The ugly side of online shopping (Part 2 of 2 Parts)

Posted to The Age (11/4/2012) on 11/4/2012 at 9:06 PM
Commenting on "The ugly side of online shopping"
http://www.canberratimes.com.au/act-news/the-ugly-side-of-online-shopping-20120411-1wq5q.html

The new Australian Consumer Laws are not helping the small business operators, especially on refund and return of items. Many unscrupulous "purchasers" have been misusing such loophole which is a better option than hiring the item. Items are “purchased” but returned to the retailers after the intended uses are satisfied, e.g. a HD TV for football final, expensive gown or hat for a special occasion, an expensive camera to take the wedding photos, etc.

The Federal Labor Government is stupid to the highest degree by not taxing many overseas online purchases. These should incur not only the GST, but also an additional tax called the loss revenue tax. When a retail shop closes its door, not only there is directly loss of employment for the staff, but also loss of rental for the premises owner, utility usage, vibrancy of the surrounding business precinct, unemployed staff’s ability to spend which sets another chain reaction, etc.

End of Part 2 of 2

Big retailers hammered

Posted to The Age (22/3/2012) on 22/3/2012 at 4:20 PM
Commenting on "Big retailers hammered"
http://www.theage.com.au/business/big-retailers-hammered-20120321-1vkdi.html

Besides online shopping, there are other factors at play. China’s design is no longer dreary and dull. Many designs are comparable to European designs, and accepted by many consumers.

In fact, some big boys are importing directly from China, and by cutting off the many middlemen in between, the retail prices are much cheaper. I can get my jeans from Kmart as a price I used to pay in Hong Kong, minus the heckling.

The consumers’ mentality tends more towards disposable. Long product life cycle seems to be things of the past, whether it is fashion or electronics. It does not seem wise to pay for something overpriced, or costs too much, because soon the product will be out-dated and a new one need to be purchased.

Many take on the will-do attitude these days. Furthermore, there are outlets which sell recycle high-end market fashion at bargain basement price.

The generation that grows up Myers and DJ are now beyond the “used by date”. These yesterday consumers, in fact, can most afford but they do not require as much cosmetics, handbags, hats, fashion, etc.

For consumers who are prepared to pay more to go to these well known establishments, they do expect certain level of services. However, this has been downgraded to what had happened in Hong Kong before SARS struck the island – customers received no service, and the staff were kings / queens.

'New' goods scandal: more stores accused (Part 3 of 3)

Posted to The Age (23/12/2011) on 25/12/2011 at 1:01 AM (Not yet published by newspaper)
Commenting on "'New' goods scandal: more stores accused"
http://www.theage.com.au/digital-life/computers/new-goods-scandal--more-stores-accused-20111223-1p80h.html

Some of the defects of returned goods can be detected visually, but it is almost impossible for a salesperson to be a hi-tech, electronic or software expert; and even so, no experts know everything in every field. Processing returned goods is more than a pain, and handling an irate and unreasonable customer returning goods requires the skill of a communication expert or psychologist.

Reselling returned goods as new under the Consumer Laws is definitely deceptive and misleading depending on the circumstance. With high cost of labour, many stores do engage casual workers or minimum staff. It is unfair to expect them to know every single piece of company’s policies.

While many big companies, not necessary the retailers but more so the wholesales or manufacturers can write off the returned goods, many small operators who have no purchasing power may go belly up. If the suppliers are local, all the losses will be passed on to the consumers, and the honest ones will pay for the black sheep.

It is quite selfish to keep pointing our fingers at “greedy” Australian retailers, and increase buying online from overseas. The Government is an accessory to kill off employment opportunity by not imposing taxes on direct purchase from overseas. There is a very simple solution, and not requiring any hi-tech or sophisticated system to collect the millions of dollars

I am only a fair-minded Australian consumer, despite my Chinese name, voicing out on behalf of business operator, large or small, who provide employment to millions.

End of Part 3 of 3

'New' goods scandal: more stores accused (Part 1 of 3)

Posted to The Age (23/12/2011) on 25/12/2011 at 1:00 AM (Not yet published by newspaper)
Commenting on "'New' goods scandal: more stores accused"
http://www.theage.com.au/digital-life/computers/new-goods-scandal--more-stores-accused-20111223-1p80h.html

This has been a common practice since the dawn of return with no question asked policy.

