The Fundamental Issue Facing Oz Retail

[pmcgee]

Is it Volume ... or is it Transparency?

This was discussed already wrt a compassing jig.

I think it will become a VERY BIG ISSUE and am not condemning retailers - but it is going to be a massive challenge for them.

Fair to say - US$85 freight to Australia ... if you take that route.

Nikon D3100 refurb US$305 Nikon D3100 Digital SLR Camera w 18 55mm VR Lens Refurbished by Nikon 25472B 018208130269 | eBay (http://www.ebay.com/itm/Nikon-D3100-Digital-SLR-Camera-w-18-55mm-VR-Lens-Refurbished-Nikon-25472B-/370829834744)

Nikon D3100 refurb A$496 Nikon D3100 DSLR Camera with 18-55mm VR Lens - Digital SLRs - Cameras - Cameras | Harvey Norman Australia (http://www.harveynorman.com.au/nikon-d3100-dslr-camera-with-18-55mm-vr-lens.html)

Paul

[Sturdee]

Taking your example:

Second hand, albeit factory refurbished, US $ 305 + US $ 85 freight at today's rate = A$ 420 . Add on the GST Harvey Norman has to pay = $ 462 compared to A$ 492.

So Harvey Norman has large retail establishments and staff and an easy local store replacement warranty all for $ 30. Sounds quite reasonable to me.


Peter.

[Scott]

It's a reoccurring theme round here Paul, regardless of what's being sold. I think the best comment on the thread you were referring to basically states that it's not a local market anymore, more an international one. With the advent of the internet the buyer is more aware of international prices. We can't afford to be 'buy local' centric anymore, it's not cost efficient.

[q9]

That example isn't the best one for your argument. The ebay seller can avoid our fairly robust consumer protection laws, whereas HN cannot (even if they try). And it is a refurb item, not brand new...

The biggest issues I have seen in retail is really real estate pricing and labour costs. In NJ, according to a quick google, current minimum wage is $8.50/hr. It is about $16 in Oz. In Japan you can expect about 800yen/hour (and forget overtime/penalty rates).

But I'd argue it isn't really more expensive.

In comparison, the HN is a bargain as a percentage of wage rates. You have to work 36 hours at the minimum NJ rate to afford the US based item, and only 31 hours at Aus min rates to afford the HN one.

Horses, and courses...