JB HiFi - Supplier to reduce cost or adopt “direct import model”
glynd
Melbourne, Victoria
404 posts
http://www.kotaku.com.au/2011/10/jb-hifi-if-we-have-to-go-to-a-direct-import-model-we-will/
"JB Hifi Chairman Patrick Elliott, responding to a question at its annual general meeting, has claimed that when it comes to the sale of goods in its stores, it is prepared to go to a “direct import model” if suppliers don’t reduce the cost price of their goods.
With the increase of online shopping, retailers are becoming increasingly protective of their market. GameTraders has been grey importing stock from Europe, and we can only assume that JB Hifi’s threat amounts to the same thing – bypassing local distributors for cheaper cost prices.
“It remains open to JB Hi-Fi to import directly and bypass suppliers,” stated Elliott.
GAME’s Managing Director Paul Yardley mentioned a while back that moving to grey imports was a possibility, but stated that he’d prefer to develop the local industry as a whole. Game Traders on the other hand has taken to the grey imports market to compete with big outlets such as Big W.
JB Hi-Fi to put pressure on suppliers to lower prices"
Nothing will probably come of this but good on them. Hopefully it will start a chain reaction to stop Australian's getting price gouged.
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Scooter
Brisbane, Queensland
4992 posts
Great.
This is what they should have been doing for a long time.
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Outlaw
Gold Coast, Queensland
747 posts
How much pull does Chairman Patrick Elliott have?
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Sc00bs
Brisbane, Queensland
7972 posts
iTOM
Brisbane, Queensland
1137 posts
ha, JB might source products for cheaper, but they will sell for for the same price or slightly less. the savings for both parties will not be in perspective
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trog
AGN Admin
Brisbane, Queensland
34843 posts
ha, JB might source products for cheaper, but they will sell for for the same price or slightly less. the savings for both parties will not be in perspective uh, presumably they're doing this because they're sick of having assholes like us walk in there and tell their salespeople we can get it for half price online.
So, assuming they don't have their heads completely up their ass, they will be doing what they can to be competitive on pricing - which is the entire point.
The big question I have is - why the fuck did it take so long for this to happen? Why, as soon as the dollar hit parity, were they happy to sit there and still sell stuff for 2x as much as overseas partners?
Retailers are the ones that are obviously going to get screwed long term here. Why are these guys not constantly stomping on their first party suppliers to get shit at reasonable prices?
The only reasons I can think of are:
- they're no longer relevant and have no pull with suppliers, who don't give a shit
- Australia is too small for suppliers, so they don't give a shit
- they're all completely oblivious to it and don't give a shit and have only noticed because now it's seriously affecting their bottom line
- they're lazy
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Mordecai
Victoria
1088 posts
- they're all completely oblivious to it and don't give a shit and have only noticed because now it's seriously affecting their bottom line
I have to go with this. Profits are down so they have to pull finger and try something to keep them up.
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Nathan
Canberra, Australian Capital Territory
3826 posts
With economies of scale, things are seriously broken when we can buy things as individuals from overseas cheaper than large corporations can get them locally.
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Sc00bs
Brisbane, Queensland
7973 posts
Australia is too small for suppliers, so they don't give a shit
this seems a bit out there dont you think? What size country would justify cheap games? NZ is smaller than us and they get much cheaper games
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thermite
Brisbane, Queensland
8350 posts
I don't get why retailers bitch about not being able to compete with online retailers.
If I can get it cheap, why can't they get it cheap also, and buy in bulk to save on shipping? (which I cannot do)
Simple.
I suspect it's because they aren't about that, they're about supporting the whole traditional chain of supply, and about keeping their margins high. They're so used to that there's no way they'd switch to a model like umart, who are selling the very hardware people use to do online-shopping - but they're successfully doing it IN A STORE.
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skythra
Brisbane, Queensland
4565 posts
If they do this and they provide games/movies/music well below prices of other stores, they'll get pretty much 100% market share until the other companies do the same.
There would be no reason to hold the higher prices when they can instantly create full market share for the same profit margins.
