Transformers retail prices in 2012 unchanged despite exchange rate

[SMHFConvoy]

Okay I'm seeing the words, "retail", "huge" and "wages" being thrown around.

I work in retail as a visual merchandiser and my pay has only just gone up to $19 an hour and I only get 25 hours a week. So stop quoting Mr Abbott and Hockey's falsehoods about a wages blow out.

[DELTAprime]

Okay I'm seeing the words, "retail", "huge" and "wages" being thrown around.

I work in retail as a visual merchandiser and my pay has only just gone up to $19 an hour and I only get 25 hours a week. So stop quoting Mr Abbott and Hockey's falsehoods about a wages blow out.

Alright a little background then I don't want to hear about it anymore.

I'm not quoting any politicians, I hate them all and I don't even watch the news so I don't know what those idiots say. It's my knowledge from listing to people like economist Michael Pachter and my OWN experience working in retail since I graduated High School 13 year ago that I'm speaking from. I've done management so I've seen what wages are really like and they are ridiculous.

My first job was in Produce at a supermarket and where i got most of my management experience. We took in $8000 at the register per week sometimes $10000, to run the department well wages were around $4000 a week even using jr.'s after school instead of older workers. So thats half an average weeks income from the department used on wages if you staff to keep the place full at all times which most supermarkets don't anymore because of wages. Out of the rest you still have to pay the farmer, delivery, rent on crates and pallets and some of front counter wages.

These days I refuse to do anything to do with management. I'm happiest just serving customers. I know it's frustrating to look at an item and know it cost less in other countries but just because the exchange rate is around $0.80 to $1 doesn't mean that an item thats $10 in America should cost $12 on our shelves. Bottom line is if you want a $13 +GST deluxe class toy in Australia you have to lower cost to the stores first.

[griffin]

I can relate to that.
The last (warehouse) job I was at was what I considered "overpaid" for what we did, and most people were earning more than the junior managers... but a change of management 4-5 years ago, has led to pay rates dropping. Not just freezing, but actually going down, because of the manipulation of our minimum productivity rates.
I went down from mid 80 thousand to mid 60 thousand during that time, but still doing the same rate of work.
Politicians are making it worse, too busy fighting each other instead of fighting FOR us.
As such, the we do indeed have some high wages in Australia, but the gap between the wages of those industries and others is widening, while the costs of living keep going up faster than the lower paid people are earning.


As for the comparative costs here to America, last year one of the Members here got their hands on the wholesale price listing by Hasbro. The Deluxe class wholesale price is AU$18.50 (about US$16.65)... that's means Hasbro Australia are charging our Retailers MORE than what they cost at the stores in America.
So before the variable factors come into play (tax, transport, wages), American retailers pay about US$8 for a Deluxe (giving Hasbro America a little under $4 profit per unit), while our retailers pay US$16.65 for a Deluxe (giving Hasbro Australia about $12 profit per unit - and most of that goes back to Hasbro America, which is why their quarterly statements show a huge international revenue profit AFTER the local branches have covered their costs and profit).

[Mythirax]

I went down from mid 80 thousand to mid 60 thousand during that time, but still doing the same rate of work.

That sucks man. Hate hearing those sort of things, especially when you have to do the exact same work. Just isn't fair.

[DELTAprime]

As for the comparative costs here to America, last year one of the Members here got their hands on the wholesale price listing by Hasbro. The Deluxe class wholesale price is AU$18.50 (about US$16.65)... that's means Hasbro Australia are charging our Retailers MORE than what they cost at the stores in America.
So before the variable factors come into play (tax, transport, wages), American retailers pay about US$8 for a Deluxe (giving Hasbro America a little under $4 profit per unit), while our retailers pay US$16.65 for a Deluxe (giving Hasbro Australia about $12 profit per unit - and most of that goes back to Hasbro America, which is why their quarterly statements show a huge international revenue profit AFTER the local branches have covered their costs and profit).

OK Griff, that adds a new wrinkle to the argument. A well known problem they have in America is Walmart and to lesser extent Amazon's predatory practices where all they care about is their profit, not their suppliers viability. Walmart is well known to squeeze suppliers like Hasbro so much that they can't make a profit. The supplier then can choose not to do business with Walmart which is very bad idea with how huge Walmart is, or they can take what little cash Walmart will offer for their product. Unfortunately they can't then goto Target, Kmart or TRU and say "we will sell the item to you for $4 more than we sell to Walmart". That won't fly either.

Basically if those figures are accurate then Hasbro is undercharging America and really should be charging them something similar to our prices just to make a profit. May I suggest adding to your article on pricing in AU vs US some language that points out that thanks to Walmart squeezing it's suppliers Hasbro may well be undercharging its American customers and not necessarily over charging us.

Do a Google search for "walmart forces suppliers to lower prices" for references.

[Trent]

OK Griff, that adds a new wrinkle to the argument. A well known problem they have in America is Walmart and to lesser extent Amazon's predatory practices where all they care about is their profit, not their suppliers viability. Walmart is well known to squeeze suppliers like Hasbro so much that they can't make a profit. The supplier then can choose not to do business with Walmart which is very bad idea with how huge Walmart is, or they can take what little cash Walmart will offer for their product. Unfortunately they can't then goto Target, Kmart or TRU and say "we will sell the item to you for $4 more than we sell to Walmart". That won't fly either.

Basically if those figures are accurate then Hasbro is undercharging America and really should be charging them something similar to our prices just to make a profit. May I suggest adding to your article on pricing in AU vs US some language that points out that thanks to Walmart squeezing it's suppliers Hasbro may well be undercharging its American customers and not necessarily over charging us.

Do a Google search for "walmart forces suppliers to lower prices" for references.

It's not just toys that face this issue in Australia. Why do you think that we just held an enquiry into software prices where Adobe and Apple were forced to justify at an enquiry why Australians pay up to twice as much for digital downloads of their content? Gues what? They couldn't!! Shock! Horror!!

This has nothing to do with Australian wages. The car industry is the same. Take a brand new Japanes car, a corolla. In the USA, a new corolla is $16,800 before all your dealer charges. (I just looked at the Toyota USA site). The same model in Aus is $19,990. Almost $3K difference for no reason at all. Take a more expensive car like a WRX. USA price $25,995. Aus price $41,000! For the SAME car! How do car manufacturers justify that? Shipping distance is about equal, cars are the same execpt for RHD/LHD.

These prices arise form the fact that we are an isolated market with less buying power. Our isolation has also in th epast made it easier for international companies to exploit us as we really had no idea what other countries pay for the same items we do.

I don't disagree that some wages in Australia have grown to unsustainable levels in the last decade or so, but that it not the cause of us paying considerably more for TFs than the USA. We have always paid more.

[5FDP]

This has nothing to do with Australian wages.

These prices arise form the fact that we are an isolated market with less buying power.

QFT

[DELTAprime]

This has nothing to do with Australian wages.

These prices arise form the fact that we are an isolated market with less buying power.

First point, we don't just put markup on an item at the store to make a profit for the shareholders. It's also to cover our wages (and they are very high) among other expenses.

As for your second point I'm glad you pointed it out. I tried to put that in a post but didn't know how to articulate it properly so I deleted it. Thank you

[Mythirax]

QFT

That makes my quantum fields particles feel all excited and stuff. Oh "Quoted for Truth"?

[griffin]

(moved several posts here, since I posted the comment that led to that huge derailment of the news topic)