It is ridiculous that some stores do not allow garments to try on due to health and hygiene reason, and yet they are allowed to be returned with no questions asked. Whoever tried on the garments, whether the initial purchaser or people they know, may have skin diseases or some form of dangerous transmittable diseases, not detectable by naked eyes.

I do know some very unethical people who only "buy" clothing for a function and return it a few days later, sometimes with bonus stained marks on the return item.

From time to time we hear those horror stories about "unhappy" restaurant customer complaining about their meal and the waiter gracefully returning dish to the kitchen. The unscrupulous chef / cook may just rejig the dish and return as a one!

End Part 1 of 3

'New' goods scandal: more stores accused (Part 2 of 3)

Posted to The Age (23/12/2011) on 25/12/2011 at 1:00 AM (Not yet published by newspaper)
Commenting on "'New' goods scandal: more stores accused"
http://www.theage.com.au/digital-life/computers/new-goods-scandal--more-stores-accused-20111223-1p80h.html

The generous return policy is a joke, but then who is laughing? Competitions created such monster, hoping that this will compensate the lack of customer service. Refunding with no questions asked is one way to stop a loud customer creating a commotion in the shop!

I have been on both sides of the fence, as a consumer and supplier. Once I was a supplier of made-to-order birthday cakes to a big supermarket chain. A customer returned just a small piece and some crumbs to the supermarket and demanded a refund.The customer did not like the cake but required no further explanation. The supermarket refunded the customer in full, but I, the supplier, had to refund the supermarket.

Unfortunately, the new Australian Consumer Laws just being introduced replacing many other state laws are no improvement to safeguard the interests of the suppliers.

Customers should give clear reasons for the return and information be documented. If there is enough evidence to prove that the returned item is damaged by the customer and not defective when new, the customer has committed a fraudulent act.

The refund policy should be replaced by replacement so that purchasers should take responsibility of the purchase decision. An item after being exchanged should not be allowed the second time. In cases where replacement is not possible, then all refunds need to be withheld for a period pending examination so that the fund is not available for seasoned culprits to go to stores to purchase more goods, or make refund a cumbersome chore for some people to take advantage of.

Part 2 of 3

Julia Gillard: not becalmed, just calm (Post 1 of 3, Part 2 of 3)

Posted to The Age (18/12/2011) on 18/12/2011 at 12:34 PM (Not published by newspaper)
Commenting on "Julia Gillard: not becalmed, just calm"
http://www.theage.com.au/national/julia-gillard-not-becalmed-just-calm-20111217-1p04p.html

It is a noble idea to prepare students for careers, but where are the employment opportunities for those equipped with diplomas and degrees? Many reform policies are short-term policies and do not create jobs, let alone giving false hope to establish careers.

More and more factories have been closed, and jobs outsourced overseas. Online purchases from overseas could have been taxed and yet not done so. Collecting GST from these purchases can bring in hundreds of millions of dollars; good enough to fund some small infrastructure projects and create jobs. In the meantime, retailers will be able to survive the tough times and retain workers. While she is going to collect a big pay packet, she ignores the plight of the small business people. Is she going to wait until retailers collapse one after another before she realises we have a serious problem on hand? Unfortunately, many Labor members always treat business people as big bad wolves. This is probably ingrained in Julia Gillard’s mind, and as a result, she lacks the ability to understand the relationship between jobs and employers.

As some futurists may say, "The future is here". Offices and schools have no walls or boundaries anymore. Not only the office workers will soon be a thing of the past, but also the professionals; many will be joining the dole queue. This is a reality check; if workers or staff can work remotely from home, why can't work be done by much cheaper labour force overseas?

Part 2 of 3

Retailers told the enemy is within

Posted to The Age (5/8/2011) on 5/8/2011 at 11:48 PM (Not published yet)
Commenting on "Retailers told the enemy is within"
http://www.theage.com.au/national/retailers-told-the-enemy-is-within-20110804-1idm5.html

If everyone boycotts Harvey Norman, Myers, David Jones, JB Hi-Fi, just to name a few large retail outlets, because they charge more to cover costs in employing people, leasing buildings, using utilities, advertising, etc., this will lead to unemployment for many sales staff, tradespeople, property management, service providers, accountants doing tax returns, chefs, waiters, etc. Those who have made savings buying online, if they are still in employment, will eventually pay more taxes to cover the increasing number of welfare recipients.