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deadlyf
Queensland
2110 posts
I went into that new Bunnings clone that Woolworths have opened (can't remember the name of the store). They had exact same models of tools hundreds of dollars cheaper than Glenfords and even some of their retail prices on trade equipment was cheaper than the prices from wholesalers. They are basically around the same prices as you'd see on those ebay store fronts that import from HK.
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dranged
Melbourne, Victoria
1925 posts
Is it really the suppliers? The margin that JB has on the consumer goods I've price checked (cameras, 5:1 speaker systems, tvs) is simply decadence. They are supposed to be the bargain guys, from where I sit it's a very comfortable jb v good guys v harvey normans oligopoly as far as I can see.
IMHO they are the next blockbuster, still profitable, of course we can't buy TVs direct (altho kogan might help on that), but everything else is fair game.
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ravn0s
Brisbane, Queensland
13514 posts
I went into that new Bunnings clone that Woolworths have opened (can't remember the name of the store).
masters
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`ViPER`
Brisbane, Queensland
4043 posts
they're all completely oblivious to it and don't give a shit and have only noticed because now it's seriously affecting their bottom line
I reckon its close to this, they just haven't given a shit because why does it matter to them how much it costs, it only matters how much margin they put on it.
And if they buy things cheaper, it probably just means they are going to have less $ margin as they usually work on a % margin.
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Dazhel
Gold Coast, Queensland
4042 posts
Talk is cheap, Mr Chairperson.
Nothing to see until they either action change in their suppliers or pull the pin & start ordering directly.
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SquarkyD
Brisbane, Queensland
6152 posts
The big question I have is - why the fuck did it take so long for this to happen? Why, as soon as the dollar hit parity, were they happy to sit there and still sell stuff for 2x as much as overseas partners?
I will comment from my perspective (pro audio) - importers/distributors often buy the currency in bulk and trade on the currency they have 'in stock' and calculate their margins accordingly, this is why we don't see the price drops happen instantly, they need to filter down from the importer, to the retailer, who will mark up their stock based on a margin.
In my industry at least there has been a big push to make grey importing irrelevant by lowering RRP's and getting the product to a point where we can match overseas pricing. And for the most part we are close, but a lot of that has come from RRP's coming down by a lot more than our margin came down by.
Retailers are the ones that are obviously going to get screwed long term here. Why are these guys not constantly stomping on their first party suppliers to get shit at reasonable prices?
We are, constantly, and for the most part succeeding but it really is a case by case basis on who's product is involved, those with controlled distribution chains are still gouging Australia for whatever reason they feel necessary.
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XaltD
Queensland
883 posts
Well, to be honest, JB all ways pass the discount on to the customers. iTom is way off.
The PC Games industry has shrunk from a retailers perspective for exactly what Trog said and i have seen the reduction in bay allocations to the titles over the past 3 to 4 years down to bare minimum.
Hopefully something can be done and being able to purchase locally and support Australian companies like JB Hi Fi (and others) will be doable.
Fantastic move!
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ravn0s
Brisbane, Queensland
13516 posts
even if jb sold games for $5-$10 more than ozgameshop, i would buy from them instead of waiting 2 weeks for the game.
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even if jb sold games for $5-$10 more than ozgameshop, i would buy from them instead of waiting 2 weeks for the game.
Second that, I still have no clue the reason behind using Australian suppliers if it continues to rip off consumers. There's no reason for big company such as JB to use Australian suppliers. Import directly from the source, save $ and increase in sales due to offering competitive prices. No brainer
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Fixah
Brisbane, Queensland
6511 posts
even if jb sold games for $5-$10 more than ozgameshop, i would buy from them instead of waiting 2 weeks for the game. Or you could just buy from me and only wait up to 6 days, max, because I can afford to express ship, Ozgameshop can't. You'd be supporting your local Fixah Industries but then again i import as well so whatever floats your boat.
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Tollaz0r!
Brisbane, Queensland
11726 posts
even if jb sold games for $5-$10 more than ozgameshop, i would buy from them instead of waiting 2 weeks for the game.
Same, above $10 though and I'll start looking at importing.
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TiT
Brisbane, Queensland
4466 posts
fixah i like your industries because you dont make any money on it... eg bf3
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They probably do the pricing they do cos they are a business and like to make money.
