Online retailing back in the news as cycle business fails

Discussion in 'Current Affairs' started by goldpelican, Jun 14, 2012.

  1. goldpelican

    goldpelican Administrator Staff Member

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    'Perfect storm' blamed for broken bike chain BSC Bikes

    This business owner is calling on tariffs to be introduced on online retailers to reduce competition!
     
  2. Ghost Story

    Ghost Story Active Member

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    i saw this on the news and the only solution they didn't mention was to abolish the GST altogether?
     
  3. ozcopper

    ozcopper Administrator Staff Member

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    If you can't compete, don't be in business, OK I get the GST complaint, but an extra levy is just protectionism!!!
     
  4. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I'm in favour of scrapping GST exemption for imported goods totally.

    Probably won't do a lot to help bricks and mortar businesses because there are plenty of Australian online retailers that undercut shop fronts, but it's an unfair hurdle that the gov has put in place and refuses to move from because it will be too hard for them.
     
  5. hiho

    hiho Active Member Silver Stacker

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    I nearly went into a bicycle franchise in 2006, probably a good decision not to in retrospect
     
  6. willrocks

    willrocks Well-Known Member Silver Stacker

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    It's funny when the solution to every economic problem involves a new tax.
     
  7. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

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    I think it was the Productivity Commission that worked out that scrapping the $1000 limit and charging GST on all imports would cost about three times as much as it would bring in, so for for every $100 collected it would cost $300 in admin costs.

    That means the taxpayer (i.e. us) would be paying $200 to protect uncompetitive retailers.

    The fact that we have some of the most expensive real estate in the world seems to escape people when they're trying to figure out why retail is so tough. I know someone who is literally operating her business our of a shed outside of town and saving six figures a year on rent.
     
  8. iceblue

    iceblue Well-Known Member

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    One of Harvey normans mates.
    If he couldnt see the writing on the wall, then he is freaking blind.
     
  9. Ghost Story

    Ghost Story Active Member

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    gee there's some depressing stuff on here this morning might just kill myself and let you guys work it all out
     
  10. iceblue

    iceblue Well-Known Member

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    25- 30 Jobs??? Over three bike shops??
    I call BS, why the hell would you need that many people.
    Worked in a busy bike shop when I was a kid,just cleaning up, they would fix my bike for me, 2 blokes ran the place.
     
  11. Big A.D.

    Big A.D. Well-Known Member Silver Stacker

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    Say, 6 shifts per week * 2 staff "on the floor" = 12 casual shifts/week per store. Add three store managers and one or two mechanics per store plus some head office staff like a bookkeeper and receptionist and you can get to 30 jobs pretty easily.
     
  12. iceblue

    iceblue Well-Known Member

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    Well you would want to sell a hell of a lot of bikes to sustain a payroll like that.
    Maybe thats where is problem is, paying to many staff in non performing roles, much easier to put the blame else where.
     
  13. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    They should have opened up an internet bike shop if that is where all the money is. Bricks and Mortar stores can offer advice and assembly, something you can't always get online, that is pretty much their competitive edge, trouble is most people are looking for cheap, not value for money. I know some people do their browsing at a shop and then go and buy the same item on line after getting free advice.

    It doesn't help when you get a company like ALDI once a year selling cheap bikes and equipment. I have never been in a bike shop but I picked up a couple of bikes last time they were on sale at ALDIs along with helmets, locks, puncture repair kits etc.

    I wouldn't bother buying a bike online, postage must be pretty high and it's not like they would leave it at the local post office for me, I would have to get it delivered to work or take a day off to meet the postman.

    Charging GST on all imports would be another way of making criminals out of civilians. I occassionally get items sent from abroad that are over the $1000 limit and the amount of mucking about and additional charges they slap on you is not funny! 5% duty on the items + GST on the item and postage + $50 handling fee. Ended up costing just under $200 and taking an extra week to get my goods.

    We have a coffee shop, most of our business is from people coming to have a chat with the owner, you can buy coffee cheaper in the supermarket and probably online as well but they still come for the atmosphere, and the burgers...
     
  14. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    My kids do that. Say they want a wetsuit or dress or shoes, they go to the shop, try it on, then buy online. The shop is just a fitting room. I don't because I value customer support, but they have different values.

    There's bikes and then there's bikes. ;)



    No, it's just an unfair scenario that the Gov't refuses to even consider changing because it apparently will harm their bottom line. They don't give a shit about business owners bottom line.

    That's coz you provide a quality product and service they can't replicate or couldn't be bothered replicating at home. And don't they always want a chat when you're completely flat out!!!!! :lol:
     
  15. Dogmatix

    Dogmatix Active Member

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    He blames the high rents... So the solution instead is to shaft his competition?

    We need a recession stat. That will fix the rents problem.

    Thanks for saving us from recession Rudd... idiot.
     
  16. Jislizard

    Jislizard Well-Known Member Silver Stacker

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    Yup, brakes never really worked (or we never worked out how to adjust them properly more like) and they rusted from the spokes upwards. Lost the keys to the bike locks and the cycle computer we got from them never worked well enough to be any use.

    But very cheap and the wife promised that we would use them every weekend, until she discovered that there was a slight incline outside our house.

    At our shop the first customer gets the coffee and the chat and the others just wonder what the hell is taking so long! It has gotten easier since the ferry service closed down, lost half our early morning customers.
     
  17. Ghost

    Ghost Member

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    +1000000000000



    What a load of whinging shite....

    How is it that I can buy a Japanese camera from a bricks and mortar shop in New York City and get it delivered to my door in outback WA for half the price of the exact same camera in an Australian shop....

    Even if the Govt. removes the $1K import exemption and I have to pay 15% extra on my purchase, I'd still be miles ahead compared to buying said device locally...


    Maybe the poor old Aussie-Business-Owner-Battler could lower his margins abit and stay mildly competetive...
     
  18. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Hello mister Ghost who has no idea what the turtle goes on in the real world and Mister Big AD who loves the government.

    The GST exemption favours foreign retailers at the expense of Australian retailers and jobs. It's a simple as that, there is no way to argue any different. That's why we have an Australian government. To protect foreign businesses and workers.

    Are you serious Ghost? So you are in favour of my business having to collect GST on a $15 sale but don't believe a foreign business selling to an Australian market should have to? Get a fuckin grip on reality son.
     
  19. ozcopper

    ozcopper Administrator Staff Member

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    The problem is rents, wages and taxes. Many online businesses don't have some of these costs.
     
  20. goldpelican

    goldpelican Administrator Staff Member

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    Simple solution (original thread is from June BTW) - scrap the minimum wage.
     

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