Ranting about NZ retailers

[PeeJay]

Irrespective of this tax merry go round ( and the cost to business )that occurs there are several main points here:

1) Most if not all small businesses in NZ are struggling to maintain or achieve a reasonable operating surplus, because the cost of being in business is very high and you have to constantly jump through hoops. Many retailers are going to the wall and there will be more.

2) If a consumer pays gst as part of his purchase price when he buys goods from a store in NZ then why should he / she not have to always pay clearances and gst when the goods are imported privately? This is one of many reasons NZ businesses are disadvantaged in the current environment of open slather.

3) Its apparent that almost no-one cares that people are losing their jobs hand over fist in part because of this environment .

1) the first part of your statement has some truth in it, but the cost of doing business is not the whole reason. Not even the major part of the reason. Its the whyfores and wherefores of the way you are doing business. I guess a business like yours which relies on demand for a non essential/luxury imported item will always struggle when times are tough for your potential customers. You are in the same boat as most importers of non essential goods.

2) I guess its true in your mind, thats why you keep saying it.

3) One of the best drivers for domestic employment is a lower exchange rate.
But that would push you even closer to the wall.
But kiwi jobs would benefit.
What to do? how do I have my cake and eat it as well?
At least you would be sending less money offshore to support workers in Sweden, Japan, China, America, and instead that money would stay here and support Kiwi workers.
Which is what you want, isnt it?

inconsistency of tax collection and how it ADVANTAGES businesses

fixed it for ya

[jasonu]

Many Australian companies are also hurting and their exchange rate against North Mexico dollars is even less favourable.

Southern Canada if you don't mind...

[PeeJay]

Ive said it before but I think it worth repeating: It does not appear to me there is any will to lower the threshold, because for the Gubblemunt it is a straight cost-benefit analysis: How much will it COST to lower the threshold, vs how much will they BENEFIT, i.e. how much extra revenue will they receive. I am firmly of the opinion that Treasury will have crunched those numbers, if not recently, at least when GST was increased: because if ever there was a time to to do it, that was it. I think we can infer therefore that there is no will to do it, at present anyway.

The only way that might change is if the retailers are successful in their campaigns: but given they were not successful in banning parallel importing, I suggest it is unlikely. Maybe if it becomes an election issue next time round?

Total agreement. Fiddling with GSt etc isnt going to save anyone. There has to be a fundamental change in the way people do business, taking into account modern technologies.

In NZ we already have one of the lowest business compliance cost regimes in the western world (despite RT )
GST is one of the simplest consumer taxes in the world

My way of looking at it, if your business isnt working, first place to look is in the mirror.
Ask yourself why I am doing this?
Many business's fail in NZ because a pragmatic business approach is overshadowed by the ego of the owner. They will run it till there is nothing left, blame all and sundry for their demise, except themselves of course.
On the other hand some business's flourish because of the owners ego, not too many though.

Basically if it isnt working and you cant make it work, do something else.

But if all you have left is blaming the govt, blaming people for not buying from you, blaming whoever, you are on your way to the crapper

[Edbear]

Total agreement. Fiddling with GSt etc isnt going to save anyone. There has to be a fundamental change in the way people do business, taking into account modern technologies.

In NZ we already have one of the lowest business compliance cost regimes in the western world (despite RT )
GST is one of the simplest consumer taxes in the world

My way of looking at it, if your business isnt working, first place to look is in the mirror.
Ask yourself why I am doing this?
Many business's fail in NZ because a pragmatic business approach is overshadowed by the ego of the owner. They will run it till there is nothing left, blame all and sundry for their demise, except themselves of course.
On the other hand some business's flourish because of the owners ego, not too many though.

Basically if it isnt working and you cant make it work, do something else.

But if all you have left is blaming the govt, blaming people for not buying from you, blaming whoever, you are on your way to the crapper

That is true to a point, but not reflective of the WFC. The market has contracted hugely as people stopped spending. People were way overcommitted and deep in debt and the chickens came home to roost. The number of Mortgagee sales is proof of that. Everything has gone up in price, especially the basics, (food, power, fuel), and wages have remained stagnant. There simply isn't the disposable income anymore for non-essential spending.

