Jump to content
Sign in to follow this  
sweepa

retailers form yet another lobby group to push for increased taxes on on-line goods.

Recommended Posts

It's pretty sad when progress is held back.

what do you mean?

 

I mean that the internet, global markets, unimpeded competition, and the advantages that this system gives is being held back by dinosaur business practices that refuse to adapt to the modern world.

 

The advantage of the internet is not just to the consumer with cheaper prices, it's going to have massive knock on effects:

 

1. Cheaper prices mean more individual goods purchased. Meaning more money to the people ACTUALLY CREATING THE GOODS, rather than useless middle men, and useless sales staff. This means, quicker progress in whatever the technology is. e.g. computers, tvs, phones, etc.

2. Consumers have greater power and influence over what goods are successful, and more importantly, small time goods can be more successful this way, leading to new innovations getting the recognition they deserve.

3. Transport - the huge volumes of posted goods are going to drive innovation in the transport sector, better and more economical ways of transporting large volumes of goods around the world.

Share this post


Link to post
Share on other sites

I think this tired old argument that killing retail will kill the economy is rubbish.

The economy benefits from money circulating or coming into the economy.

 

Money leaving the economy will make it shrink and cause negative growth, which causes the economy to fall over.

 

With retail, the customer pays $100 for a product, $50 goes to the retailer and the (incredibly inefficient) supply chain, then $50 goes overseas to pay for the product from the maker.

 

With online shopping the customer pays $50 to buy the product from overseas.

 

The same amount of money leaves our shores, only the customer doesn't pay to support the bloated over unionized workforce of the supplier. The customer retains $50 that they can spend on something else, keeping the economy going anyway.

Retail is out dated, and just like many other industries before it there will be a reduction. Boo f**king hoo.

Move with the times or die off.

Edited by Chappy

Share this post


Link to post
Share on other sites

Seems relevant.

 

Share this post


Link to post
Share on other sites

What other service can you offer in a clothing store? Keeping in mind money is tight because the operating margin is low as f**k.

 

There is no competitive advantage on some goods, most retail is just whats in stock at the right price. People talk of service, but the idea of service is having someone there behind the counter smiling - what else can we expect. Ive been to plenty of stores where the service at least equals that of shopping online (nothing)

 

Bricks and mortar have nothing to offer. The cost associated with running is huge so they will always lose on price. The service isnt there as they dont have money to pay staff so they take unskilled retards who just have to work as part of the dole scheme, inventory will be next to nill as they dont have the cash to spend on holding stock that doesnt sell.

 

Not disagreeing with anyone's posts in here, just going to be shocking when a huge chunk of the market changes - while the consumer wins i don't think the economy will

 

Interesting post above about courier companies popping up. could be a real growth industry, just hope it doesnt turn into a duopoly like our current grocery market. I wonder if a massive courier industry will take the place of the retail market?

 

The capitalist economy works on the basis that i pay you for a service i cannot (or don't want to) do myself.

Before online shopping the only way i could get an item was to go to a retailer, your service was valuable to me and i paid for it.

With the internet i am capable of doing for myself the service that you the retailer once did for me, for less.

Much like i choose to service my own car than take it to a mechanic who will rip me off, i choose to function as my own supply chain rather than pay you do do it for me.

 

Are you going to tell me that i am killing the mechanic by servicing my own car?

 

I don't need your service, so why should i pay for it?

It doesn't matter what happens to the economy, people will not pay for something they do not want/need.

 

If you want to help your situation you should disconnect yourself from the supply chain. Rather than fattening the pockets of the greedy wholesalers you get your clothes from, source them yourself over the internet to sell in your store.

And i know what you are going to say: "i am not allowed to sell my brands in Australia without going through my supplier"

Boo f**king hoo, find some different overseas brands that are not monopolistic c.unts and you will do the retail world a favor by showing the other stores that you can operate without grovelling to the beast.

The problem with retail is not the retailer, it is the supplier.

If you continue to work with the supplier you will go down with them.

 

Until the supplier is hit in the hip pocket, they will not change their ways. The only way the customer can do this is to not buy from the retailers that stock these ripoff items. You can do your bit too.

