GST free threshold removal effect on shoppers and overseas bike shops

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bychosis
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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

10speedsemiracer wrote:
bychosis wrote:Seems it’s just going to reduce competition as OS suppliers drop off. That only means price rises.


Which in turn further augments the income stream...

until the consumer stops consuming.
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RonK
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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

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.

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.

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

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.

It comes from two angles too.
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

With the current economic climate and the increasingly noticeable impacts of consumerism on our environment, I'm definitely placing a higher priority on re-using, re-purposing, wearing out and not upgrading. As an example, my commuter light recently broke so instead of a like for like replacement which would be a big lump of plastic, metal and rare chemicals, I've gone dynamo. I had my heart set on a new commuter frame but I'm delaying for another year or 2 to properly use up the one I've got.

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

bychosis wrote:and How many of us have added extras to the cart to get free shipping?


Just about every single OS order I've ever made, unless getting wheels or similar.

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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

OnTrackZeD wrote:
bychosis wrote:and How many of us have added extras to the cart to get free shipping?


Just about every single OS order I've ever made, unless getting wheels or similar.


If I'm honest I could probably never buy any bike bits ever again.

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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

One thing that shouldn't be overlooked - in the earlier days of online retail, Australia was far behind and when consumers moved from mail order to the internet - overseas retailers were far better both from a pricing perspective and because they understood sales and online customer service much earlier.

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

Well, I snuck in a Bike24 order yesterday to get the last parts to finish off my Mason Adventure Bike Build (Dyno Lights, SKS Guards).
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

bychosis wrote:
and How many of us have added extras to the cart to get free shipping?


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.

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

I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs. :wink: 8)

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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

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.

Yes, there are a couple of local online retailers occasionally offering pricing keen enough to tempt me into buying from them.

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

foo on patrol wrote:I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs. :wink: 8)

Foo


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?
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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

bychosis wrote:
foo on patrol wrote:I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs. :wink: 8)

Foo


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?

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. :wink:

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. :wink:

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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

I went to the post office the other day, absolutely packed with people picking up packages. If the local distributors think that this change will help them survive, they're dreamin'.

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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

foo on patrol wrote:I've stocked up on rubber for my track wheels and roadies, so now have stock for at least 2yrs. :wink: 8)


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.

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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

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 queequeg » Mon Jun 18, 2018 1:20 pm

I run Schwalbe Marathon Plus tyres on my commuter bike, 700x28mm. Every time I have seen them here in Aus, they are about $80+ each.

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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