Gerry Harvey: Retailers will perish unless online sales are equally taxed

What utter balderdash!
The old dinosaur was good in his day, but has clearly lost the plot on retail developments.
The GST is irrelevant when service and price are so much better with overseas on-line retailers - despite the much greater cost of posting to Australia and having items delivered individually right to our doorsteps.
Most Australian retailers are either so inefficient that they should not be in business, or they're making a really exorbitant profit from Aussie battlers.

Isn,t nearly all Harvey Norman and other retailers products aquired from overseas.Don,t see Gerry Harvey buying to much australian produce do we.A dollar saved by them not buying local is a heap more dollars in their pockets.Gerry said charity should never be given to anybody so why did he hold his hand out wanting it from the government when the global crisis hit.
Rich retailers getting richer through the poor asian workers well its time the playing fields were even. Bring on online trading so the field becomes even more competitive.
Now go and get in your hole again Gerry.

Now that the old cheat can't get the millions he's so used to by sucking the Aussie consumer blood, he calls in more idiots to get involved and complicate things. We the consumers have been robbed by this sleazy fossil long enough. It's time he jumps into a hole and stays there for eternity.

WHAT A CROCK OF S$%T, THIS BOZO GERRY HARVEY AND HIS CRONIES WHING AND WHINE ABOUT GST IS APPARENTLY KILLING THERE BUSINESSES , MORE LIKE THEY ARENT GETTING THE PROFITS THEY ARE USED TO AND NOW NEED TO TRY AND INFLUENCE GOVERNMENTS TO HELP THEM AGAIN ( OF COURSE THE TYPICAL LABOUR IDIOTS IN POWER WILL AGAIN GET BEHIND BUSINESS INSTEAD OF THE "LITTLE PLL LIKE US" ) , I WILL NEVER EVER BUY ANYTHING FROM HARVEY NORMAN AGAIN OR ANY OF THE CRONIE OTHER BUSINESSES BEHIND THIS , I SUGGEST WE ALL REFUSE TO SHOP AT THESE CORPORATE HUNGRY MONGRELS SHOPS AND SHOW THEM WHAT PPL POWER CAN DO!!!!

Congratulations Gerry, you just made a fool out of yourself.

Gerry just dug a hole for himself...

So, Gerry Harvey and all other throat cut merchants crying poor, they want a FAIR GO and they want internet shoppers to pay GST. This shows what a misleading bunch of idiots they are. Here are some facts and receipt available if anyone wish to verify what I am writing.
After days of checking Australian shop and internet price on a particular gold detector I found it to be between $2700 and $3000. I went on American website and purchased the same machine for US$800 plus $100 postage. At that time US dollar was 0.80 AU $.
A saving of approximately AU$1500.

2 days ago purchased a Downrigger from USA, $200 plus $162 postage. Same model in Australia best price is $720 plus $60 postage and it goes up to $1600. plus postage.

Gerry Harvey & Co. this is my money and I refuse to give it to you, keep on lying and crying.

If Gerry and co. want a piece of the action, they need to get their online stores up to scratch and offer some incentives like free shipping and loyalty discounts. Remember when David Jones discontinued online sales a few years back due to "low volume of sales", did it occur to them that it may have been something to do with the prices?

There are several Aussie online retailers that I've bought computer and small electrical items from. I pay the GST and don't mind because I like to think I've helped an Aussie warehouse person stay in a job, and I've still saved 30%-40% of the Harvey price.

So why hasn't anyone grumbled about Bunnings yet? Dremel drill bits cost $10-$15 each at Bunnings, but I can buy a pack of 4 for $12 (including postage) from UK online retailers. The same drill bits from the same factory in Germany... go figure...

P.S. My favourite ads during the pre-Christmas period were the bus shelter posters with the line "Check it out at Westfield, buy it on eBay". So true!

Its the Australian retailers which need to take a long hard look at themselves... their mark ups on everything is ridiculous and thats what it domes down to. I pay $25.00 for a battery from overseas (including postage) which local retailers want to charge me $100.00 for here. Yeah right Gerry, a 10% GST on that purchase is really going to make me think about buying local...NOT. My advice to retailers is to stop being such greedy bastards, stop your whining and move with the times or move aside.

Gerry Harvey wake up to yourself, have you actually been in one of your stores lately? the customer service is rubbish, you have young wally's walking the floor pretending to be experienced sales people, Suggest you get your stores in order first and accept the changing world of on-line shopping. Your pricing is a joke, I REFUSE to purchase anything further from Harvey Norman and will continue to shop on-line even if it saves me a few dollars on your prices, which I know it will. You made a Wally of yourself on TV last night, you therefore now in the same category of your sales staff..

