GST on imported goods from 1 July 2018

[Ferret619]

I foresee many more “gifts” International fellowship at an all time high.

 

[beerhog]

Only question I have

Minimum wage in aust > minimum wage in USA.

How can local business counter this disadvantage? You can see how companies try to cheat workers and I am trying to think of a better way

If I want to ship 1 washing machine from the states it will be $500 ish but for the big boys the shipping per unit will be $50 or so.as an end of line consumer you pay a per unit price that far exceeds what a full container of washing machines will cost.somehow little high street appliance stores without the advantage of bulk ordering survive and usually offer far superior service yet the big guys bitch they cant make money. Truth is there has been a long culture of protectionism in this country that yielded fat fat profits for the big guys and now in times of narrower margins they have to adjust and adapt.gerry has been very slow to adapt and move online and even with the amount of whinging he does and the millions he throws at politicians still runs a profit. The better way forward is to do nothing. As time progresses the cream will float to the top and survive.those that refuse to adapt to modern conditions will wither and die.dick Smith is a good example he saw the future and flogged off his business early.

 

[Rami]

@beerhog
Agree that the old model and Harvey Norman needs to go. But that not who I am thinking about.

Flogging a business is not a way to plan for the future.

Here is my thought.

1 company in USA selling a washing machine = material cost+ transport cost + labour cost + tax cost(very little taxes)+ profit

in Australia

Material cost= Same or a little bit more based on volume.
Transport cost = a bit more due to distance
Labour cost = a bit more
Tax cost a bit more
Profit same

As a consumer we will always pay more in Australia than overseas the question is how much more is fair

 

[borked]

Guess ultimately it comes down to cheaper goods vs higher income.
A lower income will also see our labour become more affordable upon a global scale, thus more attractive to MNC's.
Yet this will reduce income for the far right of the bell curve due to lower expenditure, thus lower profits and the same effect in taxation.
Both the government and the far right upon the financial bell curve would not allow that to happen, as to which Gerry is a bit player at best!
To further complicate the issue, the required depreciation would bankrupt many private citizens and companies due to a massive balloon of private debt.
For example, the last company I worked at had a turnover of over a billion in sales the last few financial years, yet are at a point that it's questionable that they're able to actually pay off their creditors if that debt is called in.
This major importer/distributor collapsing would see many smaller business also failing.

 

[tullfan]

Remember also that New York State has a population roughly equal to Australia.
I am not the slightest concerned about the new Legislation,shipping costs usually are the deciding factor for me,and I cannot see small family companies like Maggards even bothering to collect the tax.
The O/S companies that comply will see a reduction in sales with a corresponding increase in complying costs

 

[huntereyes_]

Only question I have

Minimum wage in aust > minimum wage in USA.

How can local business counter this disadvantage? You can see how companies try to cheat workers and I am trying to think of a better way

In two words, transport costs

 

[alfredus]

Only question I have

Minimum wage in aust > minimum wage in USA.

How can local business counter this disadvantage? You can see how companies try to cheat workers and I am trying to think of a better way

SERVICE!

I am always happy to walk into a specialised store, get great information and know, I will be taken care off, if everything happens.

For this I am more than happy to pay more...but I am not prepared to pay more and get crappy or no service, no choice + as soon as they got your money, they turn around and run....

 

[Rami]

SERVICE!

I am always happy to walk into a specialised store, get great information and know, I will be taken care off, if everything happens.

For this I am more than happy to pay more...but I am not prepared to pay more and get crappy or no service, no choice + as soon as they got your money, they turn around and run....

Meh. For everyone that pays for service there are people that get the service then go and get the item elsewhere or try and get you to price match

 

[Razor Burn]

SERVICE!

I am always happy to walk into a specialised store, get great information and know, I will be taken care off, if everything happens.

For this I am more than happy to pay more...but I am not prepared to pay more and get crappy or no service, no choice + as soon as they got your money, they turn around and run....