Edited by Chappy

Share this post


Link to post
Share on other sites

Thanks Chappy, reinforcing everything ive said. Everyone talking about not getting service at stores as an excuse for not buying from them can pretty much rule that out. It is something not needed at all and if that is the only competitive advantage a store front offers then they have no chance.

 

Ill clarify again, not saying we shouldn't buy online, will just hate to see what happens when some of the retailers start disappearing and the knock on effect to the economy and perhaps the job that you currently sit in?

Share this post


Link to post
Share on other sites

Another good one. Went to the shops today to shop around for a cover for my S3.

Stupid rubber ones cost $15. Leather cases are chasing $30.

 

eBay - $8.99 delivered.

 

Same case, same quality, same build, same color. Cheaper. WHY THE HELL NOT.

Share this post


Link to post
Share on other sites

Cos you beach the duty of care and you will get sued. by loyers!

Share this post


Link to post
Share on other sites

Ill clarify again, not saying we shouldn't buy online, will just hate to see what happens when some of the retailers start disappearing and the knock on effect to the economy and perhaps the job that you currently sit in?

 

I am going to focus purely on this line this time, because it seems to be the one part that you keep glazing over and ignoring.

 

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

 

You are not bringing money into our economy because you do not create anything to be sold overseas. Retail is a carrier nothing more, you bring the product to the customer to purchase. The same amount of money will leave our shores as did when retailers held the power.

The part time mothers, under paid students and unskilled lifers that currently work in the retail industry will hardly make a dent in the money filtering back into our economy because they have been so badly squeezed in pay for decades. These same people can go work in sales call centers, customer service call centers or simply fill out the ranks of the expanding postal and courier services that need to grow to meet the demands of online shopping.

As one industry shrinks, another grows in its place.

 

There will be no dooms day to our economy, the only people who are claiming there will be are those with a vested interest in retail.

 

Did we have an armageddon when commercial radio shrunk to accommodate television?

Did our economy collapse when the Equestrian industry was squashed out in favor of Automobiles?

Did everybody lose their jobs when cruise ships were replaced by aeroplanes?

 

No.

 

Stop peddling your bullshit.

Share this post


Link to post
Share on other sites

Ill clarify again, not saying we shouldn't buy online, will just hate to see what happens when some of the retailers start disappearing and the knock on effect to the economy and perhaps the job that you currently sit in?

 

I am going to focus purely on this line this time, because it seems to be the one part that you keep glazing over and ignoring.

 

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

 

You are not bringing money into our economy because you do not create anything to be sold overseas. Retail is a carrier nothing more, you bring the product to the customer to purchase. The same amount of money will leave our shores as did when retailers held the power.

The part time mothers, under paid students and unskilled lifers that currently work in the retail industry will hardly make a dent in the money filtering back into our economy because they have been so badly squeezed in pay for decades. These same people can go work in sales call centers, customer service call centers or simply fill out the ranks of the expanding postal and courier services that need to grow to meet the demands of online shopping.

As one industry shrinks, another grows in its place.

 

There will be no dooms day to our economy, the only people who are claiming there will be are those with a vested interest in retail.

 

Did we have an armageddon when commercial radio shrunk to accommodate television?

Did our economy collapse when the Equestrian industry was squashed out in favor of Automobiles?

Did everybody lose their jobs when cruise ships were replaced by aeroplanes?

 

No.

 

Stop peddling your bullshit.

 

2 of the 3 jobs you listed there are in the process of getting outsourced overseas as well.. there are about 23 million people in australia, and about 1 million of them work in retail.. surely you arent suggesting that australia post or whatever is going to open up 1 million new positions, or ever a tenth of that.. what are the other 900 thousand people going to do??

 

im not completely disagreeing with your point, but comments like

 

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

 

is pretty close minded if you ask me.. almost 4 percent of the current Australian population works in retail in one way or another, suggesting that other job opportunities are going to open up to replace the one million that are lost is pretty optimistic, considering that so many other professions are currently being outsourced at the moment..

Share this post


Link to post
Share on other sites

Well, the idea is to have innovation, the creation of new and better industries.

 

It's the luddites all over again. One outdated industry with a HUGE workforce gets squeezed out, a lot of people complain, but society makes progress, new industries, technologies, and jobs are created out of necessity, and everybody benefits.

