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Old 04-11-2010, 11:36 AM
rally
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rally is offline
 
Join Date: Sep 2007
Location: Australia
Posts: 896
Ignoring the fact that it would be uneconomic to collect GST on small purchases, I think their entire argument is flawed completely.

There are a variety of very identifiable reasons why people shop and why in some cases they go overseas or internet shopping to be satisfied.

1. Price
2. Product availaibility
3. Deliverability
4. Service
5. Information
6. Accessibility
7. Freight cost

No doubt there are more

In my own OS shopping experiences - my caveat.

I can often buy better overseas even if I added 10% to the price so that isnt going to stop me - so their main argument is flawed.
But I also have bought when it costs more too.

But on the other issues which are even more important - price is simply not the biggest issue - I may want something in three days or I may want to reward the person that gave me the best service !

By Issue

2. & 3. The Products I want to buy often don't have an Australian distributor or even if they do I cant find them, they dont have any stock whatsoever and their ordering processes take months not days.
So there is no Australian purchase option anyway - nobody can actually deliver in a reasonable timeframe.

4. Service from overseas has mostly been substantially better than local - I can order something domestically and they dont even get around to packing it for days - yet overseas its out of the door on whatever day you order it including weekends, I wont get into the personals of some local resellers - but in quite a few cases I will say that service, customer attitude, response times, product knowledge have been very poor to downright terrible and non existent - this is not only specific to the Astro industry and of course is not true of all I have dealt with.

5. Information is much more readily available from most of the overseas companies I buy from - I can get the information that I need to make a purchase decision either on the web, PDF or by email or in just one phone call. In Australia this has often become a long drawn out process that is convoluted, full of frustration and doesnt easily allow for direct comparisons - on the flip side I have used overseas supplied info to buy locally too !


6. I think that many Australian retailers don't yet fully understand retailing in the 21st century. Many overseas retailers do - a product needs to be readily found and sourced, easily researched with all required info available, and able to be purchased simply and easily and freighted quickly and cost effectively - we mostly live busy lives and dont have a lot of extra time to go shopping - online shopping allows us to do these things when it suits us - there is nothing stopping Aussie retailers to get off their lazy behinds and catch up with the rest of the world - those that have done so are reaping the rewards, those that dont are grizzling about reduced margins and cheap imports ruining their businesses !

7. I can in some cases get things sent to me quicker and cheaper from OS than locally ! But usually it costs a bit more, but usually quicker - so its obvious that I am not buying solely on price.

If and when Australian retailers are competitive on all these counts and can provide the sorts of services that enable people to buy from them in the same manner, they may see the trend reverse - its a supply and demand world - business just doesnt walk in their door just because they open it - they need to be proactive about it and make sure their customers know about and receive the services that will enable a buying decision - as more doors close because of it, new doors will open that realise how to do business.
That is the way its always been - how many shops do you walk into these days where the money is transferred by cannister up spring loaded lines or vacuum operated ducts to a central cashier !

So maybe the Australian Retailers Association should spend their time and efforts training their retailers and bring them up to speed with the 21st century and providing them with the sorts of modern hi tech resources they need to cater for modern customers in a modern world. eg Web based shopping engines at low cost, Australian cooperative buy/sell Portals, decent freight costing systems etc etc,

I do buy local where I can but not just because its local.

My 2c worth from my own experiences.

So charging GST on all purchases will create another mega bureacracy that will inevitabley cost the tax payer more and I doubt will not change the buying habits of more than maybe 10% of shoppers and potentially make the retailers even lazier in terms of redeveloping their businesses.
Retailers who become proactive would have a much greater effect on changing the habits of shoppers !

Cheers

Rally

PS Forgot to cover Warranty (there are pros and cons to this) and forgot about Secondhand goods - (things otherwise unavailable here - but not identified by Customs as 2nd hand goods just lumped in to consumable goods via their tariff code or by value only)
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