This was a great interview last night, it was at times funny, serious, educational, Emma Alberici asked some tough questions and gerry didnt dodge. Just a good interview.

Gerry discusses his attack on GST free online sales, what he thinks of Politicians, where Retail is heading.

check it out, you might learn something.

http://www.abc.net.au/lateline/content/2012/s3458857.htm

I changed my mind about Gerry after watching this.
Perhaps he should get into Politics.

What an old bag

...where Retail is heading.

Yeah, the guy who was a decade behind with an on-line store has his finger on the pulse.

Yeah, the guy who was a decade behind with an on-line store has his finger on the pulse.

He addresses this by claiming Harvey Norman had an online store in 2000 and they had tens of thousands of hits but virtually zero sales.
He doesnt see it as a big enough threat.

The pie is big enough for online sales to compete but he says the problem is all the red tape bullshit with running a bricks and mortar store.
Why go through that when you can sit on your ass at computer and sell online ?
and then the government lets them avoid GST.

Maybe some Retail purchases should be GST free ?

Plus Mission they looked at his prices, laughed and went somewhere else.

Why go through that when you can sit on your ass at computer and sell online ?

The market is connecting consumers with utility as efficiently as possible.

Go smash a loom somewhere, Gerry.

He addresses this by claiming Harvey Norman had an online store in 2000 and they had tens of thousands of hits but virtually zero sales.

That's because the people who visit the site use it as an informative guide to compare with other stores and then go and check out the furniture in person. Everyone knows you can't tell furniture quality from a picture, no one is going to spend a couple of grand blind.

That doesn't mean however that the site didn't produce a far greater value than that of what he is claiming. Sure they may have only made $25K a month in online sales but I bet having a web portal led to a lot of in store sales as well. I also bet that Gerry Harvey isn't so bad at business to not realise this and that he was deliberately being disingenuous in that interview to give his argument of online retail not being of importance to his business greater weight.

he is right about how useless the politicians are when trying to cut red tape.

Lets have a look at this shall we

GERRY HARVEY: Well, the problem is that you've got so many costs. Any small businessman listening to me now, I'd say nine, 99 per cent will agree with me. They work long hours. I know people working 80 and 100 hours a week. They've got all the forms to fill in, they've got all the government regulations. It's never-ending. You just work, work, work. And you think to yourself, "Am I ever going to get out of this?"

Since when is HN a small business? Someone can check but somehow you don't qualify
Since when do you work Gerry, last time I saw you (in person) you gloated that you had been spending a week or 6 as you put it on 'the boat' doing nothing but fishing... but please continue

And then your business drops 10 per cent. "What the hell am I going to do now?" And the Government comes up and says, "I'm going to cut your tax 1 per cent." "Hell, I've bigger problems than that! I'll pay 35 per cent tax. Let me make a profit."

And then your profit margins drop and wages costs and increase. I will totally ignore market competition but I will pretend I am still the little Aussie battler... tell me more

It's more important to make a profit. And to make a profit you need next to - very little government intervention if possible. The more of that you get - and every year you get more and more.

Oh you mean like the ACCC and your fingers and toes in finance and rental companies pies and greasing your wallet... like the government isn't going to want a slice out of that. But hang on I thought you where a small business

You hear about the politicians, "Oh, we're going to cut the red tape to business." They never cut it! Go back five years: there was a lot less. Five years before that, it was a lot less. Guess what? Another five years, there'll be a lot more than there is now!

Quick switch and bait, and divert everyone's attention while I pretend to give a fuck about small business.... because I am really on a the side of the small business corner computer store, and old mate that hand makes his furniture down the road. Oh whats that jb just opened another store next to one of mine the cunts, and I was going to buy another horse this year to race at the cup

You sir would make a fine polly, in fact you could even do well to stab gilltard in the back and become the ALP Prime minister yourself. No I hear about a hard done by businessman from the goldern 70's retail era that alienates his customers while trying to fuck the Australian public up the arse on the subject of GST, in the face of nose diving profit margin's

Well shit cunt got news for you how well is your stores doing in NZ where GST is on EVERYTHING and it's 15% nothing to say about that one. I am yet to hear any fucking mention of that

And considering parallel imports and grey market goods are not banned there either.. oh fuck sorry forgot about global markets and shit....cause the interwebz is steallllling ourrrr jawbbbbbssss and hundred banga's. And its all the government fault.

it all comes out in the wash.

Gerry hired some very expensive staff - who didn't do him much good.

Here at work we pretty much sack Liberals on site.. times are tough, and we've no room for oldskool royals and that level of thinking.

We've a share price to uphold eh.

nah matey...

I just work for dividend.

enjoy your holiday Jimbo

share the knowledge... if you have it...

last edited by koopz at 00:15:16 21/Mar/12

yeh thanks for the knowledge: 'it all comes out in the wash'
hopefully harvey is reading this too, that's some serious food for thought for him

When was the last time anyone went to a music store to buy a CD?

people need to accept and adapt to change

i was on the sunny coast and saw a blockbuster up for sale.. i mean really..

Since when is HN a small business? Someone can check but somehow you don't qualify

I assume he's talking about the franchisees - they are small business owners and Gerry works with them. He didn't say HN was a small business he says he talks to small business owners every day.

If I can buy a camera from the US, at around full US price and get it sent here and still save 20-40%. Something is wrong.

I just bought a 5D from overseas but only because the importer carried the risk of being taxed at customs. If you do get hit with GST then the price isn't cheaper than local online or retail stores. Lenses are a lot cheaper due to them falling under the $1000 mark.

Online pricing for local stock isn't always a better deal than what you find in the shops, it's just a hell of a lot easier to find what you want.

Many of the larger stores have dropped carrying a lot of the range/variety that they used to and the staff can't help you with specialist questions. Amart All Sports is one example - they used to be a sports store and carry a huge range of sporting goods. Now they are just a clothes store with a few bits an pieces in more major sports. I wanted to buy some darts the other week and couldn't find them anywhere. The Amarts had 1 type of dart and nothing else. Useless. Big W/Kmart used to carry a decent range and now nothing.

I ended up jumping online and found a specialist and had them in 2 days.

It's a trend I've noticed in a lot of the large format stores and I think it will come a full 360 and the specialist small businesses will benefit. The small business are the ones making the most of online retailing. Even if they have a storefront the combo of niche products, expert advice, and nationwide exposure with a website they can take a lot of business back from the Harvey Norman's and department stores that pushed them out years ago. Not being able to afford Westfield rent will not mean less people seeing their offers.

Online doesn't mean international and it doesn't mean small business will suffer. It should help them grow.

I'd buy from retail if it were actually close to being competitive. Say < 25% of what I can get from an overseas shop.

I'd rather go into a store after work and pick it up so I can have it right now without stuffing around and going to a post office on my saturday.

The reality is retail in australia isn't even close to overseas pricing for the same brands especially in clothing, you're looking at often 100% markup.

My mobile was about 40% diff from the cheapest I could get in an australian store.

Gerry Harvey is complaining about GST but its a lot more than a 10% disparity in most cases.

Brisbane retail is really bad in general compared to other capital cities and countries. It feels like the CBD has zero specialty stores. There used to be a calculator store in Elisabeth Arcade. Now where will I buy my calculators from?