 

If we try and hold back the rest of the world will pass us by and when we do eventually have to let go of a dying industry it will hit us all the harder.

 

 

I would like to see the massive retail complexes in every suburb gone. It would be much smarter to have a single boutique showroom store say in each major city. You check out the gear in the showroom if you want to touch it. It's simply no longer necessary to have massive westfield shopping malls these days.

Share this post


Link to post
Share on other sites

Its not just the retail you see its the background.

 

Lets say Total Tools close down because everyone buys their Drills online. You've lost not just the physical stores and staff tied to that company but also the Tool companies that sell to it. Gone are Account Managers, Marketing, Customer Service, Service centre, logistics, warehousing. Without the multiple outlets there is less requirement for human capital not just within the retail outlet but everyone effected by its closure. If you buy from overseas that comes out of another departments budget - yes that department will grow but not with local jobs. Jobs may appear overseas, but not here. I think we all know the state of our talent loss to overseas.

 

Retail is not a closed loop, while only 1 million untrained staff rely on it, its the business', the suppliers that sell through that will have the hard time.

 

You need to think of how many companies operate within Australia that risk closing down because their channel doesn't exist. While yes, the brand remains, the local contingent has no use. Thats a hell of a lot more people than 1 million. How many suppliers from Total Tools do you think there are, 1000? How many people do those 1000 suppliers employ, how many of them wont be needed if their channel closes? Thats not a number taken into account during these discussions.

 

While,

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

may hold some water, its an industry, an industry with many components, not just the shop floor.

 

Think beyond your immediate self and what you know, think bigger and think of how that trails down to your job. Any effect on any sized industry is felt through a population of 23million

Share this post


Link to post
Share on other sites

Close large retail stores/ shopping centres and turn the buildings into frat-type accomodation for uni students. Alpha Gamma Myer?

Share this post


Link to post
Share on other sites

2 of the 3 jobs you listed there are in the process of getting outsourced overseas as well.. there are about 23 million people in australia, and about 1 million of them work in retail.. surely you arent suggesting that australia post or whatever is going to open up 1 million new positions, or ever a tenth of that.. what are the other 900 thousand people going to do??

 

im not completely disagreeing with your point, but comments like

 

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

 

is pretty close minded if you ask me.. almost 4 percent of the current Australian population works in retail in one way or another, suggesting that other job opportunities are going to open up to replace the one million that are lost is pretty optimistic, considering that so many other professions are currently being outsourced at the moment..

 

You are assuming that the retail sector will completely disappear. Much like many other surpassed industries before it, retail will merely shrink.

The only retail chains that are likely to die off are the ones that fail to get with the times.

 

You are also forgetting the internet based retailers based in Australia that are going to need staff.

 

 

Its not just the retail you see its the background.

 

Lets say Total Tools close down because everyone buys their Drills online. You've lost not just the physical stores and staff tied to that company but also the Tool companies that sell to it. Gone are Account Managers, Marketing, Customer Service, Service centre, logistics, warehousing. Without the multiple outlets there is less requirement for human capital not just within the retail outlet but everyone effected by its closure. If you buy from overseas that comes out of another departments budget - yes that department will grow but not with local jobs. Jobs may appear overseas, but not here. I think we all know the state of our talent loss to overseas.

 

Retail is not a closed loop, while only 1 million untrained staff rely on it, its the business', the suppliers that sell through that will have the hard time.

 

You need to think of how many companies operate within Australia that risk closing down because their channel doesn't exist. While yes, the brand remains, the local contingent has no use. Thats a hell of a lot more people than 1 million. How many suppliers from Total Tools do you think there are, 1000? How many people do those 1000 suppliers employ, how many of them wont be needed if their channel closes? Thats not a number taken into account during these discussions.

 

While,

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

may hold some water, its an industry, an industry with many components, not just the shop floor.

 

Think beyond your immediate self and what you know, think bigger and think of how that trails down to your job. Any effect on any sized industry is felt through a population of 23million

 

If Total Tools fails to get with the times, then that is their own fault.

The market does what the market does, and no amount of moral blackmail or doomsday prophecies will stop it from happening. I mentioned 3 big industries in my previous post to you that all had to undergo a similar transition as the market changed, and guess what, our economy is still kicking!