When they stop making as much money, they change to suit the climate.
you know - like every other successful business in history.
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iTOM
Brisbane, Queensland
1138 posts
ha ha, yeah let's all buy the big next release from fixah - who will make a loss again lolol
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mission
Brisbane, Queensland
7994 posts
There's no reason for big company such as JB to use Australian suppliers. Import directly from the source,
It is a bit more complicated than it sounds and it generally exposes the direct importer, in this case JB HiFi, to greater risk.
Reasons that come to mind are:
Warranty – usually when you direct import you become liable for warranty. Depending on the contract with the os suppliers, you may have some recourse on faulty goods but obviously this is far more involving than just chasing up the local supplier. This may be different in different industries but when I worked at a furniture retailer years ago we imported some product direct and we had to honour any warranty claims from our stock and then chase the supplier. Some times the cheaper direct import prices include an allowance for faulty stock – so bad luck to importer.
Inventory Control – harder to control as the lead time from order to delivery is quiet long and the when the stock does arrive it usually involves significant warehousing (and therefore warehousing costs) and redistribution, you have to store the stock from shipping containers some where.
In the end there are many reasons that there are middle men when it comes to importing as it’s generally more complex than it would seem.
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Fixah
Brisbane, Queensland
6512 posts
Yeah unannounced price change didn't make that order a financial success for me personally, but that wasn't the point of it it anyway, otherwise i could've easily cancelled the order or upped the price. It just goes to show i put you guys first before the $!!!
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It is a bit more complicated than it sounds and it generally exposes the direct importer, in this case JB HiFi, to greater risk. Reasons that come to mind are: Warranty – usually when you direct import you become liable for warranty. Depending on the contract with the os suppliers, you may have some recourse on faulty goods but obviously this is far more involving than just chasing up the local supplier.
JB Hi-Fi is a publicly listed company and is top retailers in Australia hence it can take some "risk", I will mention that the risk is minimal and statistically speaking, there are less than 0.0000001% of receiving faulty products. Profit and other advantages outweighs the minimal risks.
This may be different in different industries but when I worked at a furniture retailer years ago we imported some product direct and we had to honour any warranty claims from our stock and then chase the supplier. Some times the cheaper direct import prices include an allowance for faulty stock – so bad luck to importer
In a serious note, statistics indicates that there are only minimal risk of receiving a faulty merchandise, For example, JB would receive only 1 or 2 faulty games out of 10,000 games they import. It is not a big issue and the delivery prices and game prices If retailers buy it bulk. My friend who owns couple of games store purchase is directly for $25 per game If he buy 100+ items. JB's bigger and would require items over 100, and discount will increase as orders increase.
Inventory Control – harder to control as the lead time from order to delivery is quiet long and the when the stock does arrive it usually involves significant warehousing (and therefore warehousing costs) and redistribution, you have to store the stock from shipping containers some where. In the end there are many reasons that there are middle men when it comes to importing as it’s generally more complex than it would seem.
JB has couple of warehouses in Sydney and have ample space to store "GAMES", which don't require a large amount of space. I wold definitely recommend JB to import directly, only idiots purchase game for $100+ these days.
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there are less than 0.0000001% of receiving faulty products
citation needed.
0.0000001% = 1/1,000,000,000 or 1 in one billion. somehow i think the incidence of faulty goods is likely to be higher than 1 in a billion.
JB would receive only 1 or 2 faulty games out of 10,000 games they import.
1/10,000 = 0.0001 or 0.01%.
which one is it, 0.0000001% or 0.01%?
i'm inclined to believe that you're making these numbers up and have absolutely no idea what you're talking about.
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citation needed
O ye, of little faith
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trog
AGN Admin
Brisbane, Queensland
34855 posts
We don't do faith here; if you're providing numbers to back up your point - especially if you're calling them statistics - you sort of can't expect people to take them on faith.
I would say JB have actually done the numbers previously and determined that the risk outweighs the benefits - because until fairly recently most Australians have been happy to walk in to a store and pay whatever the price was. Now they know they can get it 2x cheaper overseas, suddenly the risk equations have changed for them, so they need to recalculate.
