View Full Version : Why Australians are paying higher prices for technology??
http://www.theaustralian.com.au/australian-it/exec-tech/why-australians-are-paying-higher-prices-for-technology/story-e6frgazf-1226074497752
HUGE price differences in consumer electronics sold here and in the US continue, with local retailers appearing not to pass on the advantage of our surging dollar.
Australians who buy locally still pay through the nose for some desktops, laptops, tablets, computer games and consoles and music bought at online stores, compared with consumers in the US.
Computer firms are still setting their recommended retail prices often up to 50 per cent higher in Australia compared with the US.
The base model of the popular Lenovo X1, for example, is reduced on Lenovo's Australian site from $3428 to $1979, but a similar reduction on its US parent site lists it at $US1191 ($1130).
The 16GB model of the ASUS Transformer without keyboard sells at Harvey Norman for $598, but in the US it can be bought for $US400.
While Apple's Australian mark-ups on iMacs, MacBook Pros and iPads are not as severe, they were significant, as Apple can control the distribution and cost of its goods.
The discrepancy in costs between a US and Australian iPad 2 is $80-$120, while a new iMac in Australia can cost up to $250 more.
Despite the Australian dollar's value at about $US1.05 last weekend, music bought through iTunes in Australia typically costs 30 per cent more than when bought through iTunes in the US
....
So how much are we being ripped off?
Scotty72
14-06-2011, 8:53pm
Because they know we are suckers...
Buy from OS, that will be the only message local distributors and retailers will listen to.
ricktas
14-06-2011, 8:56pm
I think the bigger question here is WHO are we being ripped off by?
Bear Dale
14-06-2011, 8:57pm
So how much are we being ripped off?
Too bloody much!!
A bricks and mortar shop front - fair enough - they provide some level of service and have overheads etc.
But! Apple iTunes ? there is NO excuse. Ditto Microsoft products.
Scotty72
14-06-2011, 9:01pm
I think the bigger question here is WHO are we being ripped off by?
Last year, Apple justified its higher prices (than US) for music downloads on the weak Aus $ (than US).
Now we have a $ worth about US 105-107 cents, nothing has changed.
No wonder the use of proxy sites is soaring :cool:
Is not cheap having overseas operations
Is not cheap having overseas operations
You're right. they should close down all the US branches.
I am totally against the high retail prices, like most of us. I wonder if it has anything to do with the Australian average weekly wage ( which I know is a joke ), against the American, which I believe is very low. Any thoughts ?
Bennymiata
15-06-2011, 9:31am
The facts are that running a warehouse here in OZ is more expensive than running one in say Los Angeles.
The rents are similar per square metre, but their labour rates are far cheaper than ours.
Our minimum wage is around $19 per hour + 4 weeks holiday pay, super, sick leave, long service leave, workers comp and even payroll tax, whereas in the US for example, the minimum legal wage is around US$7.50 an hour, with only 2 weeks leave, no super, no long service leave etc.
Fuel is much cheaper in the US, which means that goods can be transported cheaper, and as their roads are better than ours, the goods get their faster too.
However, the BIG difference is volume.
Where a store here may order a pallet load of a certain item, in the US, they talk about truck loads, and the bigger the shipment, the lower the costs.
Retail margins are similar between Oz and the US, but the staff get paid less and they sell a lot more.
Don't forget that the US has around 15 times our population so competition is even fiercer than it is here.
Compare a good camera shop here with a good shop in the US.
One of the better stocked stores I frequent is Digital Camera Warehouse.
Now they have lots of stuff in stock, with most Canon and Nikon lenses on display, but go into B&H's store in New York, where you have 3 large floors of every camera and accessory you have ever heard about, then multiply it by 4!
Just the vast range of goodies wil make you want to buy!