 

The whole supply chain for Total Tools does not need to shut down, just the retail component. If they were to centralize their manufacturing and distribution operation with an online store, they would do quite well for themselves.

 

You are also missing the big point here that online shoppers did not start the outsourcing of manufacturing jobs.

Through the 80's and 90's retailers (yes retailers) started killing off our local manufacturers by sourcing their stock from overseas sellers.

They killed off local companies by cutting them out of the supply chain in favoor of cheaper deals overseas.

Now the customer is cutting the retailer out of the supply chain by going straight to the supplier overseas, and you want to claim some kind of moral superiority?

 

The killing off of local companies when retailers did it, was a gradual process and our economy adapted to the change quite happily.

To assume that the same won't happen this time is ignorant, and to preach that it should not happen is hypocritical.

Edited by Chappy

Share this post


Link to post
Share on other sites

Its not just the retail you see its the background.

 

Lets say Total Tools close down because everyone buys their Drills online. You've lost not just the physical stores and staff tied to that company but also the Tool companies that sell to it. Gone are Account Managers, Marketing, Customer Service, Service centre, logistics, warehousing. Without the multiple outlets there is less requirement for human capital not just within the retail outlet but everyone effected by its closure. If you buy from overseas that comes out of another departments budget - yes that department will grow but not with local jobs. Jobs may appear overseas, but not here. I think we all know the state of our talent loss to overseas.

 

Retail is not a closed loop, while only 1 million untrained staff rely on it, its the business', the suppliers that sell through that will have the hard time.

 

You need to think of how many companies operate within Australia that risk closing down because their channel doesn't exist. While yes, the brand remains, the local contingent has no use. Thats a hell of a lot more people than 1 million. How many suppliers from Total Tools do you think there are, 1000? How many people do those 1000 suppliers employ, how many of them wont be needed if their channel closes? Thats not a number taken into account during these discussions.

 

While,

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

may hold some water, its an industry, an industry with many components, not just the shop floor.

 

Think beyond your immediate self and what you know, think bigger and think of how that trails down to your job. Any effect on any sized industry is felt through a population of 23million

 

while this is true, the same arguments apply. We shouldn't protect dying industries. We should take this opportunity either to take advantage of the new internet market, or, to innovate and create new business models. Like you said, most of these businesses are either no-skill or low-skill work. We shouldn't want this work. Great economies are built of innovation and creation.

Share this post


Link to post
Share on other sites

I dont hink you guys realise what it costs to run a shop as apposed to an online shop.

a shop can cost you thousands to run a week, a online shop from your mums basement is free maybe 50 bucks for domain name and hosting a month

they can afford to sell shirts for 2 bucks profit each one cause they will sell hundreds, a shop needs to make 10-20 bucks off a shirt to cover costs.

if you have never been in charge of a shop then you have no idea what your talking about with comments like "why should i buy from a shop for 50% more when online is cheaper"

 

And I don't think you know me, so don't assume I don't know what it costs to run a shop. I'm well aware of what it costs to run a shop. Don't start blaming everyone else because you suck at business. It you don't know how to source cheaper product/manufacturing, negotiate better deals, develop more efficient procedures to maximize productivity or develop a brand and market yourself better, that's your problem! Not the internet, not your competitors and certainly not consumers.

 

Furthermore you obviously have know clue given your comments about the costs of on-line retail. What, you think the products they sell just materialize out of thin air? Just like any bricks and mortar business they have things like minimum purchasing orders, they need somewhere to warehouse stock, they need people to keep the website up and running, they need customer service people to answer inquiries, people to process and dispatch orders, book-keeping, marketing etc etc. Running a successful on-line business is really no different to running a traditional bricks and mortar business for the most part. They just have more efficient possesses that allow them to be far more productive while reducing waste.

 

http://youtu.be/QICzxqZ3s10

 

crap vid but it gets the point accross

 

 

 

Thanks Chappy, reinforcing everything ive said. Everyone talking about not getting service at stores as an excuse for not buying from them can pretty much rule that out. It is something not needed at all and if that is the only competitive advantage a store front offers then they have no chance.

 

Ill clarify again, not saying we shouldn't buy online, will just hate to see what happens when some of the retailers start disappearing and the knock on effect to the economy and perhaps the job that you currently sit in?

 

..........

