Friday, January 07, 2011

Gerry Harvey Gets It Wrong!!

With the debate about the GST threshhhold for imported goods set at $1,000 the major retailers are going to war with full page ads saying how unfair it is. But I think they have missed the point.

By using Gerry Harvey as a spokesperson they have allowed a "non net retailer" to front the cause and the social networks have turned on him. I read in today's West Australian how Gerry thinks it is unfair that the social media networks are attacking him... in fact vilified him... calling him "a greedy horse owning billionaire". People tend to call you greedy when your "Interest Free Terms" are actually 29%!! That's another story for another day. Anyway, he is so taken aback, he is withdrawing from the public battle.

My take on the debate: The reason people are buying online from overseas "and in Australia" is that the traditional retailers are not offering the prices or convenience of what online shops do.

Example: I wanted a extra power pack for the computer I am using now... Harvey Norman and Dick Smith wanted between $150 and $199 for it. Adelaide net shop LaptopPlus wanted just $35 plus $14.95 to ship. Wow - so I purchased 2 and ordered on a Sunday evening and they were delivered to my Perth PO Box on Tuesday.

What made me make the decision??

PRICE: $35 against $150 and SERVICE: Delivered to my door QUICKLY.

GST?? on $35?? well it wasn't a consideration. Anyway I paid it - Aussie store ONLINE!!

Compare that with shopping Harvey Norman style - Malaga store north of Perth??

ME: Can I have an extra handset to the cordless/wireless phone system I purchased here last week?? Harvey Norman Smart Alec:NO!! If we stocked those we mightn't sell them and we would lose money! ME: Oh then can I order one?? Harvey Norman Smart Alec: How about you ring back Monday and I will check.. ME: You are telling me to piss off!

Outcome: ME: went home, ordered online - paid $15 extra for shipping and but had it Tuesday. GST influence decision... BULLSHIT!

See full story on my video report here:

I say to the Gerry Harvey lead major retailers - welcome to the 21st Century - you are 10 years late but welcome anyway.

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