I guess we do get ripped off somewhat here, but that is the price we pay for high wages and overheads I'm afraid.
junqbox
15-06-2011, 9:48am
A major factor not usually brought inbto these discussions is the impact of Mr Lowy, et al, who charge extroadinary rents in his Westfield centres, try 30%+ premium over the strip shops. The retailer has to pass this on somehow.
leaves you with-
Higher wages for all here
Higher rents
Lower volumes (particularly for fast updating product, tech, fashion, etc)
Same to similar marketing costs as denser markets (eg US, etc)
camerasnoop
15-06-2011, 10:17am
Quite frankly, I believe the real culprits here are the Distributors and Importers. I have been shown the prices that Harvey Norman pays for their Canon gear, and it is more expensive than I pay retail in the US. If HN can't get better wholesale prices with their bargaining power, then something is wrong. That is where I'd be applying the blowtorch.:eek:
scpleta
15-06-2011, 11:26am
I think it's not only the Technology products that has this situation of "over pricing". It's almost everything. For instance, in the US, a can of Coke only costs US$1.00 in retail which is cheaper than our AU$2.50! :eek:
Yes, we can buy what we can from the internet but in the whole scheme of things, we are trapped by our own local retailers. :(
Scotty72
15-06-2011, 11:41am
I think we are being slow to accept the new paradigm: big, brash retail is dying.
Borders collapse is a prime eg. Big, flashy (expensive) retail won't survive for selling generic products - such as most photography equipment.
Sure, their will be those who like to touch / feel etc. But, this will become a niche thing.
Why would a but a new book at borders for $45 when I can get it from Amazon for $25 or even download it to Kindle, Kobo, iPad etc. for $15?
Bear Dale
15-06-2011, 11:53am
Booksellers outraged over minister's predictions
http://www.smh.com.au/small-business/booksellers-outraged-over-ministers-predictions-20110614-1g15n.html
Booksellers' jaws dropped today upon hearing that federal Minister for Small Business Nick Sherry had predicted that online shopping would wipe out general bookstores within five years.
Scotty72
15-06-2011, 3:01pm
Booksellers outraged over minister's predictions
http://www.smh.com.au/small-business/booksellers-outraged-over-ministers-predictions-20110614-1g15n.html
I just heard the minister on 702 - ABC.
He says he is a very frequent customer of a certain & famous specialist bookstore in the Sydney CBD. He isn't against bookstores, he just sees writing on the wall.
incisor
15-06-2011, 3:10pm
http://www.abc.net.au/news/stories/2011/06/07/3238030.htm?section=justin
The simple fact is that the government supports and actually legislates to the detriment of the local retailer who is already as stated faced with higher tenancy, higher wages and higher compliance costs than our overseas counterparts. A perfect example is this week itunes has started to sell Lonely Planet Books, which we because of government restrictions can only source from one supplier and as such they dictate our cost price with no competition, we then actually sell these at a reduced margin to give us a perceived advantage(albeit a small one)- well not any more, the itunes site has one of the best selling titles for free, thats right FREE, how do we compete, quite simply we cant and when all the bricks and mortar stores are gone and the online retailers own the market and they will push margins back to where they started and should you wish to browse or ask a question, return an item or even just get general type knowledge and interaction - guess what ? Then everyone will be moaning about the good old days.
Yes there are some woefully pathetic retailers out there but retail is the single largest employer in australia and if you find a good retailer you should support them as much as possible.
Scotty72
15-06-2011, 3:51pm
The simple fact is that the government supports and actually legislates to the detriment of the local retailer who is already as stated faced with higher tenancy, higher wages and higher compliance costs than our overseas counterparts. A perfect example is this week itunes has started to sell Lonely Planet Books, which we because of government restrictions can only source from one supplier and as such they dictate our cost price with no competition, we then actually sell these at a reduced margin to give us a perceived advantage(albeit a small one)- well not any more, the itunes site has one of the best selling titles for free, thats right FREE, how do we compete, quite simply we cant and when all the bricks and mortar stores are gone and the online retailers own the market and they will push margins back to where they started and should you wish to browse or ask a question, return an item or even just get general type knowledge and interaction - guess what ? Then everyone will be moaning about the good old days.
Yes there are some woefully pathetic retailers out there but retail is the single largest employer in australia and if you find a good retailer you should support them as much as possible.
May I suggest a reason I stopped buying dead-tree books from local book-stores. Not to start a row but, to explain.