Ahh, poor old Gerry, can't go as often to casinos etc. and splurge a million dollar bet, lose and then say, oh what the heck, better luck on my next bet......no point crying poverty or hard done bye aye Gerry, no one has any sympathy for you. In my shop if things go down, I do something about it, I get off my ass and market, not moan and groan.........you reap what you sew!!!

I'm amused that suddenly Gerry is concerned about some retailers going out of business when he has personally put many competitors out of business by undercutting them. What goes around comes around.

The fact that retailers believe this is about the GST just shows how out of touch they are. As many other commentors have noted, the GST is just a small part of the savings to be made online. Even when I purchased a washing machine from an Australian online business (and therefore paid the GST), it was still significantly cheaper than anything Gerry's store could offer - and I didn't have to put up with his annoying sales staff.

Retailers like Gerry should have seen this coming many years ago, and set up online businesses of their own. The Australian Government should wait for the Productivity Commission Report and not respond to the hysterical bleating of the retail dinosaurs.

Is funny the biggest margin giant retailer is now crying for more margin.

I worked with some of the vendors who provided both services and merchandise to Harvey Norman, the minimum margin with front and back end incentive required just for them to consider any product to be on their shelf is anywhere between 35% to 50%.

So tell me Gerry, with that kind of margin and mostly go to the Head Office of Harvey Norman instead of the franchised stores, how can it be a equal playing field for the stores to compete when most of the margins goes to the Head Office?

Yes I know someone of from your PR going to say "we need the margin in the head office for promotion & advertising". But at the same token, I know HN HQ also required some of the vendors to provide a separated "marketing funds" on top of the front and back end incentive.

I know some of the vendors and whole-sellers are struggle to provide all those high percent incentive and have no choice but to provide an inferior features and quality in some of the models in order to stay in business in Australia.

So how can you blame the consumer to go online shopping when they can find a better feature items that cost less?

Shame Shame Shame

Bye bye retailers - You have been milking the golden consumer goose for too long - Welcome to the Brave New Online World. The consumer is now dictating not the greedy high street retailer. Change or be buried.

Gerry was one that thought the internet was a fad and you needed no "online" store. Now that he's been left behind he wants the Government to help him. What a joke!

You people are deluding your selves, the bottom line is that Gerry is right. There is a huge scam going on in this country , do you think every shop owner is making millions ? Do you have any idea how much it costs to employ people in Australia ? Everyone wants to get paid 50K for doing close to nothing, where is that money coming from ? Do you have any idea of what rents are like in major shopping areas or shopping centres ? Then Utilities, shop fitout., insurance and taxes (local and federal)

You have to mark up 200% just to break even. So sure go buy your goods overseas, let the local shops die. Then when they are all out of business and bring down a large number of other supporting businesses who will complain then ? Your kids will all be out of a job. The Pyramid will crumble

If you want to complain, go to the government and ask why taxes (local, and federal) are so high ? Ask the shopping center owners (banks, super funds) Why are rents so expensive ...
If you want a better deal for you goods locally, don;t blame the middle man, open your eyes and look at the big picture here. We are just passing on costs that are put on us by the big end of town.

How many little OZ retail companies have these national retailers have killed the last 3-5 years?...

Where are the little hardware companies gone?...where have all the little hi-fi shops gone?...etc?

Gerry is feeling the pitch coz just about everyone is sick and tired from lining his pockets...

Gerry sometimes it''s better to keep your mouth shut and look stupid rather than opening it thus removing all doubt...

I'm suspicious. I don't think this has anything to do with making people pay more for goods they buy from overseas.

Like most commenters have said already, making us pay 10% more won't be much of a disincentive and I'm sure Gerry Harvey knows this.

But forcing every package brought into the country to be processed for tax has the possibility of making overseas delivery very painful.

It might mean our packages are stuck in customs an extra week or two while they process it, and force us to visit the post office to pay the tax instead of having it delivered to our doors.

Posting again after reading 17 replies, 1 for GH, 16 against, what a pity the general public does not ever get to see what we see as retailers and wholesalers, hint hint.........

Maybe it's time GH got a real taste of his own medicine and see how he likes it........I wonder which knee he sits on God's lap?

The amazing thing is that Greens support this move.. what have they been drinking??? there goes my Green vote...

Mr Harvey might like to explain what is happening with cash we handed over for a product that would be ready for pick up within a week but has now blown out to maybe the end of the month? By their own admission there are 29 other customers waiting for the same product ahead of us. Surely not holding the funds in trust or perhaps donating the interest generated to charity?
Checked online same product with a delivery within 10 days. Not sure why their own distribution centre couldn't have given more realistic stock levels/delivery dates at the time of purchase or are they just trying to close a sale. Think I'll take advantage of the new age and buy online next time regardless of price

Judging by the comments posted most cannot see past their noses or at least Gerry Harvey's nose. Wakeup all of you, it's not just Gerry Harvey and retailers that are effected but a lot of small business across the board. For us as a small company we found this morning direct online sellers from the UK , US and Hong Kong have directly targeted our market through eBay and their own websites with competing products. The Hong Kong company is offering free delivery to Australia and does not normally sell our product category. They are actually a Chinese building materials company who have setup up a cheap shot online direct sell side business targeting our market because they know they have the advantage. To the Chinese a dollar profit is a day's pay. The only solution for us now is to put some staff off and cut out our resellers so we can drop our GST INCLUDED price and sell direct as well.

