[LINK] Kogan on Online Retail....

[Richard Chirgwin]

Marghanita,

I haven't compared to the UK.

With regards to the US, Internet sales are, as I understand it, exempt 
from state taxes (something which several states are lobbying to change).

However, when the price gap is more than 50%, the issue of sales taxes 
becomes moot.

RC

On 9/01/11 4:01 PM, Marghanita da Cruz wrote:
> 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
>>> _______________________________________________
>>> Link mailing list
>>> Link at mailman.anu.edu.au
>>> http://mailman.anu.edu.au/mailman/listinfo/link
>>>
>>
>>
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>
>