 

 

Its not just the retail you see its the background.

 

Lets say Total Tools close down because everyone buys their Drills online. You've lost not just the physical stores and staff tied to that company but also the Tool companies that sell to it. Gone are Account Managers, Marketing, Customer Service, Service centre, logistics, warehousing. Without the multiple outlets there is less requirement for human capital not just within the retail outlet but everyone effected by its closure. If you buy from overseas that comes out of another departments budget - yes that department will grow but not with local jobs. Jobs may appear overseas, but not here. I think we all know the state of our talent loss to overseas.

 

Retail is not a closed loop, while only 1 million untrained staff rely on it, its the business', the suppliers that sell through that will have the hard time.

 

You need to think of how many companies operate within Australia that risk closing down because their channel doesn't exist. While yes, the brand remains, the local contingent has no use. Thats a hell of a lot more people than 1 million. How many suppliers from Total Tools do you think there are, 1000? How many people do those 1000 suppliers employ, how many of them wont be needed if their channel closes? Thats not a number taken into account during these discussions.

 

While,

RETAILERS BRING NOTHING TO OUR ECONOMY, SO OUR ECONOMY WILL LOSE NOTHING WHEN THEY ARE GONE

may hold some water, its an industry, an industry with many components, not just the shop floor.

 

Think beyond your immediate self and what you know, think bigger and think of how that trails down to your job. Any effect on any sized industry is felt through a population of 23million

 

Retail is not going anywhere. people still need goods and they still need people to supply them with those goods. The only thing that will change is the shop fronts.

 

As I said above even on-line retailers still need people to serve customers, process and dispatch orders, market their brand, deliver goods, do book-keeping etc etc. There are still real people in real jobs behind the scenes. An example of this is recently Woolworths started offering on-line shopping near where I live and the store near me just hired 20 new people to fulfill orders.

 

Big retailers are up in arms protesting this not because they're afraid the internet is going to kill retail, but because they are heavily invested in dated business models that become less valuable everyday and they want to return back to 'the good old days' where they were able to monopolize the market.

 

Many smaller retailers are afraid of change because many lack the business skills and knowledge to adapt, but really they shouldn't be, things like the internet, outsourcing and automation open up a world of opportunities. As another example, a client/friend of mine who owns a small transmission workshop was getting murdered by his suppliers. So I helped him source products and manufacturing to his specification out of Asia (1st shipment of parts should be here late next week in fact), One of the sources we found actually supplies his previous suppliers. This has opened up the opportunity for him to move into the distribution game himself and/or develop his own line of products under his own brand that he'll be able to sell on a national or potentially even international level.

 

As others have said what Australia need to do is focus on investing in innovation, we need to create more. Not put in place a bunch of stupid protectionist laws designed to take us back to the 1950's and protect the business interests of large retailers allowing them to maintain there monopoly on the retail sector.

Edited by sweepa

Share this post


Link to post
Share on other sites

As others have said what Australia need to do is focus on investing in innovation, we need to create more. Not put in place a bunch of stupid protectionist laws designed to take us back to the 1950's and protect the business interests of large retailers allowing them to maintain there monopoly on the retail sector.

 

shizbam.

Share this post


Link to post
Share on other sites

While I love cheap online products, guys we can't have our cake and eat it too.

 

The simple fact is the retail industry is a major part of Australia's economy and it is hurting, hurting bad. Now there are three ways to fix it.

 

Lower Taxes - Will lower the price of goods, but then don't bitch and moan when things like private health care become mandatory, Roads get worse than they already are, Our health care system and school system get worse than they already are like how poor they are in the USA.

 

Lowering of wages - That means you too, everyone gets a pay cut in order to slow inflation and essentially deflate the dollar and bring back more value in it.

 

Tax Online goods - To create a level playing field. This is the most socialist of the solutions but Austarlians like their free Hospitals and their 40-50k for Shit jobs. I mean I have a mate who is a freaking Roofer and another one who is a concreter and both of them are on almost 100k. 100K!!!!!! to pour cement youre out of your f**king mind.

Edited by Shakey Bones

Share this post


Link to post
Share on other sites

While I love cheap online products, guys we can't have our cake and eat it too.

 

The simple fact is the retail industry is a major part of Australia's economy and it is hurting, hurting bad. Now there are three ways to fix it.

