Online shopping v Local shopping - Page 2

wicksy · 21-12-2010, 05:56 PM

i love online shopping haha, we get moto-x gear from the states, it is like $30 cheaper on anything over there,got a helmet for $350us and they are worth around $600AUS

pcman · 21-12-2010, 06:19 PM

try something that would have minimal sales in australia like compression stockings used in treatment of dvt

aussie price $65 a pair if i spend $150 i get free shipping
usa price $42.37 for 3 pairs to my door

J_Putz · 21-12-2010, 06:37 PM

Quote:

Originally Posted by pottery beige

and then the price of eggs was.....

read. Try it for a change.

**buggerlugs** · 21-12-2010, 07:05 PM

Quote:

Originally Posted by fmc351

Its a lovely economics 101, but only has relevance in the real world argument if Gerry isnt trying to perpetually increase return. If he was barely breaking even, then maybe he could argue that with credibility. He went from, by his own account, net worth of 2 billion to 1 billion during the GFC but has recovered somewhat. He isnt doing badly, the size of the hit he took had very little to do with online sales, it was the GFC. He was all over the stimulus package. Add into that, there are other stores in Aus, operating under the exact same market conditions, that sell the exact same TV, for considerably less. In the last 2 weeks I bought a Sumsumg LED monitor for my PC, and ordered a Panasonic 32" for my sons room for Chrissy, and Hardly Normal was nowhere near JB.

He is using this argument simply to dress up his real motivations. Making the average Aussie feel guilty for doing exactly what he does, making the most of their dollar, and keeping as much for themselves as possible. Yeah yeah, taxes, rents. Poppycock, JB has the same pressures. He only has himself to blame. We are idiots if we fall for the line that its our choices that are screwing up retail in Aus. Some stores are by simple greed. They did away with the mum and dad stores through convenience, and now convenience is moving away from them.

Once the little guys were gone some saw it as they didnt need to be competitive, until now. Bring it on. The key to a healthy market is a market with much competition, and as noted, we are a small market by global standards. This helps to pressure the oligopolies to act as if they were competing in a very competitive market, because they are as a result of online shopping.

He just has to suck it up that he cant keep making the profits he has, the market has spoken. And it seems to be saying he wants too much.

Oh yeah, his hypocrisy is palpable.

Spot on. I priced the same 55" Samsung LED TV today. At Gerry's bottom line was $3210.00 . At JB's it's $2200 and you get a Blueray thingy with it. Gerry didn't mention anything about the blue ray thingy.......

Jason[98.EL] · 21-12-2010, 07:22 PM

Quote:

Originally Posted by buggerlugs

Spot on. I priced the same 55" Samsung LED TV today. At Gerry's bottom line was $3210.00 . At JB's it's $2200 and you get a Blueray thingy with it. Gerry didn't mention anything about the blue ray thingy.......

yup and if you walk in with $$$$ in your pocket the good guys should give you an even better price and all the goodies to go with it just take the quote you got from JB

Jason

GreenR · 21-12-2010, 08:34 PM

I actually really like this. We start looking to other means to save money and pay better prices so big retailers like Gerry are having a whinge. Consumers are gaining more control over what we pay for and how much and that scares him.

Some of the price differences from Aus to USA are huge! Why would we not buy online

**ebxr8240** · 21-12-2010, 10:27 PM

I waited 20+ minutes at Dick Smith Penrith to be served to buy two LCD T.V's..
We walked out.. Talk about service...There isn't any !!!!
Then if I buy them I would have sort out how to get them home...
Online its all done for you...
Looked an automatic coffee maker... Sheesh !! $1200 for a small one and $2800 for family sized..
I came home, got online and bought a auto coffee maker from Kogan.com.au...
All for $499 for family size & delivered with 12 month warranty...

MAD · 21-12-2010, 10:55 PM

Quote:

Originally Posted by buggerlugs

Spot on. I priced the same 55" Samsung LED TV today. At Gerry's bottom line was $3210.00 . At JB's it's $2200 and you get a Blueray thingy with it. Gerry didn't mention anything about the blue ray thingy.......

Just be certain you are looking at TV's with the same model number.
Recently I have found that JB wouldn't match Harvey Norman on a Panasonic Neo Plasma.

XB GS 351 Coupe · 21-12-2010, 10:57 PM

Anyone not shopping on line is insane, you are throwing money in the bin.

The first thing you need to realise when spending money is that you can only spend every $ you earn once, and your earnings are fixed ie you will earn whatever you will earn.

So if you pay an extra $20 for a $100 item that is $20 you will never ever get to spend that $20 again, it is gone for ever, so already you are $20 behind on day one. That $20 you could have spend on something else you might want. This starts adding up really fast over a short period of time.

