Why don't we pay GST on imported stuff?

[JimO]

or welcome to going out of business in New zealand

[Howie]

o i see, but you lot expect them to sell the product at cost plus fuck all cos thats what you pay for it and i can buy it on ebay for that and your just a robbing cunt

Nope. I expect them to sell a product at a competitive price. AN extra 100% is not competitive. The current NZ Retail Business model needs to become more efficient to combat the ease of overseas purchase. If the difference in price was the 15% GST a lot of people wouldn't bother with online shopping overseas. However when the difference in price is up around 100%, and you get a yes we can have that here for you in 6 weeks then my money is going to the market where I get the product cheaper, and in a week or two at the most.

Just like the Manufacturing industry has been annihilated in NZ by cheap imports it is now the turn of retailing, So retailers either need to become competitive in a Global market place or face the alternatives.

Here's a link to a recent article in the Dominion Post. A pair of shoes $229 at Rebel sports, or NZ$143 from United States-based Foot Locker. We are a low wage ecconmy so guess where I'd spend my money if I was after them.

[JimO]

Nope. I expect them to sell a product at a competitive price. AN extra 100% is not competitive. The current NZ Retail Business model needs to become more efficient to combat the ease of overseas purchase. If the difference in price was the 15% GST a lot of people wouldn't bother with online shopping overseas. However when the difference in price is up around 100%, and you get a yes we can have that here for you in 6 weeks then my money is going to the market where I get the product cheaper, and in a week or two at the most.

Just like the Manufacturing industry has been annihilated in NZ by cheap imports it is now the turn of retailing, So retailers either need to become competitive in a Global market place or face the alternatives.

Here's a link to a recent article in the Dominion Post. A pair of shoes $229 at Rebel sports, or NZ$143 from United States-based Foot Locker. We are a low wage ecconmy so guess where I'd spend my money if I was after them.

i doubt any NZ retailers could stay in business no matter what the product was if a widget made and sold in Arsefuck USA cost $50 you expect a NZ retailer in NZ to sell it at the same cost at todays rate $61,oo plus the Gst. and run a shop, pay staff etc yer dreamin mate, anyway nobody is forcing you to buy local but dont complain when the local guy isnt there

[Coldrider]

There was a news item this week, the retailers are lobbying the Government to make banks tax collect the GST on overseas sales on the credit card transaction. The banks want nothing to do with it .....at this stage.

[Howie]

i doubt any NZ retailers could stay in business no matter what the product was if a widget made and sold in Arsefuck USA cost $50 you expect a NZ retailer in NZ to sell it at the same cost at todays rate $61,oo plus the Gst. and run a shop, pay staff etc yer dreamin mate

Nope I'm realistic, NZ has a low wage economy by international standards. Because of that Most people are going to try to shop smarter. So just like other sectors of the NZ economy the retail sector needs to get more competitive or understand that it is going to become smaller. I don't have the answer to the problem, but it is bigger than the 15% GST on smaller purchases. Like it or not online purchasing local and international is here and it appears to be growing steadily. So the retail sector needs to react to that to remain competitive and keep market share or accept it is going to get smaller. Of course Online international sales also affect the importers, and wholesalers. The answer is probably for all three Importers, wholesalers and retailers to look at how they can increase there productivity and reduce costs then pass those savings on to consumers by reducing retail prices.

[Coldrider]

Nope I'm realistic, NZ has a low wage economy by international standards. Because of that Most people are going to try to shop smarter. So just like other sectors of the NZ economy the retail sector needs to get more competitive or understand that it is going to become smaller. I don't have the answer to the problem, but it is bigger than the 15% GST on smaller purchases. Like it or not online purchasing local and international is here and it appears to be growing steadily. So the retail sector needs to react to that to remain competitive and keep market share or accept it is going to get smaller. Of course Online international sales also affect the importers, and wholesalers. The answer is probably for all three Importers, wholesalers and retailers to look at how they can increase there productivity and reduce costs then pass those savings on to consumers by reducing retail prices.

+1, Manufacturers and Processors are sourcing cheaper materials and ingredients, substituting for materials etc for price reduction across all levels of the logistics chain for increased profitability, so why should not the consumer do the same?

[Howie]

There was a news item this week, the retailers are lobbying the Government to make banks tax collect the GST on overseas sales on the credit card transaction. The banks want nothing to do with it .....at this stage.

