[LINK] Kogan on Online Retail....

[Marghanita da Cruz]

Richard,

The point is that in Australia, prices are quoted including
the Tax - which retailers may wish to change. In the US, it
took some getting used to, to discover the price at the
Checkout was higher than the price on the shelf or the menu.
I think it was something around 15% - though I can't confirm
this.

You also need to allow a bit for exchange rates - we may see
some change as the Australian Dollar has only relatively 
recently
made and exceeded parity with the US. So, you could allow
10-20% there too.

So, we could be looking at a 10-20% price difference between 
the US and Australia - perhaps partly justifiable by product 
localisation costs for a small market/lack of competition.

Deals with retailers/telcos etc are likely to be more 
complex than markups on individual products.

Marghanita
Richard Chirgwin wrote:
> 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
>>>>
>>>
>>> _______________________________________________
>>> Link mailing list
>>> Link at mailman.anu.edu.au
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>>>
>>
> 
> 
> _______________________________________________
> Link mailing list
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> 


-- 
Marghanita da Cruz
http://ramin.com.au
Tel: 0414-869202