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mission
Brisbane, Queensland
7995 posts
My post was refering to general importation of a variety of goods JB might sell like TV's, stereo, laptop, portable electronics, gaming consoles etc not just games :/
I will mention that the risk is minimal and statistically speaking, there are less than 0.0000001% of receiving faulty products
lol What sort of products? How many times have you returned an item to a store? Based on that 'statistic' no one would ever have to return anything. Ever. For many lifetimes. last edited by mission at 14:17:28 14/Oct/11 |
Tiny
Brisbane, Queensland
2914 posts
I fucken told you the suppliers were ripping them off. They won't sell it for the same price, they will drop it. They wouldn't announce this and not reduce some prices...
ha, JB might source products for cheaper, but they will sell for for the same price or slightly less. the savings for both parties will not be in perspective
That's a huge assumption right there. Wait and see what they do before you go jumping to conclusions. |
From past experience, retailers are greedy, their aim is to maximise the profits by exploiting customers through jacking up prices. Hence HN, Myer, DJ, and other retailers were able to increase their profits each year by over 5% until Australian currency was parity with US currency.
Retailers conitnue to whine that consumer spending have decreased due to GFC, but this is simply a false statement, online sales have increased dramatically by 37.9% last year, majority of customers are not retarded thereforce they avoid retailers like the black plague. Nobody likes to get ripped off, Australia is the only country in the world that sells new realase game for over $100, mean price is $55. I highly doubt that either JB or EB are paying more than $30 per game, they are just trying to maximise their profits by jacking up prices.
These method will not be viable in the long run, although JB's prices are usually $10-20 cheaper than EB, but their prices are still not competitive online. It's a simple math, sell 300xNew release game @ $60, making $9,000, or sell 25xNew release game @ 100 and make $1750 (considering that they spend $30 per game, no way in hell that they are spending over $30). It's a no brainer, but greeds always triumph over simple logic. They only think about the present and are not aware of the consquences and the impact in the future. If retailers fail to provide competitive prices, they will be left behind.
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mission
Brisbane, Queensland
7996 posts
ha, JB might source products for cheaper, but they will sell for for the same price or slightly less. the savings for both parties will not be in perspective
That's a huge assumption right there. Wait and see what they do before you go jumping to conclusions.
I don't think it's unreasonable to assume that JB won't pass on the full saving of importing directly, and they have zero obligation to do so. They are business that is there to make money and take/make any oppotunities they can to increase profits.
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iTOM
Brisbane, Queensland
1141 posts
JB will only become competetive to EB, Game and DSE. they know people want games straight away, and will leverage that with high prices
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mission
Brisbane, Queensland
7997 posts
So you think dropping the price 40% will increase sales 1,200%?
What business work/managing experience do you have btw?
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hardware
Brisbane, Queensland
9566 posts
You'd need more like a 70-80% drop in price to see a 1200% increase in sales - and you'd need to ensure it's an OCAU feeding frenzy (ref microservers, hp tablets etc)
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So you think dropping the price 40% will increase sales 1,200%? What business work/managing experience do you have btw?
I am a day-trader and manage a portfolio with an astronomical figures, do you know why online sales have increased by 37.9% last year while retail sales have decline by 1.4% last year? The answer is simple, online markets offer competitive prices, consumers don't like to get ripped off by retailers. Australian business model was solely based on exploitation of compulsive consumers who purchase products without doing any prior reseach on that product. Now time have changed, ppl are more aware of their options and they've beginning to realise that they've been getting ripped off for a long period of time.
The most important factor is to re-establish trust between consumers and retailers by providing competitive prices instead of trying to maximise the profit through jacked up merchandise. According to the research done by Dr. DiTella, R. from Havard University, 94.6% of consumers prefer to shop at a walk-in store rather than online store if both stores provide equivalent for price for the same product. Consumers will return to walk-in stores and they will spend money onshore rather than offshore. Australian retailer failed to recognise this simple methodology due to greed.