A nice idea in concept, and Government might go for it as it puts the compliance onto Banks. presumably the banks can tell if the charge to the account originated in NZ or if the user was actually overseas at the time?

The first thing that popped into my mind with this was maybe I should set up an Australian credit card on my Australian Bank account next time I'm over there. However to me it is not about the minor 15% difference in price it is because it is 50%-100% cheaper on a lot of items.

[rustic101]

I won't buy into the argument of buying here or overseas as I do both. Its a question economy from my perspective. Yes it has risks but I'm willing to accept those.

Two areas which annoy me are; Poor/Inconsistent customer service, and the lack of on-line access. An example of each:

Purchased a new bike of a dealer and was offered a 10% discount. So far I've spent around $4600 on extras and not one of those extras has come from the dealer as what I want is not able to be discounted buy them. Take the GoPro Hero2 I just bought, I ended up buying it from RaceTec and got a good deal. I will continue to always go to the bike shop first and give them a chance, but its disappointing they see no value in my repeat business. Btw they are a good bunch of guys.

On-line access grates me, and its not just restricted to bike. Prior to buying I like to 'let the fingers do the walking' by searching the net. There are only three bike website that have a good level of content, most just have a wireframe. The content of the 'good ones' is so bloody misleading/ out of date its not funny. I joined one a number of years ago and was entitled to a good level of discount made a purchase and the item was faulty and took me bloody ages to get it replaced. I compare that to an overseas on-line purchased I made that the product had a fault and it was replaced in just under two weeks. The guy even threw in a freebee to say sorry.

Personally I think the NZ bike industry needs a boot in the arse and to wake up. A fair days trade for a fair days dollar, but more importantly modernise your business and attitude towards your customers.

My 5c...

[Coldrider]

The first thing that popped into my mind with this was maybe I should set up an Australian credit card on my Australian Bank account next time I'm over there. However to me it is not about the minor 15% difference in price it is because it is 50%-100% cheaper on a lot of items.

The retailers think that the GST is going to solve their problems, because they can't fix the major price gaps that are causing the overseas purchases in the first price. They'll just stick their head in the sand over that one.

[Robert Taylor]

The retailers think that the GST is going to solve their problems, because they can't fix the major price gaps that are causing the overseas purchases in the first price. They'll just stick their head in the sand over that one.

GST wont fix the problem but it would expunge one inequity and god only knows the Government can do with more revenue on what its missing out on. Yes retailers ( not only in the motorcycle sector ) often need a good boot in the backside. 100% markup on especially big ticket items,........... if only! If I had 100% markup on suspension units Id be dead in the water

In many cases what was wholesale is the new retail, just so you have any chance against the net. Certainly in our case the greatest percentage of our sales are direct and if Im cynical about it many retailers are simply just taking the order ( the customer has done the research ) and clipping the ticket. Try as I might I cant get any dealers to both have stock and provide backup to the standard we would expect, it is perhaps in part because they are wary of the difficulty of selling product with a traditional second markup, wholesale to retail. In certain industries like mine youve got to be very wary of impartingtoo much knowledge as too often you are training competitors that will end up undermining you in such a small market.
On the flipside it would be nigh impossible for counter staff to be proficiently conversant in every single product line on the worldwide web.

But also the effect of currency is major and shouldnt be underestimated. If our exchange rate against $US was more like 55 to 60 cents this thread probably wouldnt have started. That is especially true if the manufacturing source of the product isnt through the US.

The US has been a land of flatulence and excess for too long, and that is why as much as is possible and realistic I prefer to put money for personal items back into local retailers, who in turn put that money back into our local economy, or what is left of it. Rather than ( tongue in cheek ) to fat people driving pickup trucks! But yes, local retailing needs to radically change to challenge this insidious reality. But again be fair guys, not all retailers are tarred with the same brush.

[Jantar]

I'm watching the Sunday program on cheap chinese copies. It looks like you can get very cheap Ducati parts as long as you are happy for them to be spelt Dukati.

[Edbear]

I'm watching the Sunday program on cheap chinese copies. It looks like you can get very cheap Ducati parts as long as you are happy for them to be spelt Dukati.

You can get cheap Chinese batteries too if you don't mind buying them frequently and having them catch fire and blow up occasionally...

I have a few Chinese tools such as a skil-saw, drill and jig saw and they work well for what I use them for but if I were a tradesman using them daily I would not consider them at any price.

Where concerns over personal safety arise, choose reliability and quality over cost every time.