[LINK] Kogan on Online Retail....

Fred Pilcher fpilcher at netspeed.com.au
Sun Jan 9 14:23:45 AEDT 2011


Richard wrote:
> It's quite clear that vendors - not just in the IT industry - impose
> what amounts to "penalty pricing" on markets like Australia. I'm
> assembling some price samples out of curiousity, and I can see vendors'
> "recommended retail" prices in Australia that are more than 60% higher
> than their US counterparts. It's easy to pretend that this is just
> retailer greed, but how do you account for it when you're talking about
> people who own their retail outlets (eg Apple)?

It's one of the basic principles of capitalism: charge what the market 
will bear. Australia's pretty much a captive market for them - it's not 
easy for us to pop across the border into another country, and they 
often place restrictions on international sales.

Australian retailers are probably happy to go along with this price 
gouging since it enhances their profits.

Fred



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