This stupid and stubborn government fails to take note of the long term repercussion of great exodus of in-shop purchases, and refuses to tax all items purchased from overseas under $1000. At present, the cost of collection of these taxes may be more than the taxes receivable, but the scenario will change very soon as on-line transactions continue to grow. Who will be paying for the shortfall of tax revenue?

This is a double whammy. Just be careful, it could be the online shoppers’ job on the chopping board if this unfair practice is allowed to go on unchecked.

Productivity Commission calls for a shake-up in laws governing retailers

Posted to The Australian (4/8/2011) on 4/8/2011 at 10:06 PM (Not published by Newspaper)
Commenting on "Productivity Commission calls for a shake-up in laws governing retailers"
http://www.theaustralian.com.au/national-affairs/productivity-commission-calls-for-a-shake-up-in-laws-governing-retailers/story-fn59niix-1226108247819

If everyone boycotts Harvey Norman, Myers, David Jones, JB Hi-Fi, just to name a few large retail outlets, because they charge more to cover costs in employing people, leasing buildings, using utilities, advertising, etc., this will lead to unemployment for many sales staff, tradespeople, property management, service providers, accountants doing tax returns, chefs, waiters, etc. Those who have made savings buying online, if they are still in employment, will eventually pay more taxes to cover the increasing number of welfare recipients.

This stubborn government fails to take note of the long term repercussion of great exodus of in-shop purchases, and refuses to tax all items purchased from overseas under $1000. At present, the cost of collection of these taxes may be more than the taxes receivable, but the scenario will change very soon as on-line transactions continue to grow. Who will be paying for the shortfall of tax revenue?

This is a double whammy. Just be careful, it could be the online shoppers’ job on the chopping board if this unfair practice is allowed to go on unchecked.

Online retailers' tax advantages, regulated shopping hours must go

Posted to Adelaide Now (4/8/2011) on 4/8/2011 at 9:44 PM
Commenting on "Online retailers' tax advantages, regulated shopping hours must go - Productivity Commission"
http://www.adelaidenow.com.au/online-retailers-tax-advantages-regulated-shopping-hours-must-go-productivity-commission/story-e6frea6u-1226108284276

If everyone boycotts Harvey Norman, Myers, David Jones, JB Hi-Fi, just to name a few large retail outlets, because they charge more to cover costs in employing people, leasing buildings, using utilities, advertising, etc., this will lead to unemployment for many sales staff, tradespeople, property management, service providers, accountants doing tax returns, chefs, waiters, etc. Those who have made savings buying online, if they are still in employment, will eventually pay more taxes to cover the increasing number of welfare recipients.

This stubborn government fails to take note of the long term repercussion of great exodus of in-shop purchases, and refuses to tax all items purchased from overseas under $1000. At present, the cost of collection of these taxes may be more than the taxes receivable, but the scenario will change very soon as on-line transactions continue to grow. Who will be paying for the shortfall of tax revenue?

This is a double whammy. Just be careful, it could be the online shoppers’ job on the chopping board if this unfair practice is allowed to go on unchecked.

Online shopping tax grab delayed by Productivity Commissioner report into retailing

Posted to Herald Sun (4/8/2011) on 4/8/2011 at 6:39 PM
Commenting on "Online shopping tax grab delayed by Productivity Commissioner report into retailing"
http://www.heraldsun.com.au/news/online-shopping-tax-grab-delayed-by-productivity-commissioner-report-into-retailing/story-e6frf7jo-1226108306696

If everyone boycotts Harvey Norman, Myers, David Jones or JB Hi-Fi just because these outlets charge more for employing people and leasing buildings, there will be unemployment for many sales staff, tradespeople, property management, service providers, etc. Those who have made savings on buying online will eventually pay more on taxes to foot the welfare system.

The stupid and stubborn government refuses to tax all items including those under $1000 purchased from overseas, there will be a reduction of tax revenue. So who will be paying for the shortfall?

This is a double whammy. Just be careful, it could be job on the chopping board if we allow this unfair practice to go on unchecked.