I walked into a Borders (too big and brashy for me), I was surprised by how comfortable they made me feel. They provided seats to sit and flip pages etc. = great. But, I tried to support the small players who sold for roughly the same price anyway.
Then, I walked into a certain CBD book store, I picked up a book (photography - btw) and started to flick. I was then harassed by the guy behind the counter, "Hey, mate this aint the library."
Sadly, I've had too many similar experiences.
Another famous bookstore in Newtown: I went in to find a well known book (Breakfast at Tiffany's). They didn't have it (fair enough). I asked the girl at the counter if she could get it in. 'Oh, who's that by?' Duh! What's the advantage when they put illiterates at the counter?
If I'm going to get bad service, I may as well get it online at 1/2 price.
Scotty
May I suggest a reason I stopped buying dead-tree books from local book-stores. Not to start a row but, to explain.
I walked into a Borders (too big and brashy for me), I was surprised by how comfortable they made me feel. They provided seats to sit and flip pages etc. = great. But, I tried to support the small players who sold for roughly the same price anyway.
Then, I walked into a certain CBD book store, I picked up a book (photography - btw) and started to flick. I was then harassed by the guy behind the counter, "Hey, mate this aint the library."
Sadly, I've had too many similar experiences.
Another famous bookstore in Newtown: I went in to find a well known book (Breakfast at Tiffany's). They didn't have it (fair enough). I asked the girl at the counter if she could get it in. 'Oh, who's that by?' Duh! What's the advantage when they put illiterates at the counter?
If I'm going to get bad service, I may as well get it online at 1/2 price.
Scotty
You unfortunately have hit the nail on the head and it is those bad retailers that are screwing it for all of us, I know that our predecessor did exactly what you said, I would implore you to seek out a better retailer who does appreciate your business and support and in the absence of such a retailer, then go online I know I would and unfortunately do. But there are many smaller retailers out there who pride themselves on customer service and will provide service intelligently when required, I don't care if you read the whole book in store, we will order any title you chose, we even let people remove packaging so they can more closely inspect the product. I would be upset if we did any less.
I just want everyone to understand that there is a bigger picture at play here.
Scotty72
15-06-2011, 4:15pm
You unfortunately have hit the nail on the head and it is those bad retailers that are screwing it for all of us, I know that our predecessor did exactly what you said, I would implore you to seek out a better retailer who does appreciate your business and support and in the absence of such a retailer, then go online I know I would and unfortunately do. But there are many smaller retailers out there who pride themselves on customer service and will provide service intelligently when required, I don't care if you read the whole book in store, we will order any title you chose, we even let people remove packaging so they can more closely inspect the product. I would be upset if we did any less.
I just want everyone to understand that there is a bigger picture at play here.
There is another aspect at play here: shifting attitudes between generations.
Most Gen Ys scratch their heads if you suggest they listen to an LP or cassette (or give it a few years - even a CD) : it is just normal that they download music to an iPod or similar.
By the time the Gen Zs are out and spending money on "books", many of them may see paper books as quaint (just like LPs are now). "Why would you buy a paper version?", they may wonder.
Already, there are school libraries that have replaced their books with Kindles or iPads... So, those students will never have the notion of touching and feeling a book instilled.
I think Nick Sherry is 100% right, give it 5-10 years and book stores will be like record shops, and film cameras are today: A few will survive for the collectors, the nostalgic or the stubborn.
Yes, it is a 'Brave New World' (I have the paper back :th3: and the eBook versions) but, one I think we will all have to adapt to.
I can understand your sentiments but to say that in five years they will be history, i suppose that will be the same history that killed newsprint when radio arrived, or when television killed radio, adapt and survive is what is needed, but when a government legislates business's out of business then thats a different story, and unfortunately that is what is happening in australia today- not just in books but in all retail and hospitality sectors. All I ask is that the playing field is made level so we can compete in an honest way. I can give you many examples of how SMALL business is being assassinated by stealth everyday.
Scotty72
15-06-2011, 5:40pm
Maybe not history but, very different.
