until the consumer stops consuming.10speedsemiracer wrote:Which in turn further augments the income stream...bychosis wrote:Seems it’s just going to reduce competition as OS suppliers drop off. That only means price rises.
GST free threshold removal effect on shoppers and overseas bike shops
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby bychosis » Thu Jun 14, 2018 9:21 am
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby RonK » Thu Jun 14, 2018 9:26 am
Local retailers (and their supporters) need to take a reality check. It may be a mistake to assume that buyers will turn to local suppliers and simply suck up the local pricing.10speedsemiracer wrote: Also don't think any of this will help local bricks/mortar sellers but will most definitely see places like BikeBug, Pushys etc enjoy increased sales.
Many overseas purchases amount discretionary spending, often done on impulse because prices are relatively cheap. I suspect if buyers are inhibited from making overseas of purchases they simply won't spend.
Consumer confidence is low, wages have stagnated, more than 50% of the workforce are now employed as casuals and have no job security, household debt is at record highs, household costs are soaring. Discretionary spending purchases will only happen at the lowest possible price.
On the other hand, apparently Australian business confidence is high. Perhaps they are living in a fools paradise.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby bychosis » Thu Jun 14, 2018 9:41 am
It comes from two angles too.RonK wrote:Many overseas purchases amount discretionary spending, often done on impulse because prices are relatively cheap. I suspect if buyers are inhibited from making overseas of purchases they simply won't spend.
Cheaper prices encourage more spending, higher prices and we'll start repairing or just wearing it out more before replacing
and How many of us have added extras to the cart to get free shipping?
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby march83 » Thu Jun 14, 2018 9:54 am
Changes to GST will only reinforce this behaviour I suspect.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby OnTrackZeD » Thu Jun 14, 2018 11:22 am
Just about every single OS order I've ever made, unless getting wheels or similar.bychosis wrote: and How many of us have added extras to the cart to get free shipping?
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby piledhigher » Thu Jun 14, 2018 11:54 am
If I'm honest I could probably never buy any bike bits ever again.OnTrackZeD wrote:Just about every single OS order I've ever made, unless getting wheels or similar.bychosis wrote: and How many of us have added extras to the cart to get free shipping?
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby AUbicycles » Thu Jun 14, 2018 4:57 pm
With time and a number of failures on the way - Australian online retail is massively competitive both in bikes and virtually all segment. Sales and acceptance have constantly grown so overseas vendors are not losing business, but local vendors are gaining a growing market share.
In context, the law is also a bit old and addresses problems and concerns that are over a decade old - in the meantime the market has shifted so not only can the approach be criticised (overseas vendors collecting GST) but also the suitability on todays market.
The potential advantage / benefit of the law for todays market is far lower than it would have been 10- - 15 years ago when Australian online retail was still playing catch-up.
Not to mention, a lot of the competition that traditional bricks and mortar retailers face is from other local business who sell online...
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby queequeg » Sat Jun 16, 2018 12:20 pm
No signs (yet) on the Bike24 site that shipping to Australia will be affected in the near future. In fact, they picked and shipped my order within a couple of hours, and it should arrive here before July 1st
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby BJL » Sat Jun 16, 2018 12:51 pm
For me, rarely as I tend to only buy expensive bits and pieces online which would cost me an arm and a leg if I purchased locally. I usually buy smaller cheaper, consumable items such as spare tubes, water bottles, cheaper tools locally as I usually want them quicker. I'll be planning my online purchases more carefully now and stocking up on parts that I may not need immediately.bychosis wrote:
and How many of us have added extras to the cart to get free shipping?
And the stupid thing about it all is that the way Australia is run, the dumbass retail sector is more than likely to go 'Oh look, imports have just gone up 10% due to GST, we'll increase our prices by 10% too, YAY', and then 6 months down the track whinge about low sales and consumer confidence and how online stores are killing them, and how nothing's fair, wah, wah, wah.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby foo on patrol » Sun Jun 17, 2018 11:21 am
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby RonK » Sun Jun 17, 2018 5:33 pm
Yes, there are a couple of local online retailers occasionally offering pricing keen enough to tempt me into buying from them.AUbicycles wrote:With time and a number of failures on the way - Australian online retail is massively competitive both in bikes and virtually all segment. Sales and acceptance have constantly grown so overseas vendors are not losing business, but local vendors are gaining a growing market share.
Now they will have an opportunity to become 10% more competitive, or to add 10% to their margin.
