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Ratsh%t Retailing


Riley

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Service, Quality, Price. - pick 2 because you can't have all three !!!

Well isn't that interesting. Just about every ad for every retail business spruiks that they provide all three.

 

And BTW, we customers have as many horror stories about retailers as you do about customers. The difference is, we CAN shop elsewhere if we're badly treated and we DO. It's the golden rule, He with the gold, makes the rules and as customers, we're the ones with the gold.

 

 

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Retailers not keeping stock, DRIVES people to the internet.

 

They become simply a order and pick up point, with a sizable mark up.

 

I was chasing Shell Ultra motorcycle oil and called a few local shell stockists from the Shell "locator" guide online.

 

None had it, but could order it in....... Just ordered it off the net myself......Yeah, it may not be something that "moves" but not even one container?

 

Retail shopping is convenience shopping and a higher price is expected, but they do themselves no favours by not keeping stock. It defies the whole point of retail.

 

Old school retail businesses think they're smart by not keeping stock (dead money) but are oblivious to the consequences.

 

 

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Well isn't that interesting. Just about every ad for every retail business spruiks that they provide all three.And BTW, we customers have as many horror stories about retailers as you do about customers. The difference is, we CAN shop elsewhere if we're badly treated and we DO. It's the golden rule, He with the gold, makes the rules and as customers, we're the ones with the gold.

Of course you can shop wherever you like and myself as a consumer do the same.

 

The point I was trying to make is that if you as a customer want good service and a quality product expect to PAY for it. Or you can buy a cheap product, good quality but little or no service. That because the low price doesn't allow the seller enough margin to provide it. So, if you don't expect any after sales service, go for it !

 

Stop seeing the retailer as an enemy to be taken down . Another OLD chestnut is "business is only good business if it's good for both parties"

 

Unless the retailer is a complete moron they all strive for repeat business as it's easier and less costly to retain a customer than to find a new one !

 

 

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Retailers not keeping stock, DRIVES people to the internet.They become simply a order and pick up point, with a sizable mark up.

I was chasing Shell Ultra motorcycle oil and called a few local shell stockists from the Shell "locator" guide online.

 

None had it, but could order it in....... Just ordered it off the net myself......Yeah, it may not be something that "moves" but not even one container?

 

Retail shopping is convenience shopping and a higher price is expected, but they do themselves no favours by not keeping stock. It defies the whole point of retail.

 

Old school retail businesses think they're smart by not keeping stock (dead money) but are oblivious to the consequences.

Stock is NOT dead money unless of course it only turns over every 6 months or so. Even then it still has a value.

 

By old school do you mean a business that has a shop front rather than an online presence only ?

 

 

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Stock is NOT dead money unless of course it only turns over every 6 months or so. Even then it still has a value.By old school do you mean a business that has a shop front rather than an online presence only ?

No, I think he means businesses that are oriented towards what they do rather than how much profit they make.

When I was growing up, shoe companies strived to make better shoes, now they strive to make more profitable shoes. There's a world of difference between the two.

 

 

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People laugh at me when I talk about sacking customers. But I do it. It is just a part of business. You build it up until it starts to become unmanageable, then you go through and cull the high maintenance or slow paying customers. Or you do it as you go. Pick up a new customer and he turns out to be a slow payer just pass him on to someone else.

 

Don't get me wrong, all customers are good and valuable but some simply do not fit into a business plan at certain times.

 

The other thing I find is when cold callers ring me for a quote I will normally be to dear for them. I am to small to compete on price my edge is service so those who are shopping for the best price will not find my business attractive.

 

One of my best customers is one of my smallest. He is however positioned to pass on a lot of work. My two biggest customer came via word of mouth from the little guy. So my motto is no-one is to small to serve so long as each job they request fit into a reasonable return for effort.

 

Lets face it I love trucks, I love driving but at the end of the day I am only doing it for the returns I get. Both satifaction and financial. So if a job doesn't pay or provide some other benefit than It is not for me.

 

 

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All the mandated warranty and liability we love as consumers here in Aus costs plenty.

 

If you import it and sell it on and are ultimately responsible for all warranty even that of manufacturer.

 

Also customer can claim consequential damages if your products failure caused it or it is judged not fit for purpose.