Lets say you buy just one bottle of water a day instead of using the bubbler at work or home (its a realistic option as there is no need to buy water at all as water is free, we have a water filter at home that costs $100 a year for a family of four, and my kinds go through several bottles a day).

Lets say $3 per day for one useless bottle of water, thats $21 a week, and $84 a month, or $1080 per year. I work with people who buy 2-3 water bottles a day (while I bring mine from home) so there is $2-3000 extra per year they don't get to spend on things they might really want. Now times that by a family of four

That money could be spend on bills, a holiday, alcohol, going out, rego etc

The money I save every day by on line shopping is allowing me to live the life I do, and allows me to drive the cars I drive.

I buy most things on line and have for years, saving many thousands of $$$ every year.

And a huge added bonus is I don't have to battle shopping centres and deal with retail staff that are too lazy to provide service even though they work in a service industry. Was sick of walking into a shop and staff is ignoring customer while they text on the mobile or talk on the phone or talk to other staff about what they will be doing on the week end.

Walked into Bunnings yesterday and asked the bloke (kid) in the tool department if they sold spot weld drills, he looked at me like a stunned mullet and asked what a spot weld was....I shook my head and walked out, and ordered a set on line for $13 (by the way Total tools wanted $48 for the same one and I would have to drive around to buy one) so I am happy to wait 2-3 days for it to arrive at my door step.

Hopefully this will make retailers more competitive, if they can't compete bad luck, not my problem, if they are not worth feeding they are not worth keeping....

ThaFlash · 22-12-2010, 12:17 AM

Xb gs 351 you lost me man

4Vman · 22-12-2010, 07:16 AM

Quote:

Originally Posted by MAD

Just be certain you are looking at TV's with the same model number.
Recently I have found that JB wouldn't match Harvey Norman on a Panasonic Neo Plasma.

Good point, It happens everywhere now, brands put out slightly different models with slightly different features and give exclusive supply of them to each chain to make cross shopping and price comparison nearly impossible.

Yellow_Festiva · 22-12-2010, 08:35 AM

Quote:

Originally Posted by HP4ME

Xb gs 351 you lost me man

I'll summarise: Money saved buying online means you can spend it on other stuff, time saved buying online means you can do other stuff.

Gambit · 22-12-2010, 08:48 AM

Quote:

Originally Posted by XB GS 351 Coupe

Walked into Bunnings yesterday and asked the bloke (kid) in the tool department if they sold spot weld drills, he looked at me like a stunned mullet and asked what a spot weld was....I shook my head and walked out, and ordered a set on line for $13 (by the way Total tools wanted $48 for the same one and I would have to drive around to buy one) so I am happy to wait 2-3 days for it to arrive at my door step.

So did you explain to him what they were or just walk out? They aren't the most common type of drills & not everyone knows everything.. Maybe, just maybe if we took the time to explain things people might start to learn & be able to help others. Chances are they didn't have them anyway but he may be able to point you to someone that would

4Vman · 22-12-2010, 08:51 AM

Quote:

Originally Posted by Gambit

So did you explain to him what they were or just walk out? They aren't the most common type of drills & not everyone knows everything.. Maybe, just maybe if we took the time to explain things people might start to learn & be able to help others. Chances are they didn't have them anyway but he may be able to point you to someone that would

Tend to agree... its not that hard to show some manners and politely explain what you're looking for and just get the result you're looking for.
Bunnings is a massive joint with an even bigger range of products, i wouldn't expect every kid to know every product in the store...

nstg8a · 22-12-2010, 08:57 AM

i just bought a 47 inch cheapy lcd tv from dick smith, and the service was bloody good. i do admit i always aim for the same girl behind the counter when i go there though, because she is always helpful and dosnt act like shes doing you a favour by serving you.
i paid for it then went home to get the car, when i got there she told me to park right out the front door, she helped me carry the tv out and helped me put it in the car.

i know the dick smith guys get paid a small commission on top of their hourly rate, so il always try to reward the helpful ones with whatever business i have there.

but i find myself buying online more and more, the only downside for me is because i live in a gated complex most of the time i end up having to drive to the depot/post office to pick it up anyway.

pottery beige · 22-12-2010, 09:12 AM

if you dont support something it will die.... bye bye Mr Manufacturing Industry.. bye bye Mr Retail Sector.. all you bloody Aussie bargain hunters are headed for another big whinge session..... more local jobs down the gurgler......

4Vman · 22-12-2010, 09:20 AM

Quote:

Originally Posted by pottery beige

if you dont support something it will die.... bye bye Mr Manufacturing Industry.. bye bye Mr Retail Sector.. all you bloody Aussie bargain hunters are headed for another big whinge session..... more local jobs down the gurgler......