I'm not a betting man, but I reckon it's more like to be the latter.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby bychosis » Sun Jun 17, 2018 6:05 pm
Good idea, but what is the cost of not having those funds in you mortgage offset or investments? Is it more than the 10% saving?foo on patrol wrote:I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby foo on patrol » Sun Jun 17, 2018 6:32 pm
Well 10% of $300 is only $30, so that will make stuff all difference now but the future cost of tyres will be more than that.bychosis wrote:Good idea, but what is the cost of not having those funds in you mortgage offset or investments? Is it more than the 10% saving?foo on patrol wrote:I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs.
Foo
I can't get the rubber that I use from local LBS stores for a sensible price, because they don't cater to Track riders or even have stock of the tubulars that I use for the road. I won't and never have used anything else but tubulars for racing Road or Track since, racing open and not about to start now.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby DavidS » Sun Jun 17, 2018 8:18 pm
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby AUbicycles » Mon Jun 18, 2018 6:57 am
What's the lifetime on rubber? I have some older, but good road GP4000's and a bunch of tubes which are probably sufficiently ripe... at some stage they will be overripe.foo on patrol wrote:I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby march83 » Mon Jun 18, 2018 8:03 am
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby queequeg » Mon Jun 18, 2018 1:20 pm
Online, the most I have paid for them is $34
Exhibit A - https://www.pushys.com.au/schwalbe-mara ... -tyre.html
Same Item on Bike 24: https://www.bike24.de/1.php?content=8;p ... ,2,103,105
Price different of Aus vs Europe: $50. Potential GST Payable on import of Cheaper Type: $3, so still saving $47 per tyre.
Since Bike24 charges $30 shipping, I usually buy 4 tyres at a time (1 year worth when I was riding full time), so straight out that is a massive saving even with the shipping, and still copping GST on them. Even if I got slugged $100 in Customs Processing as well, it would still be cheaper.
However, pricing is not always this disparate. For example, GP4000s II, the price difference is only a few dollars compared to Bike Bug, so I just buy those locally when I need them.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby foo on patrol » Fri Jun 22, 2018 6:52 pm
Depends on the quality. Store them in a dark place and without creases.AUbicycles wrote:What's the lifetime on rubber? I have some older, but good road GP4000's and a bunch of tubes which are probably sufficiently ripe... at some stage they will be overripe.foo on patrol wrote:I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs.
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby foo on patrol » Fri Jun 22, 2018 6:54 pm
I don't like these, as they feel dead.march83 wrote:Depends on the tyre. I've had Veloflex turn bad in 1 year, but I've had the same set of vittoria tubulars on my track wheels for 6 years now (just occasional checks of the glue) and they've only just reached the point of requiring replacement (pretty sure the latex tube just perished).
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby Baalzamon » Sun Jul 01, 2018 3:56 pm
$150.43
Now $159.43
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby LateStarter » Mon Jul 02, 2018 9:28 am
2008 Cannondale Touring 2, 2013 Vivente World Randonneur, 2015 Lynskey Sportive Disc
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby Jmuzz » Mon Jul 02, 2018 11:25 am
Always wait for 20% to 60% discount to come around, that's the whole point of the wishlist to watch and wait.
Will be near impossible to judge if pricing has really changed or not because it's all mixed into the constant discount cycle.
These stores do well because they are a lot smarter than just adding 30% to wholesale. They swing their prices around a lot and even go into loss making sales to stay on top.
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Re: GST free threshold rfemoval effect on shoppers and overseas bike shops
Postby LateStarter » Mon Jul 02, 2018 12:22 pm
2008 Cannondale Touring 2, 2013 Vivente World Randonneur, 2015 Lynskey Sportive Disc
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby Crawf » Mon Jul 02, 2018 3:36 pm
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Re: GST free threshold removal effect on shoppers and overseas bike shops
Postby nickobec » Mon Jul 02, 2018 5:27 pm
Of course not, that is too hard and expensive for the ATO to implement.Crawf wrote:Is there going to be a customs processing fee? Flat fee, percentage based on value?
Go read https://www.ato.gov.au/business/interna ... consumers/ and related pages at the ATO website till you get bored.
ATO is putting all the onus on overseas retailers, electronic distribution platforms (read ebay, aliexpress) and re-deliverers.
There is nothing about consumers buying from an overseas retailer who is not registered for GST, (ie don't sell $75,000 AUD annually in Australia).
So if you do from a non registered retailer, nothing will change, except custom might record the transaction and delay delivery by a day or so. It is all to hard and expensive to implement, so ATO went for the low hanging fruit, mainly aimed at electronic products, think netflix, software subscriptions etc and got a few big retailers in the process.
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