Bricks & Morter V Internet

There is much discussion going on at the moment regarding people buying off the Internet instead of going to the shops and buying the traditional way.  The businesses are saying that they are losing profits and will eventually have to close their doors (a bit drastic I feel). The feeling is that restricted shopping hours are to blame, the Chamber of Commerce wants the Govt to deregulate the shopping hours over here, which I believe, as apposed to the Eastern Seaboard, are less.  However I feel there is much more to the problem than just the 'Internet'.  I have just finished my Christmas shopping and I started to wonder what would turn me to Internet Shopping, (BTW I did do some on the net which I couldn't get in the shops).  Here are a couple of my thoughts.

The big one for me, considering it is Christmas Shopping, is the lack of Christmas Carols in the Centres.  Upto a few years ago I had always bought more at Christmas than I had planned for, there is something about walking into the Shopping Centre with Carols playing to get the spirit of Christmas running through the veins.  I don't like shopping so I normally make a list and go in, get it and get out, that's easy now, no impusle buying anymore. Surely I'm not the only one that feels like I've been deprived of my Christmas Shopping.

Another is the 'service' or lack of it, no one seems to be interested in their jobs anymore, if I go into a store I usually have to look for someone for help, mainly to pay for my purchase.  Ask someone about the product and forget it, they know absolutely nothing about it.

To me the stores are not really kept tidy, they may be tidy when the doors open but no one seems to clean up after that,  The big chains are worse for that.

Throw ontop of that the fuel that it costs to get to these Shopping Centres and the experience of buying on line in the comfort of my own home, to me is becoming more of a possibility. I do shop online but I also try to support the shopkeepers out there, particularly the smaller ones, but if they don't start to go back to the service that use to be, I can see a lot more people shopping on line.

Just my thoughts after a couple of rough days Christmas Shopping in our Centres.

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IMO Deanna, you are just skirting around the edges with the problem.  In a generality, people are just going to buy at the cheapest price, & there is the problem.  Government interference in our lives is costing Australian business out of existance.  As I have mentioned, on here, before, 68% of Consolidated Revenue is spent on Public Service salaries in NSW.  People overseas cannott believe that we have a payroll tax in Australia.  It is only a matter of time before our GDP will be made up of the Tourism trade, Restaurants & Mining (& the Government is trying to tax mining out of existance)

How can business compete when they have to pay double time etc to open for reasonable hours.  The minimum wage in Australia is killing us.  Retail businesses have to work on margins of 30 & 40% just to stay in existance.  You are hard pushed to get a 250 Gram steak dinner at a restaurant in Australia for less than $22 to $25, whereas you can get a full 1 kilo steak dinner anywhere in the USA for less than $20 & be eating better quality Australian beef than you can buy here.  The minimum wage in the USA is just over $7 p/h & in Australia around $15.50.  As a general rule, you can look at doubling the wage to cover  the extras to employ anyone.  You don't have to be very good at business to know that this is not sustainable.

What I believe is making it worse is that we are accepting it.  International brands of cigarettes have roughly the same wholesale price in all western Countries,  Taxes & excise make up over 65% of the retail price, BUT Aust. retail around $90 & duty free at the airport $65 to $70.  Overseas duty free for the same brands around $25.  I used to think that we are being ripped off, but if you look at the costs of running a duty free shop, you will see that it can't operate on any lower margins.

Remember the Scouts & Girl Guides lamington days.  It now costs $100s to set up & lengthy delays in obtaining DA's from Council as well as food preparation licenses & Insurance.  Result  Finished!!!

It is a total mindset that we voters have allowed to develop.  Senior Public Servant's salaries are totally based on reward for inneficiency.  If any Departmental Head were to come up with a plan to cut staff by 10%, he can look forward to a pay cut of 10%.

Members on here will point out that I am a doomsdayer.  I suggest that they read the economic history of Argintina.

Wages, worker's comp, employee super payments, penalty rates/overtime.

How the heck can a small business exist in this country.   And it aint gonna get any better while we have the unions/Greens in Govt.

 

Hi Innes, I agree with most of what you say, however, you have used the example of a 'steak dinner', I believe that if you go and have your steak dinner over in USA you have to pay a 'tip' usually 10%, please correct me if I'm wrong, (I know you will LOL) I'm not an overseas traveller so am only going on hearsay.

 I shop for perfume online is--because it is MUCH cheaper--$198 here and I get the same thing for $60 on line from the USA, INCLUDING postage. The other reason I think a lot of places are loosing out is because so many of the big shopping areas such as Westfields charge like wounded bulls if you stay more than 3 hours--I am not willing to pay for parking if I am spending money there , so I do not go there now. As far as the Xmas carols--they drive me up the darn wall--and I can't get out quick enough--
I try and not go to the shopping centers around this time of year unless it is for food I need to get me through. I would never buy clothes or shoes etc on line as I like to try on and see B4 I buy. They also need to know that there are many that do not use computers and so will never be buying on line.

PlanB said: "As far as Xmas Carols- they drive me up the wall -and I can't get out quick enough"  LOL :) :)

I can't find a shopping centre that's playing them PlanB, maybe we should swap States. :) :) I agree, shopping Centres and I just don't get on too well at all, get in get out is my motto, I have two daughters and a daughter In Law who just love 'shopping therapy'.

Apparently there are a lot of people who go in and try on clothes/ shoes in stores and then go and buy it online, now I don't agree with that, use the service, pay for it there.  I do agree with you about trying before buying, I have to anyway, my size is one of those that is inbetween. LOL

I agree that it is not just a matter of price and there are awhole raft of different reasons to shop online. Price is, however, a major driving force. It is simple economics - here in Oz, we have a low population over which to spread costs......that is often why things are much cheaper in say the USA.

