Yep, massive cultural change. This is really simple economics.
Retailers, tradies, manufacturers, etc are not making 1000% profit anywhere in Australia, gauranteed. (and if you can prove me wrong, I WANT THEIR NUMBER!) Their costs are high, their prices are high, and hopefully they make 15%.
Lower costs, and you get lower prices, in a competitive market. Key costs are rent, and wages. Cant lower wages, 'cause the cost of living for the wage earner is so high. Cant lower rents because the property owner has a loan to repay....etc, etc.....to fix it, requires massive change, and that change is not going to happen
voluntarily. The only way it happens, is like how the GFC has effected the UK. They now have much lower costs....and all of the pain that goes with it....high unemployment, low demand for product, stagnant economy etc.
In a truly open market, the world would equalise. Wages, and product costs, in different companies, would even out. Because the workforce will go where the money is (CHECK OUT ALL THE BOATS COMING TO AUSTRALIA as an indicator of mobile populations chasing a better standard of living.) If you cant compete with that COuntry, then you dont make/provide that product anymore. On a coarse scale, this is what is happening with manufqacturing internationally. We dont manufacture anymore, becuase China, and India do it cheaper. Instead, we aim to provide something they need, but cant do. The obvious one is minerals. But we have also tried to provide higher level services, like education, technical expertise etc. These industries too are on the decline as places like China and India inprove their ability on these areas. Whilst we have resources, and they need them, it doesnt matter. We are in part shielded from the global economy. Thats why we have money to spend on cheap imports. It will keep working whilst we can share that wealth throughtout the Australian economy. It will stop working if we end up with a two speed economy.....or run out of minerals. (Although I have a solution for that
) And when that happens, it should level out globally.... But it wont level out, because the people at the better end, dont want to give up what they have, and the Government feels obligated to support that desire.
This is the Capitalist Model....everything is linked to "growth", and everything will therefore keep going up. If it doesnt, it breaks.
So, next time we whinge about having to pay 30-50% more for parts in Australia, just thank yourself that you have the option of supporting the local guy, or whilst sitting in your house, with a cold beer, kids in decent schools, you can access the inta-ma-net with your right hand, find something on the other side of the world, and justify to yourself that you can spend some of your disposable income on some "Ineeditrightnow ori'mgoingtodie!" parts.
You can bet your bottom dollar that most australian companies out there do not sit on a 50% profit margin! If they could compete with you bringing stuff in from overseas, they would.
Choice is yours....and I dont judge you
For the record, I own an australian engineering design and manufacture workshop, that struggles to compete everyday, and often unsuccessfully....and I still order some parts from overseas.
Reply With QuoteOriginally Posted by CraigE
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