Witness the trouble Nick Cole is having and the others trying to raise sponsorship. There is large gap between what people want and what they can afford. Everyone would love to get RT to sort their suspension, but how many can actually afford it? Robert, and others like myself, can only go so far to reduce the end cost. My advantage is everyone needs a battery and the Shorai are better value for money even though a bit more to buy initially. You can still ride without Ohlins suspension.

[Headbanger]

All this propaganda and yet I still don't want a Shorai battery or ohlins suspension, But at least the names getting out there aye.....

[HenryDorsetCase]

All this propaganda and yet I still don't want a Shorai battery or ohlins suspension, But at least the names getting out there aye.....

Actually, as a very happy user of both, and a retail paying customer, I am happy to recommend both unreservedly.

[imdying]

Actually, as a very happy user of both, and a retail paying customer, I am happy to recommend both unreservedly.

Yeah, but you can get both cheaper overseas... funny thing is, only Robert adds value. Still if your overseas Shorai dies, that god bothering piece of shit still has to replace it

[Headbanger]

Actually, as a very happy user of both, and a retail paying customer, I am happy to recommend both unreservedly.

And I own a nice pair of shoes

I can only wish them both continued success, But these threads are overtly manipulated by both in order to promote their endeavers, which may make them the smart ones, Through Rob could do with a tissue.

Anyone would think operating a business was meant to be easy.

[FastFred]

Its certainly not Peejay who has been making shit up.

SS you were happy to abuse others so I am calling you on it.
SS90 You were wrong about GST in a way you shouldn't have been given your claimed industry background.
So I guess your just another meaningless net troll who is either really stupid or your pants are on fire, liar liar.

I stand by what I said ......

you confirmed how easy it is to act like a child.

There are still a number of successful Scooter businesses around and I hear SS90 was involved in one, but that one went tits up some time ago, the word on the street is, the owners childish ego brought it down, proving that consumers have a choice.

Edbear confirmed how complicated it all is

GST no not at all .....

Edbear confirmed that GST is recoverable. SS90 was adamant it wasn't, tried intimidation to win his point and became abusive when challenged.

Now, I think SS90 has shown that, that won't get you anywhere in business but RT you are free to prove me wrong if you like.

GST is one of the simplest consumer taxes in the world

Agreed

[Bassmatt]

Therein lies the problem, or issue. I tried to keep the retail price within reason of the US MSRP, so took the MSRP and added freight and GST to give me a base for structuring the business. I also tried to give my dealers a decent margin and gave them somewhat more than they would get from other battery suppliers as the technology was new and untested here, so encouraging them to actively market Shorai, making my margin to them as low as I could go and lower than my accountant thought was ideal. I cannot offer my dealers any better price without going out of business.

Bear in mind that my prices are artificially low and not reflective of the usual situation where the business has a lot more infrastructure to pay for which would require the batteries to be about double the current RRP.

I have looked at the price of one shorai battery (excluding freight) from their USA website and compared the same battery from the NZ (yours i presume) website.
In round figures its US$160 excluding freight vs NZ$250.
From my experience buying other products from the US i would expect freight (for a single battery, to me) to be minimum of US$50
At the current exchange rate that works out pretty darn close to the NZ price, and if freight was say $70 I'd be better off buying it here.
Dare I say it, but I think your selling them too cheap Ed.
If I was determined to have a shorai I'd pay NZ$350 to you before I even considered importing my own.
Yeah I know you're still building a market for them and your not making much money, but it does beg the question to the other importers ....if you can do it, why can't they?

[FROSTY:Me]

Once again a pimply wnake roof a teenager gets it wrong

GST on imported vehicles is not recoverable.

Go one then smart ass, start a company, import vehicles into New Zealand and claim back that GST payment, go on, prove me wrong.
If you followed the link I posted a few back, you will see the words on the customs site, GST on imported vehicles IS NOT RECOVERABLE.