Email hasn't put the post offices out of business but, they are near unrecognisable from 15 years ago. Maybe selling everything from printer ink to personalised pencils... and even a book or two :lol:
Scotty
Yep. Post offices a perfect example. Run by the government they are now trying to assinate small business by selling non-core products and not allowing any competitors to sell their products. They are not small business they are a govt department pretending to be a small business by using franchise model. You may wish to find out just how outdated they are. But as they have deep pockets funded by the tax payer they just keep on throwing money in the hole. But who cares as it is only tax payer funds. :)
geoffsta
15-06-2011, 6:37pm
The truth of the matter is, we all shot ourselves in the foot. Australia is a gutless country. It's ran by minorities who believe they act for the rest of us.
Unions must take a big part of the blame. Very usefull in the 50's, & 60's, but now they are too big and too powerful that the government (All parties) can not handle them.
These people see that a company is making an extra 2 cents profit, the union say that they want it.
The banks are another problem. Letting people and businesses take out outrageous loans that have to be repaid, so up go the prices. Then people need more money to afford the price hikes, so up go the wages. With that people can afford to pay more for housing, so the bank loans them more money. And so on, and so on.
If a government had balls, it would buy back all the utilities it sold off. Tell the parents that think they can run a school to bugger off, and let it be run by the education department like it use to. The government should also buy back the commonwealth bank and lower rates to make the others follow suit. The other banks should be made to pay a 30% (A big greedy bank tax)on their profits. the ACCC need to grow balls, and act on the fuel companies. And the EPA needs to say enough is enough.
We could all then afford to buy Australian. And make the diggers past and present proud to have fought and died for their country.
{removed}
My 2 cents.
Geoff.
MarkChap
15-06-2011, 9:01pm
KEEP This on Topic and don't let it get personal, if persoanl attacks are made bans WILL be handed out
Off topic discussion removed.
Xebadir
16-06-2011, 1:40am
I would wonder if its the lack of demand, but rather if it is just because as Australian's we put up with it. Over in the US a consumer will not tolerate high prices, and will actually not buy the item if they don't like the price...yes it helps having multiple large corps which help drive down prices, but hey the ACCC and the government is at fault there. Wages in general are lower, which also forces prices down as people have less to spend. Its like people have realised that they can get away with it in Australia, and the government won't do anything as it means more tax dollars. Its not only killing us locally in this avenue, its killing our tourism (who would pay for some cruddy hotel in Aus for 110$ when in the US the same hotel is $50, similarly for food...we pay over double, clothing we pay nearly treble). Its going to come to a head eventually. Sooner or later we will force our own recession, especially with the Reserve Bank and its blunt instrument.
Tommo1965
16-06-2011, 5:51am
some very good points in this thread....
I dont see bookshops closing in five years..perhaps in 20years..when all the oldies that prefer books drop of the perch....these Ipad thingy's etc area royal pain..much prefer a paper book...it adds to my experience of reading...
one thing is clear about tech..one good power cut and we are back at the stone age....
online shopping isn't as big as a polarized forum thread might thing...most people I know use online for small ticket items..but for larger purchases..its bricks and mortar outlets, where you can feel and touch/try..and return if the wheel fall off !!..
we are a majority run by a minority ....and most of that minority are right tools....people that seeks those jobs {pollies} are normally either in it for themselves or right wing activists and the crap rises to the top of the barrel..not the bottom .
theres a lot of problems this country faces...a couple of good wars should sort it out :eek:
The facts are that running a warehouse here in OZ is more expensive than running one in say Los Angeles.
The rents are similar per square metre, but their labour rates are far cheaper than ours.
Our minimum wage is around $19 per hour + 4 weeks holiday pay, super, sick leave, long service leave, workers comp and even payroll tax, whereas in the US for example, the minimum legal wage is around US$7.50 an hour, with only 2 weeks leave, no super, no long service leave etc.
Fuel is much cheaper in the US, which means that goods can be transported cheaper, and as their roads are better than ours, the goods get their faster too.
However, the BIG difference is volume.
Where a store here may order a pallet load of a certain item, in the US, they talk about truck loads, and the bigger the shipment, the lower the costs.
Retail margins are similar between Oz and the US, but the staff get paid less and they sell a lot more.