 

Lower Taxes - Will lower the price of goods, but then don't bitch and moan when things like private health care become mandatory, Roads get worse than they already are, Our health care system and school system get worse than they already are like how poor they are in the USA.

 

Lowering of wages - That means you too, everyone gets a pay cut in order to slow inflation and essentially deflate the dollar and bring back more value in it.

 

Tax Online goods - To create a level playing field. This is the most socialist of the solutions but Austarlians like their free Hospitals and their 40-50k for Shit jobs. I mean I have a mate who is a freaking Roofer and another one who is a concreter and both of them are on almost 100k. 100K!!!!!! to pour cement your out of your f**king mind.

 

What difference will lowering the threshold make?

It won't stop people from buying overseas goods because the prices are way cheaper than a mere 10%.

It won't increase tax revenue because the cost incurred by increasing customs staff to cope with the extra workload will negate the extra money made.

And how do you police the threshold? Many of my favourite online sellers have an option at the checkout for you to tell them how much to put on the customs declaration.

Good luck trying to prove the prices on the declaration are not legit.

Edited by Chappy

Share this post


Link to post
Share on other sites

Good points have been raised, so I'll throw some real figures into the mix.

 

A number of years ago my old man collaborated with some people he knew in a side business venture. The product was a type of garden pot hanger designed for colorbond fences, and it was very innovative, with absolutely nothing on the market [internationally] that did the same thing in the same way. The shape was complicated, but effectively it was just a bent bar - a simple, clean and elegant solution.

 

Every part of the product, design, construction and manufacturing was done in Australia, using materials sourced from Australia. They had to pay more than $30,000 up front for ink and bending jigs, the distributer added 20% markup, and the major retailers added their markup, with Bunnings' usual markup being something in the range of 400%, albeit I think they got a little less applied. As if this wasn't bad enough, they weren't allowed to sell direct to retail outlets as it would be in breach of the outlets contracts with their distributers, and you had to wait 6 months to be paid, irrespective of whether or not they sold all the goods and ordered a bunch more.

 

The end result was that it cost $5 to make the final packaged product, the business added their margin of a measly $2, the distributer added around $2 themselves for doing effectively nothing, then the retailer packed in their profit margins. After a lot of work they were able to streamline their manufacturing process to shave cost, then cut their own profit margin by about half, negotiate a lot, and FINALLY got it into Bunnings and similar for around $20. Absolute f**king joke.

 

The funny thing is that because Bunnings make no effort to advertise small business products, they really didn't sell all that well there, so ultimately they ditched the retailers and one of the guys would travel to all different garden expos and sell them there. Made way more profit, and sold more. Once the retailers noticed they were a proven seller, they wanted a slice of the action again and requested orders, but their retarded conditions remained and they were rejected. Later Australia introduced water restrictions and it effectively killed the product as well as many others.

 

So when selling retail, a product that cost under $7 total sold for around $20 in shops, the party who did the least work (distributer) made more than the party who had the greatest workload and financial burden (creator), and the retailer made nearly 3 times the margin of everyone else involved, despite doing nothing and causing bad sales.

 

When sold direct to the public, the creator/inovator made 3 times the margin, the public paid significantly less and subsequently bought more, and all of the money stayed in the economy. The retailer and distributer added ZERO to the experience, and there was no economic impact due to the public buying multiple products, subsequently spending more.

Share this post


Link to post
Share on other sites

And just imagine how well he would do if he made an online store of his own and started advertising his product online?

Share this post


Link to post
Share on other sites

And just imagine how well he would do if he made an online store of his own and started advertising his product online?

 

Exactly. This was quite a few ears ago, prior to online sales having the reach they now have. These days it would be straight on eBay.

Share this post


Link to post
Share on other sites

The number one reason you have a better experience shopping on line than retail is customer service, and that is primarily because during your whole transaction, you dont have to interact with anyone working in the store.

 

The single biggest advantage to a retail outlet is having what you want, and having it ready to go. If I walk into your store and you tell me you dont have it but can order it, too bad, I will order it myself from the internet, probably cheaper.

 

but there is a special thing about being able to see and touch what you want NOW, and take it home then and there. retailers really need to identify that and keep shit people want IN STOCK in all sizes and colours and the sales will always be there.