Sorry mon I have to step up to the plate here on this one.
My credentials ON THIS SUBJECT. I am the owner of a car dealership that specialises in importing used cars. we import roughly 20-30 cars a month.
When a car arrives in the dealership before any work is done the following applies.
Zero rated -which is the freight
17.5% gst on the port charge
17.5% of the locked exchange rate on the PURCHASE PRICE including agent fees.
So for example
A car with car cost of y250000
Agents fees y85000
Total cost Y335000
Freight $1500
Port fees $95
So of the cost Y335000 (based on exchange of 60)I pay gst on $5583.34. I pay 17.5% customs gst on the nz$paid which is $837.48 and about $15 for port fees.(too lazy to do exact number)
The $837.48 customs gst and $15.00 port gst I claim back every two months from IRD.

For this exersize I wont muddy the waters with the customs gst guys locking for 10 working days at an exchange rate so we will assume gst is calculated "live"
This is not hypothetical drawn from a website this is what I deal with on a day to day basis.

[FastFred]

As usual, we have a teenager with no experience thinking he knows everything once again. You are, of course, as always, wrong. GST on imported vehicles is not recoverable

Once again a pimply wank poof teenager gets it wrong, GST on imported vehicles is not recoverable. Go on then smart ass, go on, prove me wrong. GST on imported vehicles IS NOT RECOVERABLE.

For this motor vehicle importer, GST paid to Customs is recovered by claiming it from the IRD bi monthly against GST owed to them from sales. A not to difficult accounting concept to understand.

The $837.48 and $15.00 I claim back every two months.

So there it is SS90, it turns out that I was right and you were wrong.

And SS90 you didn't have to buy a fight with me over GST, but you did and in spite of your abuse, lies and intimidation this School Boy trumped you. ....

Yep and all it took was a little research and some intelligence.

Now I think I can see a commerce degree beckoning me. So when I graduate I will import myself a scooter and you can service it for me.

[Edbear]

All this propaganda and yet I still don't want a Shorai battery or ohlins suspension, But at least the names getting out there aye.....

Hey, advertising is expensive...

Sorry mon I have to step up to the plate here on this one.
My credentials ON THIS SUBJECT. I am the owner of a car dealership that specialises in importing used cars. we import roughly 20-30 cars a month.
When a car arrives in the dealership before any work is done the following applies.
Zero rated -which is the freight
17.5% gst on the port charge
17.5% of the locked exchange rate on the PURCHASE PRICE including agent fees.
So for example
A car with car cost of y250000
Agents fees y85000
Total cost Y335000
Freight $1500
Port fees $95
I wont muddy the waters with the customs gst guys locking for 10 working days at an exchange rate so we will assume gst is calculated "live"
So of the cost Y335000 I pay 17.5% customs gst on the nz rate So I pay gst on $5583.34 which is $837.48 (based on exchange of 60) and about $15 for port fees.
The $837.48 and $15.00 I claim back every two months.

This is not hypothetical drawn from a website this is what I deal with on a day to day basis.

That's what I was trying to say but didn't know how it works for vehicles, thanks for that!

I have looked at the price of one shorai battery (excluding freight) from their USA website and compared the same battery from the NZ (yours i presume) website.
In round figures its US$160 excluding freight vs NZ$250.
From my experience buying other products from the US i would expect freight (for a single battery, to me) to be minimum of US$50
At the current exchange rate that works out pretty darn close to the NZ price, and if freight was say $70 I'd be better off buying it here.
Dare I say it, but I think your selling them too cheap Ed.
If I was determined to have a shorai I'd pay NZ$350 to you before I even considered importing my own.
Yeah I know you're still building a market for them and your not making much money, but it does beg the question to the other importers ....if you can do it, why can't they?

The only reason I can is because of very low overheads but yes, they are too cheap. However I don't want to upset the apple cart by imposing a price rise on my dealers just when they are starting to increase sales and profile. This is where the current exchange rate is in my favour as if the dollar were to drop by much I don't have any "fat" to absorb it.

[bogan]

Hey, advertising is expensive...

And by saving on advertising, my batteries get cheaper

[FROSTY:Me]

SS90 one way you may be getting confused is that NZ customs GST is not calculated "live"
Its called customs gst for that very reason.
So for example I might buy some cars at an exchange rate locked up at 67 but customs current rate at that time might be 60
I pay 15% calculated on the exchange rate THEY have locked.(60)
So you see it has to be based on whats PAID not on a simply calculated figure based on 15%. So It MUST be seperated from "normal" gst