Don't forget that the US has around 15 times our population so competition is even fiercer than it is here.
Compare a good camera shop here with a good shop in the US.
One of the better stocked stores I frequent is Digital Camera Warehouse.
Now they have lots of stuff in stock, with most Canon and Nikon lenses on display, but go into B&H's store in New York, where you have 3 large floors of every camera and accessory you have ever heard about, then multiply it by 4!
Just the vast range of goodies wil make you want to buy!
I guess we do get ripped off somewhat here, but that is the price we pay for high wages and overheads I'm afraid. I think you have hit the nail on the head Benny it would be good to see price's come down now that our aussie $ is the way it is now you would think the prices would drop but they did not so unfair but that is the way it is I guess but they keep saying buy Australian with the opportunity's now days to buy online we can tap into the U.S market but maybe with some things it will mean that warranty's may not be valid and sending goods back to the U.S for repairs
Rattus79
16-06-2011, 10:15am
In all of this has anyone stopped to think about the relative market size??
The US has 250 Million People to our 20 Million, That's just a few more chances to sell said product.
Lance B
16-06-2011, 10:46am
In all of this has anyone stopped to think about the relative market size??
The US has 250 Million People to our 20 Million, That's just a few more chances to sell said product.
Of course, this is a large factor in it. What some people do not realise is that many of these large manufacturers like Nikon, Canon, Apple, et al, offer discount incentives the more that the seller buys or for what ever they sell for a particular week/month and at the end of the week/month, they get a further rebate depending on the amount they have sold. Also, they may get added incentives for particular models they sell as the manufacturer may have a new model to sell or have a excess stock to get rid of. So, if we take a seller like B&H, if they write $100,000 worth of Nikon sales for a particular month, they may get a 10% discount over and above their already (probably large) normal discount, but if they sell $200,000, they may get a furher 5 or 10% again. Simply the scale of B&H's purchasing power precludes any Australian store from even getting anywhere near this amount.
Rattus79
16-06-2011, 10:56am
Add to that Transport costs to Australia and you're coming close to our pricing.
I'm not saying it's right, but it's the way it is.
camerasnoop
16-06-2011, 11:34am
Not wishing to ruffle anyone's feathers here, but transport costs are a bit of a red-herring. Japan may be closer to the US by Aircraft Carrier, but I wouldn't see the freight being very much different to Australia from Japan by cargo vessel. With much of the electronic gear being made in China these days, we're closer to the source than the US is.
Rattus79
16-06-2011, 1:29pm
good point, but i ask you:
If you could buy an item for $100 and sell it in the us for $500 or in Australia for the same item for $800, would you reduce the price to keep a few people on the internet (who are only going to buy it from you in the US anyway) happy?
Nikon, Canon, Sony, etc are all happy, as they are going to get the sale one way or the other. They don't care.
Bennymiata
16-06-2011, 2:33pm
Of course, this is a large factor in it. What some people do not realise is that many of these large manufacturers like Nikon, Canon, Apple, et al, offer discount incentives the more that the seller buys or for what ever they sell for a particular week/month and at the end of the week/month, they get a further rebate depending on the amount they have sold. Also, they may get added incentives for particular models they sell as the manufacturer may have a new model to sell or have a excess stock to get rid of. So, if we take a seller like B&H, if they write $100,000 worth of Nikon sales for a particular month, they may get a 10% discount over and above their already (probably large) normal discount, but if they sell $200,000, they may get a furher 5 or 10% again. Simply the scale of B&H's purchasing power precludes any Australian store from even getting anywhere near this amount.
That's why at Harvey's, they're happy to show you the invoice, as the actual price they pay is somewhat less than what's on the invoice.
The actual difference can be around 25%, as this is made up of advertising budget, volume discounts, a bit for the head office, etc etc.
Mainstream retailers also make big mark-ups on most stuff.
In fashion, what Myer buy for $30.00, they sell for $100, and I think the major retailers will have to have a re-think about the margins they make.
These same retailers also hammer their suppliers constantly with claims for advertising, and discounts when they have a sale.