Then when the aussie dollar returns to 60c we'll be paying double for everything AND have no local made options to boot because allot of our local manufacturing has shut up shop..

trippytaka · 22-12-2010, 09:29 AM

It's an intereasting situation. I have to say that I order overseas, even though I know that it ultimately hurts the economy.

When I bought my G11 camera I was working as the online editor for Harvey Norman. The best price I could get throughn staff discount (and even through a good offer from one of the franchisees I was mates with) was $950. I bought it online through an Australian company that has an office in Singapore for $500.

The retailers seem to be complaining about online, but the fact is that people have less money to spend and are naturally moving to cheaper alternatives.

I sell shirts online. I sell them $20-40 cheaper than you can buy shirts of the same quality in General Pants or a surf shop. The reason I can is because I have no overheads. But the other reason I can do this is because I have chosen a price point that I think the market would appreciate. Retail chains are not doing that... not until Boxin Day Sales anyway.

trippytaka · 22-12-2010, 09:31 AM

Quote:

Originally Posted by 4Vman

Then when the aussie dollar returns to 60c we'll be paying double for everything AND have no local made options to boot because allot of our local manufacturing has shut up shop..

So true! Look at what Bonds did. I think we're in for serious blowback from the parity situation.

Ducati888 · 22-12-2010, 09:34 AM

What local manufacturing? Most online stuff out of China doesn't have an Aussie equivalent, especially electronic stuff. As for 'bye bye retailing sector' how many religiously shop and Coles & Woolies? If there was ever a duopoly dictating terms to the consumer, that's it.

I hate Coles & Woolies, I hate Southland, I hate shopping. I have to buy stuff, and I get it mostly online.

For example, I race a Ducati. If I need parts, I can get stuff from the USA quicker and cheaper than I can get it from QLD, and way cheaper than the extortionate Ducati wrecker in Greensborough. Why wouldn't I shop online?

I look at it this way - it may cause a reduction in local retail jobs (even though online sales are a paltry 3% of total retail expenditure), but it increases the usage of the postal service (trucks, delivery vans etc). Swings & roundabouts.

geckoGT · 22-12-2010, 10:36 AM

Quote:

Originally Posted by fmc351

Its a lovely economics 101, but only has relevance in the real world argument if Gerry isnt trying to perpetually increase return. If he was barely breaking even, then maybe he could argue that with credibility. He went from, by his own account, net worth of 2 billion to 1 billion during the GFC but has recovered somewhat. He isnt doing badly, the size of the hit he took had very little to do with online sales, it was the GFC. He was all over the stimulus package. Add into that, there are other stores in Aus, operating under the exact same market conditions, that sell the exact same TV, for considerably less. In the last 2 weeks I bought a Sumsumg LED monitor for my PC, and ordered a Panasonic 32" for my sons room for Chrissy, and Hardly Normal was nowhere near JB.

He is using this argument simply to dress up his real motivations. Making the average Aussie feel guilty for doing exactly what he does, making the most of their dollar, and keeping as much for themselves as possible. Yeah yeah, taxes, rents. Poppycock, JB has the same pressures. He only has himself to blame. We are idiots if we fall for the line that its our choices that are screwing up retail in Aus. Some stores are by simple greed. They did away with the mum and dad stores through convenience, and now convenience is moving away from them.

Once the little guys were gone some saw it as they didnt need to be competitive, until now. Bring it on. The key to a healthy market is a market with much competition, and as noted, we are a small market by global standards. This helps to pressure the oligopolies to act as if they were competing in a very competitive market, because they are as a result of online shopping.

He just has to suck it up that he cant keep making the profits he has, the market has spoken. And it seems to be saying he wants too much.

Oh yeah, his hypocrisy is palpable.

Very well said. If the big retailers are feeling the hurt they will have to do what the market is demanding, cut the profits and pass the savings onto the consumer. They had years of setting the price to fat margins for them and then having the gall to tell us they were discounting and saving us money, all while they buy their next Lambo for their son. Times have now changed, we have another option and with the parity (or close to) of the AUD real savings are to be had.

Rather than whining that our spending habits are costing them money and that we should go back to the stores so we can give them more money, they should look at their own business and make it more competitive.

I will never feel sorry for someone with $2b net worth when I am trying to save a bit of money, working 50+hrs a week on my $80-90k a year.

4Vman · 22-12-2010, 10:44 AM

Quote:

Originally Posted by trippytaka

It's an intereasting situation. I have to say that I order overseas, even though I know that it ultimately hurts the economy.

When I bought my G11 camera I was working as the online editor for Harvey Norman. The best price I could get throughn staff discount (and even through a good offer from one of the franchisees I was mates with) was $950. I bought it online through an Australian company that has an office in Singapore for $500.

The retailers seem to be complaining about online, but the fact is that people have less money to spend and are naturally moving to cheaper alternatives.