Don't worry Llama, I'm covered I saw this coming and I think I have a good idea of what's to come. I am whinging at the big corporates. What irrtates me is that most people can't see the big picture. Whether you like Gerry or not, have anecdotal evidence about bad customer service is really irrelevant here. The issue is that when I import items as a business to resell I get hammered , when I open a shop I get hammered. John Smiith can buy 1 widget online from china and it flows through customs with no questions asked.

As I've told a few customers, If I were to run my business as the most chinese online stores:
-little regards for product quality or safety,
-don't care about Australian standards compliance
-don't care about warranty since I could just ignore you
-don;t worry about paying duty, import taxes and fees

I would work on much lower margins, only problem I can't because the ACCC and other bodies will shut you down as a shonky operator.

The playing field is not level

Nick

Nick

Retailers should tell Harvey to pull his head in - he's doing you no favours. Particularly in this arena of PC resellers - most will have a bit of a problem and very little simpatico with our friend Gerry.

I think the e-buyer knows the risks and regardless of whether they do or don't, they will learn from their experiences. I don't even bother responding to the "I can get it online ..." chant - this is our offer, it works.

Sounds more like you should be discussing a reduction in customs duties, not penalising those you depend on.

Anyway - good luck

Llama

When we look at the issue, in my humble opinion, the problem lies with imported goods and the $AUD. Having shopped online and overseas for a while now, the difference in RRP between the US and here since the AUD strengthened, is astounding for identical products. What all retailers and I mean all retailers and some IT manufacturers have done, is not pass on the benefits of the increase in the $AUD to the buyer/consumer.

The Aussie dollar has increased 30% in value and I ask you, have we seen a 30% decline in prices......I think not. With the exception of Cisco and APC from an IT perspective, I don't recall seeing or hearing of many price decreases, there certainly havent been price decreases on RRP's at DJ's, Myers and Harveys.
It will be fascinating to see their profit margins for their financial year 2010/11 when they close their books. My tip is flat - ish revenue, massive increases in margins!
They are ripping us off on imported goods, it is plain for all to see, just do a price comparison yourself.
Brooks runners - here at Rebel $210 in the UK on line $114 delivered to my door, thats not 10% that is almost double!

And I agree smaller retailers do it a lot tougher and have a hard job to compete against the big retailers, my hope is that they differentiate themselves through great service and great products, the customers will come.

The problem for some industries is GREY imports as well.

I think all GREY imports should be banned to make it fairer.

also i want a investigation done as to why there is such a difference in price.

A profit is a profit you need to make a ethical profit not a extremly large one all the time.

Gerry i ask you this:
How can you continue to alter your prices so much?
1 week a tv might be 2000 the next 1000. obviously you are buying thing quite cheaply and putting a huge amount on the price.

You also need to improve on customer service more instead of sell, sell, sell if you want your job.

this is why people are shopping online.

Alot of people i know now go to a retail shop, pick the item they like, leave the store find the same model online for a fraction of the price and buy it.

Change your business model or perish. Hardley Norml looking more jaded all the time. What GH is really telling us is he has not been able to invent a way to compete! Looks like the old dog has run out of tricks. Think outside the square Gerry and Lew or maybe its time to retire. Big infrastructure retail is not necessary to get the job done, do you get it? We know GH's business model is about real estate anyway not retailing so of course he is packing bricks because he is concerned his share price will plummet and the value of his real estate holdings will go south as well!!! And why not save all those carbon emissions and waste generators. Go green buy online, save the planet and save yourself the grief of dealing with a behemoth like HN. GH does not believe in the internet business model or understand it because it flies in the face of everything he has invested in, get it Gerry?

Nick, you are right on and it amazes me how so many comment writers can only see as far as their hip pocket. Yeah let's all not pay any tax, that's a better way to go, just let this Govt borrow more they sure are good at it, or maybe they can print more money like in the US, just so it costs you all less. Wow, sadly from all the negative comments the tall poppy syndrome is a live and well here. Yes of course it's all Gerry's fault for making a successful business, taking the risk and working hard for all those years. Sure he's hard, you have to be to survive, so why such demeaning attacks on man who has built one of the country's most successful retails chains. His aggressive marketing and discounting has given you all low prices since before the internet existed. So let's forget about the personal attacks and address the issue, then we might start seeing some sensible comments.