Miranda Kerr set to return to Australia for David Jones in retail war

Posted to Herald Sun (15/5/2011) on 15/5/2011 at 2:08 PM (Not published)
Commenting on “Miranda Kerr set to return to Australia for David Jones in retail war”
http://www.heraldsun.com.au/entertainment/confidential/miranda-back-to-fight-for-djs/story-e6frf96o-1226056171317

David Jones has recalled its biggest asset Miranda Kerr. If the consumers are not careful with their spending, the banks will be recalling the loan by auctioning the mortgagors’ biggest assets - their houses!

Pushing bricks and mortar

Posted to The Age (13/12/2010) on 14/12/2010 at 3:36 PM

Commenting on “Pushing bricks and mortar”

http://theage.domain.com.au/home-investor-centre/pushing-bricks-and-mortar-20101213-18ull.html

1. Economy is not as robust as what ABS reckoned, and the real unemployment rate is much higher than reported. Many people face financial trouble in meeting mortgage payment, and more mortgagee auctions will take place;
2. Closing the loophole of allowing the foreign investors to invest in secondhand properties without FIRB approval results in the collapse in sale price in many suburbs due to lack of competition;
3. Change of government policies in international education results in drastic drop in international students coming to Australia, thus kills off student accommodation rental demand. Many properties used for such purpose will be forced to sell;
4. Change of policies also results in closure of international colleges, which normally lease commercial buildings used as classrooms. Many of such buildings will be vacant;
5. 2010 Christmas retail sales will be below previous years', threatening the survival of some small businesses. Unemployment will shoot up beyond many economists' forecast in Jan and Feb 2011. Businesses for sale will be increased;
6. The median price across the board in Melbourne will decline to around $550,000 by June 2011;
7. In general, there will more listings than sales from December onwards;
8. 2011 is not a year for the rookies - only the experienced survive

ASX index will be below 5000 points for another few more months, likely up till March

Pushing bricks and mortar

Posted to The Age (13/12/2010) on 14/12/2010 at 3:36 PM

Commenting on “Pushing bricks and mortar”

http://theage.domain.com.au/home-investor-centre/pushing-bricks-and-mortar-20101213-18ull.html

1. Economy is not as robust as what ABS reckoned, and the real unemployment rate is much higher than reported. Many people face financial trouble in meeting mortgage payment, and more mortgagee auctions will take place;
2. Closing the loophole of allowing the foreign investors to invest in secondhand properties without FIRB approval results in the collapse in sale price in many suburbs due to lack of competition;
3. Change of government policies in international education results in drastic drop in international students coming to Australia, thus kills off student accommodation rental demand. Many properties used for such purpose will be forced to sell;
4. Change of policies also results in closure of international colleges, which normally lease commercial buildings used as classrooms. Many of such buildings will be vacant;
5. 2010 Christmas retail sales will be below previous years', threatening the survival of some small businesses. Unemployment will shoot up beyond many economists' forecast in Jan and Feb 2011. Businesses for sale will be increased;
6. The median price across the board in Melbourne will decline to around $550,000 by June 2011;
7. In general, there will more listings than sales from December onwards;
8. 2011 is not a year for the rookies - only the experienced survive

ASX index will be below 5000 points for another few more months, likely up till March

Retail sales in surprise fall

Posted to The Age on 4/2/2010 (not published)

Commenting on “Retail sales in surprise fall”

http://www.theage.com.au/business/retail-sales-in-surprise-fall-20100204-nepc.html

The RBA Governor, statisticians, economies and bankers alike should go back to school to learn critical thinking and mathematical analysis. The December 09 retail sales are indeed better than forecast, and NOT as bad as these ignorant people try to make us believe.

Many departmental stores and non-food outlets were concerned about the economic downturn, and attempted to have Sales before Christmas. As a result, the item unit prices were lowered, and therefore more sales volumes must be generated to compensate the eventual sales value.

For example, if a $100-item is sold at 20% discount, it is required to sell 1.25 (i.e. $100/$80) items to achieve $100, or an increase of 25% sales volume. With only 0.7% drop in sales value, or $99.93, the number of units sold is 1.2496 (i.e. $99.93/$80), or close to 25% increase in volume.

In general, cafes, and food outlets don’t drop prices, and that explains the increase in sales revenue. If the retailers in question were game enough not to drop their pries during the peak season, they would have made hefty profits.

In short, these gurus’ interpretations are just nonsensical!