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Harvey Norman launches online game-seller site

Messages
33,280
Exactly what it is, and I support it 100%.

My livelihood is affected by this same issue of GST free imports, so anything that can be done to have International sellers (who dont employ your family, or neighbours) sell products for similar prices to those on bricks and mortar shops.

Have you ever imported a large quantity of good to sell in a retail store?

The import duties and taxes are generally higher than the invoice price of the items.

All of a sudden it's going to make Ozgameshop double their prices and be on par with Harvey Norman, EB, game etc...? :lol:

Australian retailers have been ripping off the consumer for far too long.
 

Munky

Coach
Messages
12,317
One would imagine that it is the cost of rent and labour that is killing bricks and mortar retailers not international online sellers. Rent in Pitt Street Mall is higher than the Champs Elleysees!

If Amazon set up an Australian subsidiary charging GST I don't doubt that the games would be slightly more expensive than Ozgameshop but it would be by a dollar or two. All they need is a distribution warehouse out on the M7 and a good contract with Australia Post. As it is Australian bricks and mortar retailers were lucky that there was minimal decent online service available from Australian sellers. The rise in the AUD made Amazon and the like a real alternative. Why on earth will I make a trip to JB, find what I want and then line up when all I have to do is load up an app on my phone and I can have the transaction completed in seconds for 2/3 of the price.

At the end of the day someone along the value chain is making a killing off Australian's buying consumer electronics since the RRP on CDs, Blu Rays and games has not decreased inline with the massive rise in the AUD. If I was an importer of those goods I would have hedged my foreign exchange for as long as possible back in June. Customs duty is 5% and GST is 10% on top of that. If a billion dollar vertically integrated retailer can't make that 15% back through economies of scale over a one man EBay seller there is something seriously wrong with their business model.

Gerry Harvey isn't pissed off about GST he is pissed off about online retail. Harvey Norman may be a retailer but % of its revenues (from a quick look at its financials) come from rent received and franchise fees. That 40% is revenue for which no online model is compatible and will be completely lost to online retailers whether they be Australian or international.
 
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Big Tim

First Grade
Messages
6,500
All of a sudden it's going to make Ozgameshop double their prices and be on par with Harvey Norman, EB, game etc...? :lol:

Australian retailers have been ripping off the consumer for far too long.

Not even close.

But it will go a long to bringing the 2 prices closer together, and we will start to see people going out to a shop and buying there.

There are those that are now fully converted and would never go to a store again, I understand that. But I work in an industry where seeing, and touching the product is a big selling point.

If I am $30 more expensive on a $600 item, but you can see it, have ease of access to warranty claims and the like, people would be inclined to pay the minor difference for these perks.

If I am $200 more expensive, I dont stand a chance in hell of making regular, in-store sales.

GST and duty are not the only reason for a massive difference in the price of products bought locally and those bought overseas, but it is a lot of cost to add to the consumer. Add shipping fees, wages, electricity, phone lines, internet sites etc and you can clearly see why in-store prices are inflated over online retailers.

Add to that, most online retailers dont receive their goods through the proper channels, so they also dont have to pay an Australian Distributor or GST and bam. No shops for people to go and look at their purchases before buying.

Keep in mind, I am in a niche market (like gaming) and we are one of the biggest in said market. We have an online store that in most days does better than the shop 3:1, but my competitors are dropping like flies.

Not good for the industry, or Australian retail.

And dont go on about customer service.... its 4:10 on Xmas eve, and my staff are all still here, as they will be tomorrow, and every other day of the year.
 
Messages
33,280
Nobody mentioned customer service lol

Electricity bill doesn't justify games still being sold upwards of $100 - I think it was EB that had Skyrim first week release for $110.

Being $30 more expensive on a $600 item is a pretty silly comparison, how about being $30-50 more expensive on an item that can be bought with low shipping for the difference? That's bullshit!

I know it is not a case of "The dollar is good give us US prices" but some of the prices are f**king outrageous, especially for new release high profile games where you milk the shit out of the hype
 

adamkungl

Immortal
Messages
42,971
Sorry Big Tim, but for entertainment media (games, CDs, DVDs, etc) and small scale electronics, the Australian retail model is absolutely flawed and broken. Until retailers come up with a better model that doesn't include a 100% markup, I won't be supporting them.
 

butchmcdick

Post Whore
Messages
52,653
Who will weep for billionaires like Gerry Harvey ?

He didn't mind f**king over Australian manufacturers to buy the same products cheaply overseas. Karma is a fickle bitch eh Gerry
 

Big Tim

First Grade
Messages
6,500
Sorry Big Tim, but for entertainment media (games, CDs, DVDs, etc) and small scale electronics, the Australian retail model is absolutely flawed and broken. Until retailers come up with a better model that doesn't include a 100% markup, I won't be supporting them.

Agreed.

100% mark up would be a dream for me.

Fact is, my market is too small to be able to make any sort of difference to legislation.

Gerry's isnt.

Continue to not support the Aussie market, then what Gerry is pushing for will be introduced, and the Aussie market will have some stability.

What you dont realise is that whilst you are bagging Gerry and telling him to p!ss off, you are justifying his position, and this will inevitably force the government to do something about it.
 
Messages
33,280
OK, I will make this easier for you.

What does the average retailer pay for a AAA gaming title??

You mean like say Halo Reach which was Priced at $110 when released for $57 in the US from the same owners? Justify the markup from the same company there

MW3 & BF3 were $90 iirc
Skyrim $110 :lol:

Same company that owns EB selling the same games up to half price in the US.

Your electricity bill is that high?
 

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