[LINK] Kogan on Online Retail....

Marghanita da Cruz marghanita at ramin.com.au
Sun Jan 9 16:01:57 AEDT 2011


Richard,

In the US VAT/Sales Taxes are added onto the purchase price, 
at the point of sale,
whereas in Australia GST is included in the RRP.

Are you including VAT/ Sales Taxes in the US price?

Marghanita

Richard Chirgwin wrote:
> Fred - I don't know about it being good for products. But if you're one 
> of ten retailers of a must-have product, do you:
> 
> a. Rock the boat by exposing resale price maintenance?
> b. Rock the boat by importing lower-cost supplies from the US and damn 
> the consequences? or
> c. Shut up and draw attention away from the supplier's role in price 
> setting?
> 
> RC
> 
> On 9/01/11 2:23 PM, Fred Pilcher wrote:
>> 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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> 
> 
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-- 
Marghanita da Cruz
http://ramin.com.au
Tel: 0414-869202






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