Tuesday, January 4, 2011

Australia facing internet purchase revolt by retailers.

With profits down this Christmas, retailers in Australia are crying poor. Purchases made via the internet are being blamed, despite their accounting for less than 3% of sales.
The big retailers have banded together to try and have GST added to overseas online purchases. The Australian has an article showing price differences between online and retail, but is this the whole story?
Here is an example I found in less than 2 minutes....
Corel, makers of well know software have an online store where you are directed to satellite pages for your country automatically. See the Australian page for Videostudio X3 below.

Now, if you click on the country link and select U.S. you get this....
This compares with Harvey Normans price here...

So as you can see from these screen-shots, Corel make sure their online price is inflated to match retail on-selling pricing. You can't buy the boxed version from America, but you CAN buy the download version. Here's the price for that...
Yup, still around half the price.

Let's face it, since most software is updated online anyway it's no big deal to download the whole program and burn it to a disc.

This one example shows that pricing is often set by a perceived ability to pay, NOT what is reasonable.
If the same website has multiple pricing for the same product then clearly all is fair when you decide how to part with your money.

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