Franco wrote:Frankly my point is that talk is cheap. If it were so easy to undercut the existing retailers I would have done that myself.
As a matter of fact a mate of mine after having run one of the largest shops here for over 10 years left to start his own business. Guess what ? A laundromat..in fact 3.
Do you think that he did that because he loves the idea of having his own laundromat ?. No simply,(I asked..), he was not mad enough to risk his money in an industry that he knows all too well.
I can assure you that the same "we are getting ripped off" is repeated by buyers of most goods. Cameras, computers, cars, bikes, CD's, clothing...
so there are obviously only greedy and stupid people running retail shops here. Can't wait for some clever chaps to move in.
Franco
Franco
It is very easy - we need a dual level society where WE can keep our salaries, conditions, pensions etc and have an under class who will work longer hours for less money - known as the OTHERS. The OTHERS are critical to the WE class maintaining their standard of living.
In retail and service industries I can get cheaper products/consultancies elsewhere. Few industries are safe. Health services and operations are markedly cheaper in South East Asia. Legal and accounting services are being out sourced to India. Testing goods against standards is starting to be outsourced to other countries. I am sure that there are many other examples of services that are or could be sent overseas.
Goods are cheaper over the internet. There are multiple reasons why local prices are higher. Is it high wholesale prices, high costs of opening a retail business, the costs of red tape? Or is it lack of competition(?), inefficiencies or stupid retail owners? I do not think it is simply uncontrolled greed or cartels. As Franco pointed out, many smart people have tried retail and failed.
We need to have the OTHERS to do all the donkey work for low reward and then WE can by cheaper. As Toni says, overseas manufactures should not be able to sign exclusive deals with local wholesalers so then retailers would be able to directly import. But then the wholesalers would go out of business.
I buy locally and on the internet. I just hope that we get a balance so that those little bits of money keep moving around the Australian economy so we all get some standard of living. Is there is an economist out there who can put these arguments in a more logical and better language it would be great.
Also we need get the balance right of local and overseas purchasing so we keep getting service with our goods in this country.
BTW my son is living in London at the moment - he can buy hiking boots much cheaper than us but his rent, food costs, transport costs are much higher than ours. What would you prefer? Can we cheer pick where somethings are cheaper overseas and ignore the other parts of their economy?
I fear there is no simple one line answer to this question of where we purchase. I am sure the market will sort out solution. I hope there is not too much damage in the process....
Penguin