 

So many times I needed parts for my RC car while I was out using it, and they say 'oh, its out of stock but we can order it for you! (and we wont submit your order until we get at least 10 orders for the same thing to get a price break, and then if the distributor hasnt got it they will wait til they get 200 orders for it so they get THEIR price break, and then you will have probably been able to get it cheaper, easier, and faster from literally anywhere else online).

 

I am happy and willing to pay retail prices for stuff I can buy and receive immediately. if you tell me you can order it, f**k that, I can order it, and cheaper. if Im gonna wait, Im not going to wait on YOU to get your bulk discount.

 

applies to music stuff too, and I mentioned this in the billy hyde/allans music thread - musicians are going to walk in before a gig and need stuff NOW - straps, strings, picks, leads etc. having it on back order is not helping them NOW, its not even going to help them next week when you can get it (probably wont). the amount of times I walked in there to get something basic and common (strap locks, regular gauge 4 string bass ernie balls, picks, or leads) and they didnt have it....WHY? You could have just sold me a $25 accessory which is likely marked up 300%, but you didnt have it, so now Im buying it for 50% less and its still going to arrive before yours does, direct to my desk at work.

 

then you get other stores which bring the power of their online store into their retail outlet, like basscentre in melb. I had seen their online store a lot, then I went there while in melbourne on tour and the prices were the same as online, and the service amazing - even spent 30min on the phone for me to get info about my out-of-warranty amp that I didnt buy from them.

 

a lot of the customer service problems I believe stem from people getting into a market to make money, rather than because its their passion. music stores like billy hydes is a prime example - the low level staff are usually musicians or home studio guys, but the management and owners are usually business minded people that see 'the market' instead of 'the customers'. they dont give a shit about keeping the customers happy, they give a shit about exploiting a profitable market. You go to a privately operated store like bass centre and the guys are genuinely passionate about the products they sell and know more than there is to know about it. they dont care if you want to come in and just talk or jam out, because thats what makes people come back and spend money. they have their finger on the pulse of the scene by virtue of wanting to be a part of the scene and having a personal interest in it rather than just to make money.

 

honestly i feel like in 15-20 years retail will be gone as it is today and you will find a whole lot of boutique style stores owned and operated by enthusiasts FOR enthusiasts. franchising is dead as a business model in the retail sector.

Share this post


Link to post
Share on other sites
franchising is dead as a business model in the retail sector.

Not quite yet, but good f**king riddance when it is.

Share this post


Link to post
Share on other sites

What was the volume difference between Bunnings and 1 man band?

 

Honestly, it was a long time ago so I really don't remember any numbers. I would guess based on my memory that it would have been a 1:10 ratio in favour of the expos, although it could have been higher. When you consider the higher income margin it would have been more like 30:1. It's really not surprising since major outlets like Bunnings only position goods in reasonable locations when they make a massive profit ratio on them. I knew exactly what the hangers looked like and I couldn't even find them; had to be shown where they were.

 

I recall they also got them into a small garden chain called Flower Power or something like that, and they sold better there. They were able to set up display stands for the shops and it made a big difference. The shop's margins were smaller too.

 

But retail is like that, and it's one of the reason why the sales staff are often so useless. Turnover vs Cash Flow vs Profit. It's better to sell a cheap $200 TV that you make $30 profit on, than a $3000 TV that you make $20 profit on. Your turnover is lower, but the cashflow isn't as bad and the profit higher.

Share this post


Link to post
Share on other sites

My old man worked as a sales rep at a few jobs in th building industry, and later, agricultural. One of his major clients was you guessed it, Bunnings.

 

With one company, they'd say "We want these product lines in all colours and variants, enough to fill 3 bays, and this is what we're expecting to pay for them". He'd have to compete with 5 or 6 other competing brands not only on pricing, but on being able to display the brand.

 

With another company, similar stunt, except his work churned out an alternative name and branding for the same products exclusive to Bunnings, just so they'd have a better grasp on the market through dealing direct with customers, expos field days, and other smaller retailers.

Share this post


Link to post
Share on other sites
but then where would all the emo's' and ulehs hang out????

 

Still got Flinders station, and the kebab shops/maccas

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

Sign in to follow this  

×