Author Topic: Is the internet destroying small business? (Read 795 times)

garrettguy · « **on:** December 01, 2011, 19:16 »

Just wondering any businesses that are struggling due to cheaper prices overseas?
I just wonder how people are able to compete with these cheaper prices?
Im a tradie and sales on new products are down but service work will always be there.
Do people only look for price rather than service?

alimo88 · « **Reply #1 on:** December 01, 2011, 21:45 »

If you are willing to risk the slight chance of a warranty problem, then price seems the key aspect.

BAZ · « **Reply #2 on:** December 02, 2011, 08:22 »

Problem with this country is there are too many" inbetweeners "all wanting a slice of the action --all adds to the selling price.
I run a small ( profitable ) business with my son and sell direct to the end user. We manufacture our own products and sell world wide direct to the customer. Our prices are at least 30% below anybody else. Sure we could up them by 30% and rip people off same as others are doing, but they are going out of business we are still there and will be for a long time.
Lesson here is long term viability not short term massive profits.
Baz

Ecto1 · « **Reply #3 on:** December 02, 2011, 08:52 »

Well Baz bravo!

Kind Regards

Ecto1

Sent from my iPhone.

ivanll · « **Reply #4 on:** December 02, 2011, 15:44 »

A lot of small businesses have got my business because they were on the internet and provide a service.

I only spend "My" money and so try to get the best value as possible.

A lot of parts, apparels and other accessories associated with prospecting and metal detecting is not available here.

I shop where it is available, but do not pay for excuses and promises which is often included in the price of imported items.

ivanll

garrettguy · « **Reply #5 on:** December 02, 2011, 19:52 »

Baz
I totally agree with what your saying. Last year a supplier told me a
well known brand or airconditioner costs the supplier $580.
By the time the distributor gets it then sells it to a wholesaler then to a
tradesman the cost for the end customer is close to $2200.
Maybe it would be good for manufactures to sell to more businesses
to help create more competitive pricing. I just hate seeing everyday australians
going broke because of un competitive pricing very noticably in metal detecting industry. Small business is lucky to make 20% commision
Hard to pay rent and overheads on those prices.

AT Pro Guy · « **Reply #6 on:** December 02, 2011, 20:36 »

gets so hard to find a small business selling aussie stuff. i finding a lot of aussie business is really selling stuff made in china. solar lights is my latest example, if i could find a aussie made solar powered xmas light i would consider buying it, but all i find is aussie stores are supplying the exact same lights anyone can buy direct from china for about 300 percent more,

Adrian ss · « **Reply #7 on:** December 03, 2011, 21:14 »

Quote from: jack on December 02, 2011, 20:36

gets so hard to find a small business selling aussie stuff. i finding a lot of aussie business is really selling stuff made in china. solar lights is my latest example, if i could find a aussie made solar powered xmas light i would consider buying it, but all i find is aussie stores are supplying the exact same lights anyone can buy direct from china for about 300 percent more,

There was a time when you could buy pretty much everthing you needed and it was made in Australia.
But because of the cheaper Chinese imports that have flooded our market, most true Aussie small buibnesses have folded. It is up to us as the consumer to support our Australian made products )whats left of them)necause without that support Australia will soon be totally dependant on imports and all of our primary industry will be totally foreign owned and run.

BAZ · « **Reply #8 on:** December 04, 2011, 07:31 »

There is another dealer in Aus selling the AT pro International for $130 less than others. Now the question is " if they can do it, why cannot the others"
I fully expect items made in the US and sold in Aus to be somewhat dearer -- freight etc, but it's obvious that if the local dealers need to charge so much higher prices they are not buying correctly.
Yes I know all about quantity buying discounts and all of that, but this other dealer is probably buying less quantity and can still sell for $130 less AND still make a profit.
I think we are being ripped off big time.
Best way to show local dealers is buy elsewhere.
Cheaper, reasonable prices mean more can purchase, more production, higher turnover, more profit, everybody happy.

Merry Christmas everybody.
Baz

qujibo · « **Reply #9 on:** December 04, 2011, 08:35 »

Who likes paying retail price for something? Before I bought my etrac I went to the local dealer. He wouldn't drop his price at all and actually told me that minelab don't allow them to sell them for less. I rang minelab and they said that wasnt the case. I ended up buying from America for $300 delivered less than local. Of course I would like to support local business but my hard earned money is better in my pocket than someone else's.

Adrian ss · « **Reply #10 on:** December 04, 2011, 08:37 »

Yes that is a mystery, He must be cutting his costs by some means which can partly be achieved through not having to personaly handle the items in any way and by not supplying an full 2 year P & L Australian warranty and local repair facilities.

Also when quoting US RRP that you include their sales tax which is not shown in the displayed RRP.

willy46 · « **Reply #11 on:** December 04, 2011, 10:04 »

I think it's the opposite. About 75% of my business comes through the Internet. I started up over 12 months ago & my business has continued to grow. It's been an experience with some good lessons learnt. I offer discounts where & if I can. Honesty & service play a big part. If I can't do a better price there's a reason why & that explanation is passed on.

AT Pro Guy · « **Reply #12 on:** December 04, 2011, 12:17 »

one thing i do appluade you for is selling a aussie product, brad you got the aussie sand scoop on your site and that is a positive.
nugget tech and coiltek are west and south aussie respectively made coils. maybe try selling both of them, i know they more for minelabs but their is a market in the victorian golden triangle for both.
i do keep eye out for aussie products,
https://www.nuggettech.com.au/eshop/pages/About-Nugget-Tech.html

TeeJay · « **Reply #13 on:** December 11, 2011, 19:55 »

Quote from: qujibo on December 04, 2011, 08:35

Who likes paying retail price for something? Before I bought my etrac I went to the local dealer. He wouldn't drop his price at all and actually told me that minelab don't allow them to sell them for less. I rang minelab and they said that wasnt the case. I ended up buying from America for $300 delivered less than local. Of course I would like to support local business but my hard earned money is better in my pocket than someone else's.

