Quote:
Originally Posted by tlgerdes
Has anyone ever thought how much it costs to run, staff and stock a retail shop? I would say getting close to a $600,000 before I sell something. What would be the turnover dollar value? and then the profit for the effort.
Everytime you shop at OPT or some other overseas market, it indirectly increases the cost of equipment for people who don't like to buy from overseas.
You have the choice. But dont think the retailers are in it just to lose money, to make you feel warm and fuzzy.
You pay for advice, and the more you shop OS the less advice they can provide and they now have to compete on price alone.
20 years ago you could go to someone like Dick Smith Electronics and get good researched advice on the products they carry, try getting that same advice now, it is just Woolworths Electrical Supermarket.
If that is what you want then great, but I dont.
4 staff $250,000
Rent $100,000 pa
Insurances $100,000
Othe goings $100,000
Stock $$ depending on turnover etc.
So when you start to look at the figures, on a $1mil of stock cost, I have to make about 50% gross margin to just stay in business, $2mil and it is now 25%, $3mil 19% etc etc.
And you all want this for less than 10% margin on Australian volumes.
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No one is disputing the cost of doing business, but when a telescope retails at 3 x the RETAIL cost of what it is in the US (in au $25k - in the US US$8k) There is absolutely nothing that can justify the price difference.
The retailers in the US have similar outgoings & they are still making profit on their retail price + the US retail price usually INCLUDES shipping within the US.
Try getting that here........
Buy it retail @ US$8k + AU$2k shipping to Brissy + AU$1k for taxes +
an assumed AU retailers 50% profit = approx AU$17k
Still WAY below the current retail price of $25k
So where's the justification for the remaining AU$8k ????