For example, Myer buys say $10,000 worth of stuff from a company, then start retailing them at their normal margin.
The goods don't sell so well, or their normal sale period starts, so the store marks them down by 30%.
Who do you think pays for the 30% markdown?
Not Myer, it's the supplier who gets the cheque and notices tha they have deducted 30% off the invoice value and the supplier has nothing he can do about it, unless he doesn't want to supply them again.
The stores force the supplier to allow the stores to maintain their percentage margins, and the suppliers wear all the costs.
In regards to paper books.
Personally, I'm surprised they weren't out of fashion many years ago.
The only real beauty of buying actual books, is that they look nice on the bookshelf. Certainly nicer than a row of SD cards!
To me, electronic books are the way to go, as you can change the font size so old buggers like me can actually read them, and you can also have videos and photos embedded in them.
Think of all the trees that have to be cut down to make these books, of which a certain percentage of them, that don't sell, are just burned for nothing.
Look at the White and Yellow Pages for example.
Many years ago, the company that owns them bought their own forests to make sure they would (no pun intended) never have a shortage of raw materials, but really, how often do you go to one of these books to look up a number, rather than jumping on the web and finding it out from there?
Think of the millions of these books that are distributed each year and how many trees need to be felled to make them, to say nothing of the actual cost of production and the costs of getting rid of them all each year.
Personally, I think these books should only be supplied to people who REALLY need them in book form, with everyone else just getting a CD instead.
junqbox
16-06-2011, 3:17pm
Are we?
The prices for cameras here are about the same as they are in Japan. When you search for a particular model in various countries, US included, the prices are not dissimilar among the B&M stores. There'll always be the anomolies, like B&H, who do extroadinary volume, from a super large store and keen business practices.
After 25 or more years in the retail sector, I have learnt this (inter alia)- Australians want Versace/Armani but they want to buy it at KMart.
We, as a collective, have developed a very strange concept that the price of things should not go up, ever, and if anything, should always be going down. The only way to acheive this is to have things made by nations with less attention to worker/human rights than we do, hence everything made in China. We then decry the loss of industry here. Well if you bought all your clothing from BigW Kmart Target, et al, then you can't blame anyone else. The other retailers got on the bandwagon, so now all our clothes come from there. Soon to start coming from India, as China is getting too expensive, because guess what, they want to get paid more money, to enjoy the lifestyle we have. So does their government want more of the action also, understandably, so cost of doing business is going up in China.
When we think of Globalisation, we think of it as a one way street, ie- us getting all the benefits. But it's actually a two way street and we need to realise this very soon. Who are we to say to other countries- No, you can't come here and enjoy our lifestyle. Otherwise we won't have the same lifestyle and my t-shirts, shoes, cameras, undies will go up in price.
Next time you go to do the shopping, don't do it all at the supermarket (The big two are creating a false retail economy, ask the farmers). Go to the butcher, go to the grocer, go everywhere else you can possibly go before getting the last bits at the supermarket. By spending more money at the owner operated specialist stores you help acheive the following things-
Those retailers to maintain a knowledge bank. (otherwise it will be Woolies/Coles who only know butchery, fishmongery, pharmacy, the list goes on)
Those retailers improve their profitability, so they can hold broader product ranges.
Employ staff for more than a 3 hr shift (usually your kids)
Maintain a lively high street for the whole community.
We've already heard from people in another thread about why we shouldn't invest in change for a sustainable future. The above outlines how you can invest in a sustainable future for your community. It boils down to the same philosophy, if you want change then you need to pay for it, somehow.
Scotty72
16-06-2011, 3:39pm
I 99% agree with you. Especially about our modern attitudes to 'them' and trying to stop them from sharing our fortune.
Are we?
The prices for cameras here are about the same as they are in Japan. When you search for a particular model in various countries, US included, the prices are not dissimilar among the B&M stores. There'll always be the anomolies, like B&H, who do extroadinary volume, from a super large store and keen business practices.
After 25 or more years in the retail sector, I have learnt this (inter alia)- Australians want Versace/Armani but they want to buy it at KMart.