Thats an interesting post qujibo. I did the rounds in Australia to purchase my Minelab Det. Most answered and some did not answer my email. However when I contacted several in the US the ones that answered said they were not allowed to sell to Australian customers. So much for free trade !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Purchased the Detec. locally who was the cheapest and a great person to deal with. Was going to take the matter further but decided to drop the issue and get on with detecting.

And yes another thing re proffits. I too had a very good small business selling world wide but the dealers and resellers in Australia required a large % dealers discount which ended up myself getting 60% less for the product I manufactured than they did. I took all the risks and hassels making the product. Go figure why people don't want to deal with Aussie shops/retail.

TeeJay

Buttsy · « **Reply #14 on:** December 11, 2011, 20:13 »

I got $100 off and some freebies when i did the minelab rounds...plus great local backup when something goes wrong. In the end the small saving and wait from the states wasnt worth it.

tasherlock · « **Reply #15 on:** December 19, 2011, 20:01 »

My feeling is if you want to live in Australia, live by Australian standards that unions have fought for and we all seem to be reasonably happy with. If you want to buy Chinese goods go and live in China and live by Chinese standards. It is wrong to buy goods while trying to live under the best of both worlds.

alimo88 · « **Reply #16 on:** December 19, 2011, 20:44 »

I wonder what would happen is you removed all non Australian products from your house?

Count Pierre · « **Reply #17 on:** December 19, 2011, 21:17 »

Exactly NOTHING would happen, Alimo.

We probably wouldn't have anything left in the house to live as we normally do.!

No electrical appliances like Tv, Stoves, jugs, toasters ,most of our clothes etc. etc......................The mind boggles!!

Good point.

alimo88 · « **Reply #18 on:** December 19, 2011, 21:37 »

Sorry can't reply. I threw my computer away

jarhead · « **Reply #19 on:** December 20, 2011, 07:51 »

read in the paper the other day where Australia is the highest priced country to live in, especially in car, house, grocery prices. wonder why that is? the news said it's from the high tax and tariffs the government over the years have built up.

i looked at one of my old pay slips from the states and i paid 15% tax on my pay. i look at my payslip now in Australia and i pay about 40% tax.

i buy all my books through the internet or through an australian book wholesaler. the price in normal stores is outrageous and that's why the big book salers are going out of business here. theres a thing called markup but some stores are basically robbing people with over 100% markups.

TeeJay · « **Reply #20 on:** December 20, 2011, 10:46 »

Quote from: jarhead on December 20, 2011, 07:51

read in the paper the other day where Australia is the highest priced country to live in, especially in car, house, grocery prices. wonder why that is? the news said it's from the high tax and tariffs the government over the years have built up.

i looked at one of my old pay slips from the states and i paid 15% tax on my pay. i look at my payslip now in Australia and i pay about 40% tax.

i buy all my books through the internet or through an australian book wholesaler. the price in normal stores is outrageous and that's why the big book salers are going out of business here. theres a thing called markup but some stores are basically robbing people with over 100% markups.

--------------------------

Spot on jarhead. I think some Aussie retail outlets are masters at markup ---not all though. I feel that the Minelab range of products are over priced but the aussie dealers have to comply to the RRP by the head office/manufacturer what ever and if you want the product you have to pay the excessive price for it.

TeeJay

werewolf · « **Reply #21 on:** December 20, 2011, 11:37 »

Exactly.

I have just bought a brand new Rickenbacker bass from the USA via a seller on eBay. Excellent service, communication and delivery time. Even with postage, GST, customs and quarantine fees I still saved $1000 on the Australian retail price. That's alot of money.

The internet is my first port of call whenever I'm in a shopping mood. Amazon UK is fantastic for books, CDS, DVDs etc with FREE postage over 25 pound.

WW

Rwork · « **Reply #22 on:** December 20, 2011, 18:03 »

I purchased a fridge element today at $42 plus freight.Seller to me had left label on from where he had got it. Used internet and located seller who will deal with me for $28 Also today picked up new iPhone 4 biggest gig for $500. Ebay sold yesterday for $850 and buyer pulled out due to freight waiting time concerns. Internet save me $300 plus just on phone.

ashhash · « **Reply #23 on:** December 20, 2011, 18:33 »

Yep I'm sick of paying through the nose due to some sort of misplaced loyalty to "local" business.

I do try, but as soon as I see $100+ differences... they can shove it.
I go online/ overseas/ both.

I'm not going to subsidize someones uncompetitive business with my pay cheque!

willy46 · « **Reply #24 on:** December 20, 2011, 18:49 »

I think Aussie business owners should wake up. I can understand the taxes etc we have to pay. But with some retail chains having mark ups of up to 300% it's crazy. Garrett have a small mark up & I mean small as do Fisher & Teknetics. I can't speculate on minelab as I don't deal in them. But as for us our mark up margin is minimal.
As for buying overseas, it's your choice and if you can get a better deal why not? All we can do is offer Australian warranties & Australian service.
But in a way I agree with you guys. Our taxes are nuts & that's the start of the price rise. But our unions have made our workplaces, our wages & our equality the way it is. China & America could only wish for what we have.