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I am a day-trader and manage a portfolio with an astronomical figures
being proficient at short-term trading of securities provides next to zero of the skills or experience required to run a business effectively. if you honestly think that being a day-trader gives you any sort of authority when commenting on subject like this then you are utterly deluded.
also, a drop in price of 40% causing a 1200% increase in demand would imply a price elasticity of demand of 30 [PeD = % change in Q/% change in P = 1200/40] which would imply that video games are atronomically sensitive to movements in price. this would imply that for every 1% drop in price there would be a corresponding 30% increase in demand.
i suspect that you're talking out of your ass and making up numbers again.
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trog
AGN Admin
Brisbane, Queensland
34868 posts
I am a day-trader and manage a portfolio with an astronomical figures, do you know why online sales have increased by 37.9% last year while retail sales have decline by 1.4% last year? The answer is simple, online markets offer competitive prices, consumers don't like to get ripped off by retailers. Australian business model was solely based on exploitation of compulsive consumers who purchase products without doing any prior reseach on that product. Now time have changed, ppl are more aware of their options and they've beginning to realise that they've been getting ripped off for a long period of time.
The most important factor is to re-establish trust between consumers and retailers by providing competitive prices instead of trying to maximise the profit through jacked up merchandise. According to the research done by Dr. DiTella, R. from Havard University, 94.6% of consumers prefer to shop at a walk-in store rather than online store if both stores provide equivalent for price for the same product. Consumers will return to walk-in stores and they will spend money onshore rather than offshore. Australian retailer failed to recognise this simple methodology due to greed. I don't think anyone is arguing that. I am not convinced it is greed, simply because of Hanlon's Razor - I think it is just as easy to attribute it to stupidity and ignorance rather than outright malice. I honestly believe many big retailers in Australia have been living in this nice protected bubble where they simply haven't had to even think about competition because they've had this pseudo monopoly thing happening where they were just making money hand over fist and never really understood that it was just because they were the only game in town.
Now there's alternatives and competition overseas, and they're SHOCKED to discover it and that they actually have to respond to it or they will suffer.
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Spook
Brisbane, Queensland
33218 posts
O ye, of little faith
its taggs motherfucker.
we have faith in taggs
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greazy
Brisbane, Queensland
5029 posts
Sasuke is Door is Truffle.
That or nerf.
By the way, astronomical figures are in the Nonillions (30 zeroes).
I agree with Trog, just look at Harvey Norman ads: "Buying Australan. Why? WHY NOT?". Because it's more expensive. Harvey seems completely oblivious to why buying overseas is even considered and can't even give a good reason to buy locally.
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being proficient at short-term trading of securities provides next to zero of the skills or experience required to run a business effectively. if you honestly think that being a day-trader gives you any sort of authority when commenting on subject like this then you are utterly deluded.
Obviously you haven't dealt with traders who make profits, I've yet to lose money in any sort of trades. Trust me, you have to be quiet knowledgable in all aspects to be a successful trader. Yes, I admitt that I've exaggerated to emphasise my point across to readers. Plus you failed to consider the variables such as popularity of the game, location, other titles that were released on the same month, media coverage and much more. If you consider all these factors, my examples are not that farfetched.
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I agree with you Trog, I know that greed isn't the only factor, but It is quiet infuriating to see folks like Gerry Harvey trying to impose a GST on online purchases and Australian retailers expect things to improve while doing nothing.
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Obviously you haven't dealt with traders who make profits, I've yet to lose money in any sort of trades. Trust me, you have to be quiet knowledgable in all aspects to be a successful trader.
i work in funds management and deal with portfolio managers and traders with widely varying levels of performance on a daily basis. this is completely irrelevent to this conversation though, as is your self-proclaimed skill at trading.
i'll say again, being a skilled short-term trader means nothing other than you are good at trading. it does not make you steve jobs or any other sort of business guru.
Yes, I admitt that I've exaggerated to emphasise my point across to readers.
i think you're confusing exaggeration with just plain old making shit up.
Plus you failed to consider the variables such as popularity of the game, location, other titles that were released on the same month, media coverage and much more. If you consider all these factors, my examples are not that farfetched.
these factors are captured when calculating a PED as any change in the factors you've listed would affect demand.
besides, even if those factors somehow weren't taken into account (of course i'm totally sure you accounted for those factors when you performed your sophisticated analysis /sarcasm) a PED of 30 is still wildly unrealistic.
you honestly think a 1% drop in price would correspond to a 30% increase in demand? a $70 game being reduced to $69.30 would cause a 30% increase in demand?
you're full of shit, sir.
