Australian retail Luddite Gerry Harvey has reversed his anti etailing stance, and has announced that he will launch an online retail store. Harvey had previously been a key agitator against online retailing, leading bigger retailers to lobby the government to enforce Australia's 10 per cent goods and services tax (GST) on all …
Open question to the likes of Gerry Harvey
Why does it cost me less to buy stuff from overseas, then? Even after paying exorbitant freight costs the difference is still more than the GST, Gerry. It's often still better than 30%.
The only things you have to offer me are a peek at the merchandise before paying and immediate delivery. The former is less and less important because every feckin' major store stocks the same feckin' stuff. There is actually very little variety in what is available in this country. The latter is also hit and miss because retailers try to avoid holding stock and rely on their suppliers for just-in-time delivery.
If your cost-of-sales is is more than piecemeal international shipping I'll be very surprised (and also think you are doing something wrong). If you are paying so much more for stock, maybe you should grow a pair and sort out a better deal with your suppliers. Or you might just have to accept lower profit margins now that you have competition.
In short, large retailers have failed their market and it's going elsewhere. I suggest that the likes of Gerry Harvey should shut up shop or just shut up.
You think general retail is bad in Aus?
Try buying motorcycle gear.
Compare these two online retailers, one in Australia, the other a US site
The same product in Australia is more than twice the price with our exchange rate currently slightly over the US dollar!
Not only that, but US buyers get free shipping while poor suffering Aussie buyers have to pay shipping on top of the already outrageous markup.
What a hypocrit
It was the likes of Gerry Harvey, eager to fill their pockets by importing cheap Japanese electronic products that essentially killed off the local electronics industry. Now that the boot is on the other foot he's calling foul. The hypocrisy is astounding.
We're gonna beat ya, We're gonna beat ya
Sorry, the 80's were calling...
A 10% tax for buying stuff online? In the 21st century?! They'll be levelling property taxes based on the number of windows it has next! Or tightening up laws governing the taxation of imported corn...
Not quite correct
It's not a tax on stuff brought on line.
Current Customs regulations waive the collection of Duty and GST on ALL Imports (other than Tobacco and Alcohol) with an FOB value of less than AUD1000.00 (this is a change that came into effect back in February 2005) irrespective of how they are purchased or how they arrive. What Gerry is calling for is for this regulation to be rolled back.
Duty is calculated on the FOB value of the goods whilst GST (flat rate of 10%) is calculated on the FOB value of the goods plus freight and insurance and any duty that is payable.
Harvey is insane
This is the man that thinks charging $1000.00 for products inside Australia that cost $350.00 in the USA is going to be stopped by 10% tax on the USA purchases.
350+35=385 versus 1000 (just teaching Hardly Normal how to do simple maths)
I will take 385 anyday mate.
Australia's retailers have been ripping off Australians for more amounts than any other country for so long they think it is their normal and god given right to.
No wonder locals can start companies like Price USA, buy on behalf of Aussies inside the foreign country, register the products to handle all warranty, repair, and exchanges and circumvent manufacturer lock ins on resellers trying to prevent sales direct to Australia to protect their rip off racket they set up inside Australia. They ship so much they get 65% off the freight costs for their customers and charge 20% of freight as a return shipping gaurantee.
There is a Price Japan too so who will start a Price UK?
Says it all
That it took until 2011 for one of Australia's largest retailers to plan on having an online retailing presence really does say it all about the general contempt the larger retailers in that country have for their customers. High prices and shit service, rock-on.
Just give up Harvey
I hope when he opens the online store he tries to sell things for the same exorbitant prices his crappy stores do. Then he'll have another whinge to government and hopefully close up shop. The days of uneducated Australians getting reamed by these mega stores with huge profit margins is over(thanks internet), either give up Gerry or be happy with 50 million in your pocket, instead of 100 each year you glutton.
Or Gerry has worked out that whining like a child is bad for business, and finally settled on joining them after not being able to beat them.
If Harvey Norman goes into online retailing...
...the result will have slight smell of poo about it.