Or trying to sell you extra warranty despite Australian Consumer law protections basically rendering them pointless. Had one young guy try and argue with me when I declined paying for extra warranty on my Sony TV, to the point he was prepared to loose my business after I mentioned my rights as a consumer and that the price I pay for said TV should mean it lasts longer than 12 months (unless you purposely break it). No idea about customer service the teenage punk

 

[Razor Burn]

Meh. For everyone that pays for service there are people that get the service then go and get the item elsewhere or try and get you to price match

In all honesty it was a lot of the business' introducing price matching to attract customer's and as a consumer I shop with my wallet

 

[alfredus]

Meh. For everyone that pays for service there are people that get the service then go and get the item elsewhere or try and get you to price match

And that's why you have so many crap stores with even crapier service. I go to places like Officeworks or Harvey bla bla for a price match, when I did the research myself and know exactly what I want. When I go to a small specialised store, I always go with the intention to buy, and I usually end up buying...

 

[Rami]

wish there was more like you round @alfredus.

 

[Mark1966]

Meh. For everyone that pays for service there are people that get the service then go and get the item elsewhere or try and get you to price match

True and this is where I think we are sometimes short sighted.

I think though as @alfredus said it all comes down to service.

I've usually got some broad idea of prices before I got into a B&M store and usually do so where I want to check out something with an item which is hard to do online. If their service is good and they are helpful I will generally be happy to pay what they are asking as long as it is not too outrageous - I'd say +20% max.

If I get OK service and I'm there in store I will often just pay online +10% for convenience.

We actually had the recent experience of buying a new vacuum cleaner and went into two stores and were SMOTHER by sales people who when we said we were just looking hovered close by. It was really unpleasant and we walked out. We were then walking past Myer of all places and my wife suggested looking there. We were approached by a salesperson who got it right - gave us enough initial information to look, left us in peace and then came back at just the right time to answer a question and at that point he got the sale. It was the last place I expected to buy from and it was largely on the basis of that saleperson's experience and good service.

Other whitegoods I've largely purchased online where it is significantly cheaper AND even at 10pm I can get information from a chat. Tech gear is often purchased in B&M for me (MSY or JB) as delivery is problematic (many will not ship to PO boxes).

I don't think that retail is dead - it just cannot be complacent.

Oh, and I have walked out when somebody has offered to price match on more than one occasion. The most recent being a new car purchase when the difference in handover cost was $1k. The first dealer when I told him I was going elsewhere offered to match the other's price. He seemed a little annoyed when I told him that was just a lazy selling strategy which I would not reward by going to him and that he should have given me his best price up front. Was that too direct?

 

[lerenau]

Nope. Not too direct. Sounds just right to me.

 

[alfredus]

Oh, and I have walked out when somebody has offered to price match on more than one occasion. The most recent being a new car purchase when the difference in handover cost was $1k. The first dealer when I told him I was going elsewhere offered to match the other's price. He seemed a little annoyed when I told him that was just a lazy selling strategy which I would not reward by going to him and that he should have given me his best price up front. Was that too direct?

Seriously I don't get why people fall for this strategy...having a crap price from the get go and offering a price match if I do the research???

 

[borked]

Because they rely upon people not doing research beforehand.

 

[Ferret619]

The auto industry is an interesting beast when it comes to price structures.

 

[Mark1966]

There's a 1930s James Neill Eclipse Red Ring Razor for nearly $815 AUD already included shipping cost is still available on the market from the UK,

+ GST don't forget ...

[mine will be much cheaper BTW]

 

[SpeedyPC]

+ GST don't forget ...

[mine will be much cheaper BTW]

@Mark1966 It's doesn't say GST on the website I'm looking at now

 

[Mark1966]

@Mark1966 It's doesn't say GST on the website I'm looking at now

It will be payable on all imports from today including low value (<$1,000) imports.