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i'll say again, being a skilled short-term trader means nothing other than you are good at trading. it does not make you steve jobs or any other sort of business guru.
I've never said I was Steve Jobs or a business guru, I merely stated that to be a successful trader you have to be quiet knowldegable in all aspects of business. You seem to be quiet pessimistic and seem to believe your opinion as a gospel.
you honestly think a 1% drop in price would correspond to a 30% increase in demand? a $70 game being reduced to $69.30 would cause a 30% increase in demand? .
IT was an example, seriously get over it, like i've mentioned in my previous post, I've exaggerated to emphasise my points across to readers. It is an effective method to engage readers.
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so we agree you completely made shit up to make your argument seem more believable.
glad you could admit it.
now it's time for me to get the hell out of the office - see you chaps on monday.
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trog
AGN Admin
Brisbane, Queensland
34870 posts
I've never said I was Steve Jobs or a business guru, I merely stated that to be a successful trader you have to be quiet knowldegable in all aspects of business. You seem to be quiet pessimistic and seem to believe your opinion as a gospel. That is an intriguing comment and I would like to explore that further outside of the context of this thread!
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My main message was to explain that If Australian retailers provide competitive prices, increase in sales would compensate for the minor loss of profit per merchandise. Instead of trying to maximise profit by offering inflated priced merchandise to reluctant consumers, retailers would benefit greatly If they offered competitive prices.
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so we agree you completely made shit up to make your argument seem more believable. glad you could admit it. now it's time for me to get the hell out of the office - see you chaps on monday.
I said I've exaggerated, not completely lied about it, If you account all the variable I've posted in my previous post, the example is not that farfetched. I must say, it feels like I'm discussing with a kid rather than a mature person.
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mission
Brisbane, Queensland
7998 posts
Instead of trying to maximise profit by offering inflated priced merchandise to reluctant consumers, retailers would benefit greatly If they offered competitive prices.
Do you honestly think that they haven't thought of this? It's economics 101.
I tend to think that the executives and CEO's in charge of these companies have probably considered this, do you think?
You also state that they are too greedy to see the light by charging high margins, yet say that becoming more competitive that their profits will increase through increased sales, although margins may decrease - if it was simple I think they would have been doing this along time ago in the pursuit of greed.
The concept of elasticity, supply and demand is not new and I have every faith that the people running these corporations have more idea than you give them credit for and definitely more idea about running a profitable business than you or I.
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Timmeh
Brisbane, Queensland
1138 posts
Just picked up forza 4 for $79.00
cheap
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XaltD
Queensland
884 posts
Passing on the savings to the customer is a form of "buying business" where you make little profit to ensure long term customers. Pile on top of this supplier rebates and it's a winning formula, how ever simple it seems.
Dvd or Game today, TV or Computer in the future.
Repeat business is king.
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EniGma
Brisbane, Queensland
5515 posts
A major game retailer has already sourced other suppliers, has so for a while now.
Their stock comes from Europe....
I wonder what the deal is between them and local suppliers. If they source the same product else were, do they then lose the rights to distribute the product?
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Yeah JB don't know what they are doing or whats going on in the world...
....no wait...
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glynd
Melbourne, Victoria
427 posts
Looks like JB have pulled the trigger with cameras for now.
http://www.gizmodo.com.au/2011/11/jb-hifi-goes-grey-market/
JB HiFi’s best known for its bricks and mortar stores, has launched its own grey market import business, but you’ll have to shop online with the company to take advantage of it. Dubbed “direct import”, it’s currently only offering DSLR cameras, lenses, flashes and grips to consumers. It’s even undercutting its own stores in the process; a Nikon D3100 through JB HiFi’s online store with a single lens currently lists at $777. The same camera, through direct import on the same site? $596. |
Dexterra
Brisbane, Queensland
8 posts
Awesome!! Now lets see if the other stores will follow.