 

This means either dopey retailers dont cover themselves......grey imports etc. cheap and risky, work from OS base, or they carry heavy product insurance and that goes on your price.

 

All not relevant if customer is a company or value is over $40k

 

 

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As far as not seling direct, distributors, the ones who import, sell generally with low margin and wont undercut their agency networks. So the directprice you get from distibutor isnt the price they sell to agent for but elevated so you will go to the place that can support small cash sales.

 

If you are not a registered and credit approved customer they have none of the insurance mentioned earlier

 

Importers mostly have no staff or systems for chasing money or small sales

 

 

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My recent experiences are that the distributors are the ones whacking on the margins, and in these tougher economic times, the re-sellers are taking the cuts.

EXACTLY...many of yhe things I can get from distributors are at the same price as getting them myself as a consumer from the US.

 

 

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Yep, often supplier in US doesnt charge any less to distributor and they have to pay GST and insurance for consumer protection here.

 

Ian if you are reselling it here you are in for trouble if you ever have a serious warranty/damages claim. US supplier will walk away from warranty faster than you can imagine if its more than product replacement.

 

Local distributors wouldnt be in business long if they just ripped people off, not saying it doesnt happen.

 

 

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No i didnt say i was reselling but the point i was making is that if a retailer buys something from a distributor here in Australia and then puts a margin on top to cover their costs the consumer can buy cheaper from the US.

 

However, distributors here do buy cheaper, put their 35%+ on top which makes it the same price as the US which blows the retailer out of the equation when they put their margin on and don't forget the GST. This is why consumers are buying from overseas and retailing is dieing

 

 

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If they are actually doing that, wont they go out of business? If the customer can buy direct why cant retailer?

 

GST is added no matter what often not paid by direct OS purchases but not for much longer.

 

 

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GST is added no matter what often not paid by direct OS purchases but not for much longer.

jetjr, do you know how the GST is going to be collected on overseas purchases of less than the current 1K?

Will Customs send an invoice for every parcel arriving from overseas? Hardly worth it for say $2 on a $20 dollar purchase.

 

I buy very little on line but can't see this working on small amounts??

 

 

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I heard that Aust Post will be collecting it so you will hv to go to your post office to collect and pay gst on your overseas order...could be wrong but just what I have heard

 

 

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no the model I heard was the [foreign] retailer charges it on purchase. apparently 50 companies are responsible for 50% of online purchases

 

google

 

appple

 

amazon

 

ebay

 

netflix

 

would be a big chunk of GST collected at no cost to the taxpayer

 

http://www.smh.com.au/federal-politics/political-news/gst-set-to-apply-to-all-imports-into-australia-from-july-2017-20150821-gj4vg7.html

 

 

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Ha, "taxation officials traveling the world asking them to register for gst"......like that means something to a FOREIGN sme.

 

How many will give them the finger......

 

OS companies will probably use it as a marketing tool, advertising no gst.

 

I'm not particularly talking about the big companies mentioned.

 

The already know they pay no effective tax, so will do what the taxation dept wants to maintain the status quo.

 

I can already see some perverse setup where the government PAYS overseas comanys to collect the tax....

 

 

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If the US govt asked me to start enforcing, collecting and administering thier tax....id tell them where to stick it...just like they will to us...That wont be happening anytime soon...

 

It will have to be administered in Australia

 

 

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Every parcel already has value claim on it, suggest you wont be able to collect it until paid. Goods sit in customs.

 

Get caught cheating and theres huge fine

 

Just like purchases over $1K now

 

If big stores want to they can charge and handle VAT like they do for internal state taxes currently. People will shop there rather than the whole delay at border circus

 

 

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I don't think it's feasible to do it at customs. What, you're going to buy something for $25 from Hong Kong, but Customs is going to pay the administration and warehousing costs until the customer fronts up with the extra $2.50? The only alternative is to charge another handling fee so your $25 item now costs $75 before you can pick it up. Don't think the punters will go for that one.

 

As FT says the only way to do it is seek co-operation with the big firms. If they got Netflix and Amazon alone to do it (and it wouldn't be hard for them, they probably have to apply a dozen different US state taxes anyway), that'd be a huge GST windfall.

 

 

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