I sell shirts online. I sell them $20-40 cheaper than you can buy shirts of the same quality in General Pants or a surf shop. The reason I can is because I have no overheads. But the other reason I can do this is because I have chosen a price point that I think the market would appreciate. Retail chains are not doing that... not until Boxin Day Sales anyway.

I think the thing people really struggle to understand, which is born out in some of the simplistic views on this topic, is the cost of the overheads and running a business... Wages can make up over 50% of the outgoings in most businesses alone, then rent, power etc etc... Buy ins like stock can in many cases only make up a small % of total costs..
There's no point selling your product at a "market forced price point" if its below your cost... you'll go broke in a month.

Things like Boxing day sales simply allow stores to clear excess stock after they've made enough return on the combined purchases for the month...

MAD · 22-12-2010, 10:55 AM

Quote:

Originally Posted by geckoGT

If the big retailers are feeling the hurt they will have to do what the market is demanding, cut the profits and pass the savings onto the consumer.

Only problem here, and this applies to all sectors, is that they dont cut margins, they cut quality.

MAD · 22-12-2010, 10:58 AM

Quote:

Originally Posted by 4Vman

I think the thing people really struggle to understand, which is born out in some of the simplistic views on this topic, is the cost of the overheads and running a business... Wages can make up over 50% of the outgoings in most businesses alone, then rent, power etc etc... Buy ins like stock can in many cases only make up a small % of total costs..

If they've got themselves in a position that running costs are too high, then maybe the business isnt sustainable at that level and shouldnt have expanded that far.

If the business is profitable as a one-man show but not with 3 employees, then maybe it should stay a one-man show.

4Vman · 22-12-2010, 11:04 AM

Quote:

Originally Posted by MAD

If they've got themselves in a position that running costs are too high, then maybe the business isnt sustainable at that level and shouldnt have expanded that far.

If the business is profitable as a one-man show but not with 3 employees, then maybe it should stay a one-man show.

There's a never ending game between retailers to have the biggest best store now to attract the customers in the first place... where does it stop? if you're trying to create brand image you can't do it in a run down warehouse.
Similarly product brand image has followed a similar path to create "demand"..

I don't have the solutions and i can see both sides of the coin, i just hope we can strike a balance to keep the retail sector alive and local manufacturing viable.

geckoGT · 22-12-2010, 11:11 AM

I think what is hurting them to some degree at the moment is the public perception of the increased profits due to the stronger AUD now compared to 2 years ago. 2-3 years ago the AUD was at 80c US and now it is at close to parity, yet we have not really seen a large decrease in retail prices despite the reduction of cost for the retailers on imported items.

The public endured many years of "prices must go up due to the weak AUD" but we have not really seen "prices must come down due to the strong AUD".

4Vman · 22-12-2010, 11:17 AM

Quote:

Originally Posted by geckoGT

I think what is hurting them to some degree at the moment is the public perception of the increased profits due to the stronger AUD now compared to 2 years ago. 2-3 years ago the AUD was at 80c US and now it is at close to parity, yet we have not really seen a large decrease in retail prices despite the reduction of cost for the retailers on imported items.

The public endured many years of "prices must go up due to the weak AUD" but we have not really seen "prices must come down due to the strong AUD".

I work in the Retail display industry, i have about 7 Very large multinational retail clients, ALL of them have had significant drops in turnover and profit in the past 2 years, this is despite maintaining or increasing market share.
So much so that projects with each of them have been canned due to marketing budget cuts and lack of funds to get them to market, ive even seen graphical evidence to prove it.
I'm not sure where the problem lies but i can stand hand on heart and say for these customers atleast there isn't the profits that may appear to be, even with the perception of the stronger dollar...

Ducati888 · 22-12-2010, 11:19 AM

They don't pay US dollars for their items mostly. They pay Yen & Yuan. The US dollar is low compared to them.

GT 160 · 22-12-2010, 01:03 PM

If it's only a few $ here and there i'll buy locally but majority of my shopping is online.

Last week i saved $640 on a laptop for the mrs for xmas.

My biggest gripe is when i can buy Aus made products o/s cheaper than what i can buy them here. Wine is a big example, i live about 30mins from the Hunter Valley and i can buy 90% of it more than 50% cheaper from the US !!

geckoGT · 22-12-2010, 01:10 PM

Quote:

Originally Posted by fitzwa

If it's only a few $ here and there i'll buy locally but majority of my shopping is online.

Last week i saved $640 on a laptop for the mrs for xmas.

My biggest gripe is when i can buy Aus made products o/s cheaper than what i can buy them here. Wine is a big example, i live about 30mins from the Hunter Valley and i can buy 90% of it more than 50% cheaper from the US !!

Hard to compete with both elements of that.