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orbitor
Brisbane, Queensland
8713 posts
Serious question:
One reason online shopping is so popular right now is the strength of the AUD compared with many other currencies. So at the moment we can get a great deal for our money. So if retailers should drop their prices in line with the growth of our currency, what should they do when the currency drops? Increase all their prices?
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RockitMan
Brisbane, Queensland
6287 posts
What's the legality for retailers doing grey imports? If a distributor has an exclusive agreement with the manufacturer is there ay issue in companies bypassing them?
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Nitro
Gold Coast, Queensland
2110 posts
I am a day-trader and manage a portfolio with an astronomical figures, do you know why online sales have increased by 37.9% last year while retail sales have decline by 1.4% last year?
Well I hope you never manage my portfolio.
You are getting your figures mixed up. 37.9% of Australians bought something online in '09-10. Annual growth has been around 9-13% the past few years not an astronomical 37.9%.
last edited by Nitro at 14:48:14 18/Nov/11
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FaceMan
Brisbane, Queensland
7601 posts
Retail sales very big pie
online sales very small pie
10% increase in online sales is prolly roughly = to 1.4% fall in retail (which prolly excludes the overall increase in yearly growth of retail, w/e that was.)
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jaydub
Gold Coast, Queensland
41 posts
ooks like JB have pulled the trigger with cameras for now.
http://www.gizmodo.com.au/2011/11/jb-hifi-goes-grey-market/
JB HiFi’s best known for its bricks and mortar stores, has launched its own grey market import business, but you’ll have to shop online with the company to take advantage of it. Dubbed “direct import”, it’s currently only offering DSLR cameras, lenses, flashes and grips to consumers. It’s even undercutting its own stores in the process; a Nikon D3100 through JB HiFi’s online store with a single lens currently lists at $777. The same camera, through direct import on the same site? $596.
All Jb Hi-Fi staff have been told to match our online prices and also beat it in some cases.
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E.T.
Queensland
4018 posts
Maybe bricks and mortar shops wouldnt need to run such high margins if cunts like Westfields didnt charge 10K PER WEEK ! for a smallish shop. You have to sell a huge amount of crap to pay that rent let alone pay wages, super, insurances and god forbid, make a profit.
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FaceMan
Brisbane, Queensland
7610 posts
They are going to start selling Music Gear too soon.
ching chong strats !
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DK
Brisbane, Queensland
502 posts
Tiny
Brisbane, Queensland
2990 posts
They charge crazy amounts for shops at westfield. When my dad ran his own business selling mobile phones he looked into getting a shop at chermside when it was being built back in 2000. They wanted 150 k PA in rent.
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Eorl
Brisbane, Queensland
4110 posts
Well, in saying that it is highly overpriced, you are paying to be in a Westfield branch. Everyone knows Westfield, and probably goes to shop there. I know on the Gold Coast, the one at Helensvale, was super easy to get to, only took me 10 mins max on the highway. Simplicity and had what I wanted.
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Tiny
Brisbane, Queensland
2991 posts
Correct Eorl. However.
They had completely unrealistic views of what different types of business can turnover. Whilst city beach clothing store might do well, in my fathers case there was absolutely no way you could drum up turnover to cover the costs they were asking. Especially in your first year of running that particular shop.
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Eorl
Brisbane, Queensland
4111 posts
Oh yes most definitely. They should maybe try a more flexible rent system, maybe calculate it on expected income or something.
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Tele
Gold Coast, Queensland
275 posts
Oh yes most definitely. They should maybe try a more flexible rent system, maybe calculate it on expected income or something.
And how often do u see an empty store in these places? pretty much never unless they are building a new store? so it couldn't be too bad if it works.
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E.T.
Queensland
4020 posts
And how often do u see an empty store in these places? pretty much never unless they are building a new store? so it couldn't be too bad if it works.
Ahhh, the bliss of ignorance and apathy. Must be a nice place to be.
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FaceMan
Brisbane, Queensland
7621 posts
Was in JBs at Chermside yesterday.
place was packed solid. had 4 chicks just doing cash reggies.
looks like the good times are over for parking at Chermside.
Was hardly any free parking bays undercover and there was a huge crowd there yesterday.
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