My issue is choice. I buy CD's and books from Amazon. Clothing from Lands End. The prices are great but the additional choices are astounding. Check out the shirts at David Jones for $100 then look at what you can get at Lands End. No contest. Where do I go when I need PC stuff?
Local retailers. Choose your product set - not all online deals are equal or worth the effort.

The most simple question to ask here is - not if - but when the dollar sways - what will you do then? We are all related to a business in some sense and the money has to come from somewhere. Lets keep the Jobs and money here in the country - we all have to live. You all ask who's pockets are being lined. Definately not an Aussies. I would rather give my money to someone who earned it. Satisfaction of my purchase is higher on my list than the price I paid.

Jerry is right, we should be taxed if we buy offshore, if we dont buy from our own country the money doesn't stay here, people lose jobs, business close, people starve, I buy from overseas retailers because i can save money but id rather spend the money here in my own country so my fellow country man can have a job and feed his family.

The law needs to be changed.

Poor Gerry has been ripping off the IT Vendors for 20 years by demanding 4-6% in rebates and than hurting the distributors with massive returns and expecting the poor vendor to hire merchandisers to suck up to his staff in order to get business, to me this has always unethical and something you would expect in the Godfather Parts 1,2 and 3. Now he claims he is losing out on sales because he chose not to enter the internet race in 1999-2000. What a clown.

@Brad@andrew@russell - Your argument doesn't fly. If i buy an item from overseas and there's an identical item in a large local retailer's for 2 or 3 times the price, where do you think the retailer purchased that item to on-sell to me? Same place - overseas. Whether i spend my money overseas directly or the retail chain spends it importing the goods to sell in their store, the money's going to the same place.

And it probably more or less evens out. The savings i make on items purchased overseas mean I have more in my pocket to spend on other goods and services i need around home. These large, local retailers are just getting persnickety because not as much of our disposable income is locked into their retail space anymore - ie, they don't get to pool as much of it in their hot little hands.

I nearly choked when i read Russell's comment on Harvey Norman having kept prices low for all these years. No, he didn't. It's just that we didn't know we were being taken for a ride on price until we were empowered by the internet and got to see the size of the gouge these guys were putting in our living expenses.

These changes will flow onto rental leases, etc also. When the retail stores can't make their lease payments or find a better margin in operating a mail-order service from a warehouse, it'll force Westfield and other such places to fall into line on rental price.

This is just a redistribution of wealth and power. It hurts in the short-term. And the only reason there's such a fuss about it this time is because it's hurting people who've got the money and influence to make a big hoo-ha about it. I'd imagine it's scary confronting the possibility of giving up a lifestyle of extravagance.

I think the vitriol in the reactions is because it seems like such a small victory to the consumer - overseas purchases less than $1000 - and they can't even allow us that.

Just wondering if the retailers are financing the political campaigns of the labour Government.

We will see if the labour Government support the labourers or the Big Greedy retailers.

We will see whom win this battle, and the next election.

People are still going to the normal shops. If you need a product urgently, you get it at a normal retail store. You need to be patient if you order it from Hong Kong.

Therefore, there is a place for both, but this was a very bad PR campaign of the retailers.

Plain and Simple: I can import stuff for more than 10% cheaper (more around 30-50% cheaper!) than in Australia.
Company's in Australia still by from the same manufactures ie. Sony Japan as those in USA and Europe!

Sorry but this BS of "ow I am making no money" is a load of crap simply to keep the coffers of shareholders happy!

To keep if fair and simple, if everyone in Australia buy everything online, wont we all be out of job? also our future children??? and australian economic will be trashed.
all overseas suppliers will be laughing and we might not see australia products anymore in the market.
seriously, we need to be fair, and there are things that we can shop online, and things require service and warranty we should purchase from australian retailer to keep the $$ in our country. after all, we all are human and need to make our living somehow in australia. as australian small retailer, i often feel tempted to use overseas supplier coz they're so cheap but when it comes to looking after my suppliers and clients altogether, i need to be sensible and support australian products. we are a nation of service and quality, not just whats good for our bottom line. i cant agree 100% with gerry's comment but i cant say i disagree in some of his points.

What gGery Harvey prefers to keep secret , is that his stores stock about 90% imported goods , mostly from China. It seems he likes to buy cheap , but when it comes to us consumers , he's got his hands in everyones pocket.

Dear Gerry, I have just ordered an LPG injection kit for my Nissan Patrol Diesel at a landed cost of $909.35. from USA. I was quoted $1925 from a local distributor, for the same kit. By all means add 10% GST and I still wouldn't buy locally from rip-off merchants who are profiteering from Govt. Rebate Scheme for LPG conversions.

I am enjoying my dinner with a little wine, watching SBS news, suddenly from my TV..... F......G HARVEY NORMAN starts SHOUTING at me.......I will never
purchase anything from this neanderthal retailer.

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