We, as a collective, have developed a very strange concept that the price of things should not go up, ever, and if anything, should always be going down. The only way to acheive this is to have things made by nations with less attention to worker/human rights than we do, hence everything made in China. We then decry the loss of industry here. Well if you bought all your clothing from BigW Kmart Target, et al, then you can't blame anyone else. The other retailers got on the bandwagon, so now all our clothes come from there. Soon to start coming from India, as China is getting too expensive, because guess what, they want to get paid more money, to enjoy the lifestyle we have. So does their government want more of the action also, understandably, so cost of doing business is going up in China.
When we think of Globalisation, we think of it as a one way street, ie- us getting all the benefits. But it's actually a two way street and we need to realise this very soon. Who are we to say to other countries- No, you can't come here and enjoy our lifestyle. Otherwise we won't have the same lifestyle and my t-shirts, shoes, cameras, undies will go up in price.
Next time you go to do the shopping, don't do it all at the supermarket (The big two are creating a false retail economy, ask the farmers). Go to the butcher, go to the grocer, go everywhere else you can possibly go before getting the last bits at the supermarket. By spending more money at the owner operated specialist stores you help acheive the following things-
Those retailers to maintain a knowledge bank. (otherwise it will be Woolies/Coles who only know butchery, fishmongery, pharmacy, the list goes on)
Those retailers improve their profitability, so they can hold broader product ranges.
Employ staff for more than a 3 hr shift (usually your kids)
Maintain a lively high street for the whole community.
We've already heard from people in another thread about why we shouldn't invest in change for a sustainable future. The above outlines how you can invest in a sustainable future for your community. It boils down to the same philosophy, if you want change then you need to pay for it, somehow.
colinbm
16-06-2011, 4:23pm
theres a lot of problems this country faces...a couple of good wars should sort it out :eek:
Do you really know what war is ??
Do you really know how hard it was for this country to recover from the last war ??
Would you like to see a war fought in & for this country on our own soil this time ??
I DON"T THINK SO ? Don't even think about it !
Wake up to your self !
Col
Reading is easier, and more convenient, on a Kindle or similar. I love having a real book, but I read a lot more now that I don't have to bother with them any more. Not having to pay the to turn trees into a physical manifestation of a book sweetens the deal. Not having to carry the weight if I am intending to leave the house with it, is also nice. Additionally, it is less awkward to read while laying on my side.
The same goes for music. There is something nice about displaying your collection, but lets face it: CDs look crap anyway, take up space and even if I own the CD I will play it from a hard drive due to convenience. So these days I buy electronic format, and occasionally I might buy something on vinyl if I want to display it. Nothing beats the sound of vinyl, which is actually different to the mp3 sound so I'm not buying it twice just to have it on a shelf.
I hope that neither hurts retail outlets, but I know that they do. It is the future though, the retail sector is going to shrink. Managing the follow-on effect that has on the economy and therefore our lives, is one of the things we employ our government for. :confused013
Back to the topic the original post -- technology --- and the prices we are paying.
A couple of quick questions.
#1 Hands up those who can remember the name of the very prominent Australian retailer who was campaigning on the subject of internet sales killing the local retail sector.
#2 Hands up those who can remember the name of the very prominent Australian retailer who heavily advertised and sold truck loads of modems so that Australians could join the internet and embrace all it had to offer.
Something about having your cake and eating it too springs to mind yet again.
Scotty72
16-06-2011, 4:33pm
... and name the Australian retailer who used its market grunt to squeeze out many smaller retailers but, is now upset when he himself finds others squeezing him :)
colinbm
16-06-2011, 4:48pm
GGGGGGGGGGG.............................Gee I know, Hardly normally go there though :lol:
ricktas
16-06-2011, 5:06pm
Add to that Transport costs to Australia and you're coming close to our pricing.
I'm not saying it's right, but it's the way it is.
Transport costs within Australia too. My family own a large honey production company. We ship tons of Medi-Honey to Germany each year to be used in pharmaceuticals. Shipping costs are about $1.50 AUD from Tasmania to Melbourne per KG, and $0.75AUD from Melbourne to Germany per KG.
colinbm
16-06-2011, 5:08pm
Transport costs within Australia too. My family own a large honey production company. We ship tons of Medi-Honey to Germany each year to be used in pharmaceuticals. Shipping costs are about $1.50 AUD from Tasmania to Melbourne per KG, and $0.75AUD from Melbourne to Germany per KG.