I recently scoured the net for a starter motor for my outboard motor. A rusty, crook-looking second hand one was available in Australia for $250. Checking further afield, I found a brand new one (with warranty) in the USA for $74...... add another $70 for express delivery and I had it on my doorstep in a week.

I have been shopping on the internet for years and use Paypal linked to a bank account. I have never lost a cent in fraud or shoddy goods. I feel for retailers with their exhorbitant rents, high wages, GST, OH &  S, etc., etc. but like most on a fixed income, it is the bottom line price that mainly influences my shopping habits. Thank God for Ebay.

It's not just the price, you have to work out freight, time your waiting for the item to come and then there's the risk of "is it going to be OK"  You have to know how to work out the good sellers from the bad when it comes to ebay, If I'm looking for a big ticket item I must admit I do check out ebay first and then work out the other points, quite often I go instore for it anyway,  most stores tend to try to meet ebay if you negotiate with them, (allowing for freight of course).  My daughter bought a TV on line last week, the cheapest she could get in store was $5000, she got it on the net, delivered to her house a week later for $3500 so you can see why the net is in vogue.

The Government is now talking about charging import duties on anything coming into the country.  So for those doing overseas shopping you had better get in quick before they do.

Wonder how this will affect goods sent by friends as gifts.  I know a friend in New Zealand who had a gift of cigarettes  sent to her from the USA costing $25.00 there and they asked her to pay

$ 80.00 import tax.



You are right Sandikay, they are looking at import duties but they also want to through on GST, but I do believe it will cost them more to implement than what they will get in return. 

Expensive cigs there. LOL

You can bet they will find some way of stopping us from getting cheaper goods, it used to be no tax to pay unless the item was $1000 or more

Mainly because of administrative problems, I don't think you will see any change in minimum import being free of sales tax.  There is not enough room to go into the technicalities of it on here, but cigarettes & liquor are a totally different subject.

BTW kfchugo you just gave a pretty good case for the bottom line being the only line.

The comparison with the USA population is not good either.  The only city in the USA bigger than Sydney is New York.  Sydney has a bigger population than LA  & San Francisco combined.

It is interesting to note that most quality goods are as cheap in the USA as in China.

I believe that it all comes down to minimum wage & over Government.

There seems to be a lot of union bashing lately, if you ever had to work

for an employer, surely you know your conditions wages and hours

were mainly because of a union. even the most anti- unionist would

have benefitted from a union.

I would say that with most of the large retailers who were able to get

longer working hours and open nearly everyday, instead of increasing

staff, have fewer now, it is much harder to get assistance.

Seth, when I entered the workforce in the Banking industry I joined the union and found it to be largely useless. I resigned when I left the bank and since that time never joined a union again. I talked with my employers and argued my case for pay increases and changes to my conditions when I thought it appropriate.

When I felt that I was not being treated fairly, I "voted with my feet" and usually found myself a better job. I understand that not everyone has the confidence to do that and many are not in an industry where it is practicable. For many, unions or collective bargaining would be the only way to go. The downside however is having to live with union recommendations or majority decisions that one might not agree with.

Deanna, I had missed your comment re tipping in the States.  You are correct,  I had forgotten about the compulsory tipping.  Let me add though that the tips make up most of the waiter's pay, so the service is wonderful.  Much better than Australia.

Service here in Aus (a generalisation I know) seems to have gone out with Top Hats.  I would find it hard to go somewhere and be forced to pay a tip, to me it would be similar to a bribe, the bigger the tip the better you would get looked after. Not sure if that would be right, but human nature such as it is, I could imagine that's how it would work.

I must make a further comment about across the board pay rises.  Why do you think the Gov., seldom objects?  The Union pushes for a minimum pay rise of $20 p/w.  The cost of living goes up by $20 & the Gov., gets $6 in tax leaving you with $14.   Ergo, every $20 minimum pay rise means you are $6.00 worse off than if you did not get the rise.  If you do a little simple mathematics, you will realise that the only way you are actually better off is to take an across the board drop in pay, thereby achieving a net gain in income.

I know  families with children are doing it tough here in Australia so how on earth would they survive on less than the basic wage as it is now? I believe some HAVE to have a top up from Centrelink because it is impossible for them to make ends meet with rent etc. etc. SO high. Surely Pensioners would do it even tougher than they do now as it has to be a flow on?

..

I would never go out to eat or much else if things became as they are in America re tipping and more tipping. I have heard waiters will chase people down the street if the obligitary % is not given to them in the form of a tip but it also seems nobody does anything just as a service and Travellers have their hands in their pockets and struggling with ethics re how much is EXPECTED in tips to the effect many find it distressing- I know I would.

Re the tipping Phyl, I'm with you on this one, totally agree,  and I know of people who have gone over to these countries where tipping is expected and come back with it as their biggest nightmare of the trip.

I know that it doesn't seem possible to live on the money in the States Phyl, but you have to remember that the actual cost of living in the States is so much lower than here.  The home that costs near $400K in the outskirts of Sydney & Melbourne has the equivalent tract home in most of the major cities of the USA of way below that.  The average price of homes in areas like Maine & Pennsylvania is not much more than half that.  Just look at income tax levels. An individual earning $650 P/W is hit for the net tax of 15%.  You can earn $3,400 P/W before you pass the 28% bracket.  The most annoying thing is to go into a big supermarket & find a leg of prime Aust., lamb for under $20.  Just try & find our home grown lamb for under $30.00 here.  They are screaming because petrol has just passed $3.25 /Gallon (81 cents/litre)  Sydney cheap Monday price around $1.30/litre or approx., $5.20/US gallon.  But what can you expect when over 4 million of our labor force are employed by the Public Service or it's instrumentalities.

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