price so the staff cannot see what the true cost is. That way they protect their margin even if they sell at "cost". Either that or there is a rebate structure in place to offset the artificial cost.

This is a procurement managers speciality. Inflate the costs so that the store/site budget is X for procuring business essentials & then claim back the rebate as a hard saving validating their position by showing savings whilst hiding the real cost price of doing business.

I won't go into details but at the company I work for item X costs $1.02 on the system. I spoke to my supplier & he accidently told me the "true cost" which is $0.62.

In order to remain competitive in the marketplace I often have to go in a low margin or a negative one. The business is fine with that as they still make hidden margin but it screws my sales figures & impacts my commission. I have tricks that I use to counter that & protect my margin but trust me all large corporates do this.


Prowl, you're absolutely spot on. Harvey Norman adds a massive sum to some items, laptops and monitors especially, but when you have a high enough level account in POS you can see the invoice price, how much is added on top by head office for their 'rebate', and the amount added to cover shipping.

For example, a while ago I saw a $314 Samsung monitor at Umart. At Harvey's it was invoiced for $332 +18ish shipping + $66 rebate = "cost" of $416 stickered at the Samsung RRP of $499.99.

I'm not saying that stores don't hold any of the blame, like you said it's a fairly standard practice for larger companies which screws over the commission based staff more than anyone else. But IMO the suppliers are still the biggest problem.

Here's another article (like the one Azrael linked) about the productivity commission report. It's regarding the price of Video Games and references exerts about supplier issues

http://www.kotaku.com.au/2011/08/the-productivity-commission-and-the-price-of-video-games-in-australia/

[Sharky]

Harvey Norman is frustrating place to do business with.

i recently purchased carpet from a local carpet retailer for my new home, now if anyone knows what there carpet industry is like there is alot of choice but also the same carpet is rebranded for different retailers.


the carpet i purcahsed is the same as what HN call IQ-150 smartstrand (exactly the same) now harvey norman has put the pressure on the supplier to stop selling a particular carpet to the local carpet business because they want to sell this product exclusivly (and at twice the price)

i think it is very unfair for HN to pressure suppliers to take stock away from a retailer that has been selling it longer (and cheaper) then them and makes a joke out of what mr harvey said about supporting local businesses.

i Did support a local business and his over priced franchise muscled in on the stock.

[1AZRAEL1]

See now that is just crap. The supplier better not fold under the pressure of HN, and should stop supplying it to HN instead.

They are really painting a bad picture of themselves, that's why their business is losing sales.

[bowspearer]

Harvey Norman is frustrating place to do business with.

i recently purchased carpet from a local carpet retailer for my new home, now if anyone knows what there carpet industry is like there is alot of choice but also the same carpet is rebranded for different retailers.


the carpet i purcahsed is the same as what HN call IQ-150 smartstrand (exactly the same) now harvey norman has put the pressure on the supplier to stop selling a particular carpet to the local carpet business because they want to sell this product exclusivly (and at twice the price)

i think it is very unfair for HN to pressure suppliers to take stock away from a retailer that has been selling it longer (and cheaper) then them and makes a joke out of what mr harvey said about supporting local businesses.

i Did support a local business and his over priced franchise muscled in on the stock.

That's the fascism of free market economics I'm afraid and it's no different to the likes of Coles and Woolies bullying competition out of the way.

[SkyWarp91]

That's the fascism of free market economics I'm afraid and it's no different to the likes of Coles and Woolies bullying competition out of the way.

meh if you tried to help the little guys and they rejected you for superficial reasons you too would want to join the corporate big boys in crushing the opposition, which brings me to my next question - would online buying affect supermarkets at all?

[Hursticon]

which brings me to my next question - would online buying affect supermarkets at all?

With all hope. :cool:
The sheer number of Duopolies in this country is absolutely disgusting. :mad:

I swear, if I ever see Gerry Harvey in public I am bloody well going to throw something at that 2 faced Bulls*** artist! :mad:

[Shirokaze]

Harvey Norman is frustrating place to do business with.

i recently purchased carpet from a local carpet retailer for my new home, now if anyone knows what there carpet industry is like there is alot of choice but also the same carpet is rebranded for different retailers.

the carpet i purcahsed is the same as what HN call IQ-150 smartstrand (exactly the same) now harvey norman has put the pressure on the supplier to stop selling a particular carpet to the local carpet business because they want to sell this product exclusivly (and at twice the price)

i think it is very unfair for HN to pressure suppliers to take stock away from a retailer that has been selling it longer (and cheaper) then them and makes a joke out of what mr harvey said about supporting local businesses.

i Did support a local business and his over priced franchise muscled in on the stock.

That, good sir, is one of many reasons I no longer work there. :o

[Accel]

You know even if all Aussie retailers go online. I still receive items from America ordered the same day and the same basic delivery. JBhifi takes like a week to pack an order @_@