Savage :eek:
Col
We are just finishing our holiday in Japan, while over here we visited the Ginza Apple store and bought a MacBook Pro and a Magic Mouse, we saved around $400 I think from buying it locally.
In all of this has anyone stopped to think about the relative market size??
The US has 250 Million People to our 20 Million, That's just a few more chances to sell said product.
Then add to that, people like me who live in relatively small towns with one retailer offering photographic equipment, why wouldn't Gerry try to charge me as much as possible?
Scotty72
16-06-2011, 7:01pm
Then add to that, people like me who live in relatively small towns with one retailer offering photographic equipment, why wouldn't Gerry try to charge me as much as possible?
That is the beauty of internet shopping, the monopoly retailer now has a competitor to keep him honest.
I really feel my age when I realise that I have grown up to see both the birth and death of a technology. My wife announced on the weekend that she intends to rip all our CDs (that we haven't done already) and then sell or junk the physical media, and also sell the shelving we bought specifically for holding CDs. Neither of us have bought physical CDs for several years now, excepting a couple that we bought to be signed by the artist. My wife has an iPod so all our music is bought online - it's not only more convenient, but cheaper than CDs!
I can see books going this way. Cris has a different idea, but I don't believe you can draw parallels between books and newsprint or radio. I liken newsprint and radio to casual/mobile gaming, whilst books are more akin to hard-core computer games. They're distinctly different markets, with different target demographics and radically different design approaches.
Like casual games that people on the move can pick up and play for a few minutes at a time, there will always be a place for newsprint and radio. I haven't listened to the radio anywhere outside my car for over a decade now. Even in the car it competes with the MP3 player. Just like I occasionally pick up the local rag from the lobby; half the time I flick through it in 5 mins, the other it gets recycled without being opened.
Hard-core games, OTOH, must move with the times or be left on the shelf. If it's not photo-realistic, cinematic sound, 3D real-time FPS or simulation capable of melting your graphics card - forget it. And I also think books need to keep abreast of time as well; not so much in terms of content but how that content is delivered to the reader.
I know several people with Kindles and/or iPads and they freely admit that they'll never go back to paperback novels. Personally, I still prefer books, but I can see the writing on the wall. I don't think Borders' failure had as much to do with being a big brash retailer as shifting trends in how people ingest information (of course, the competition that the internet afforded also contributed). You also need to keep in mind that the upcoming (and future) generations have been born with an iTouch/iPhone/iPad in their hands, get laptops at kindergarten, and seemingly prefer facebook/twitter/text over face-to-face communications even with their friends! Shove a book in their hands and they'll look for the USB jack...
Sorry to wander a little off-topic from the original post, but seeing others' comments got me thinking. Hey, I lost "focus" temporarily there. :p
I don't claim to have any industry knowledge of retail in Australia, but as a consumer it really riles me to see how much more we are charged than overseas, especially since I have recently spent some time living and working in the US.
I understand that you can't always poke a finger at the retailer as such, especially the brick-and-mortar crowd, but how can you blame a consumer that stand to save hundreds, if not thousands of dollars by shopping elsewhere? My Columbia hiking boots cost USD$54 recently (admittedly on sale, but they're only USD$79 normally) - they retail here for AUD$279! And having bought 4 - yes 4!! - pairs of shoes in a Timberland store in Vegas for the price of 1 pair here in Oz, we were told by the sales staff that they get Australian customers who buy from home and have them shipped back - it's *still* cheaper than buying in Australia! Now I dare you to try and tell me that we're not getting ripped off in this particular instance!
My sister was out here from the US last week, with laptop, iPhone, Kindle and iPad. I know for a fact she paid half for the iPod what they cost here, I can only guess her other gadgets were similarly cheaper.
I love the fact that I was born in Australia as much as the next guy, but I simply cannot afford to "Buy Australian" any more - it'll send me broke! :o
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