Thread: WHEN WILL PARTS SUPPLIERS LEARN

Inc, I'm sure for every genuine customer who is trying to give you first refusal on their business, there's going to be 10 that are taking the ****. That wouldn't surprise me either.

When I purchased my 40 litre Engle, about 7 years ago I went looking for a good deal. Back then the ARB fridge was a rebadged Engle. Now I don't know what their margin is but I would have a guess at around 25%.

I went to my local ARB store, flashed the cash in front of them and said, give me 10% off and you have a sale. They refused so I then went to Aussie Disposals who gladly gave me 10% off.

As I said, I don't know the margin but I reckon they probably made between $120 to $150. Surely this is better than what ARB got. Because of their attitude at the time, when I want ARB stuff I now go to a different store.

So they could have made a smaller margin on the fridge and had a repeat customer. I am soon to start spending a heap of $'s on my recently acquired bog standard D2. You can guess who won't be getting my business.

Originally Posted by newhue

It is going to be a growing issues I think for Australians, in regard to what we will all do for a job.

As the Americans have discovered they cant all sit around selling each other real estate and living high off the hog. US has 315 million people roughly in 3 times of Aus land mass, UK had 56 million in not much more than Victoria. Australia has 22 million, and all of us have very little industry.
Even leaving China out of it the scales of economy, easily explains why things are dearer in Australia. Less sales = higher prices.
If you run a business you have to try and cover money sitting on the shelf, Government obligations to accounting, WH&S, insurances, etc and then try an be competitive. Let alone the social worker side of things for staff. If we could all have the cash flow of Jerry Harvey we most likely would, but would we cut profits by half to be a nicer bloke for a strangers benefit?
I do find Coles and Woolworths not my friends and driving prices higher screwing Australians from the farm to the dinner table generally. Profits, profits, profits, business has no soul or ethics really.

I'd imagine there a lot of internet business that are doing very little. You cant see there stock, there ****ty little office with paper everywhere, or the possibility ol mate has another job. But little corner mower store shows it's poor stocks, rundown building, and has a desperate grab at making some profit when someone comes through the door. He has no choice, give it away or have a go.

I am guilty of buying overseas, and for me it basically greed and a first world thing. I WANT all this stuff for my car and don't have the finances to buy it all locally. So I convince myself i'm SMARTER and MAKES SENSE to buy overseas or online.
Maybe I'm dumb, got it all wrong, and have spent my money; but in deeper reflection of what will I do next because the car is done. I am not sure what my children will be doing when China and India get going. Maybe packing boxes for internet orders?

same reason why people don't want to double some retailers (strangers) profit.

It cuts both ways.

Unfortunately we can all see it coming but are limited in what we can do to stop it.

Originally Posted by newhue

It's starting in the building industry, Asian labour. Teams of plastered, tilers, and painters. They arrive here, form companies and under cut labour by significant amounts. They often have to rectify their work several times but doesn't seem to bother them. I assume many live in the one house, not like the typical white nuclear family we all are.
The builder I work for has built up his business over a couple decades doing high quality, high service work and charges for it. But it's getting harder because even the wealthy want more and more and struggle to pay for it all, so Asian labour is the answer.

It will be real fun when it hits the mines.

I'm a plasterer and yes you're right the Asian crews are undercutting a lot of contractors but the quality of the work is awful, they cut a lot of corners and do a sub-par job IMO (I've seen plenty of **** plastering jobs in my time). Plastering along with painting is one of the mosty complained about trades in the building industry and if you're not doing a good job you won't last long plain and simple, especially with the climate as it is with the builders checking every bit of plasterwork with large spotlights and carrying on the most minor issue. As I said, if you're work isn't good you won't last.

It's tough out there just have to keep at it I guess not much else to do

Trav

Originally Posted by Loubrey

As mentioned before, it all boils down to customer service...

I willingly pay the inflated Australian prices if you at the very least have a smiling friendly person to deal with. My local franchised 4x4 supplier is one of those people. The guy runs his business and treats his customer like you would friends.

He introduces himself by first name, enquirers about yours and if you mind if he calls you by your first name. That to me is the first $300 sold!

He always rounds prices down (not talking massive discounts) and always calls back with updates on back orders. These are the small things that makes customer return...

I have spent quite a bit of money with him as he will install internet purchased items without blinking or moaning that you should have bought it from him. I know what labour cost and I don't begrudge him his rate for doing the work.

His approach to business has created a massive customer base and his business is flourishing as a result. I'll keep supporting him and even pay the prices he's forced to charge because of rent, deliveries, salaries and all the other issues quoted as reasons for poor service by others.

Cheers,

Lou

Reminds me of my first dealings with Peter Haylock (All 4x4, Kotara), rang him near on close (11, I thought they closed at 12) on a saturday morning and in his cheerful accent he explained where he'd leave the part and I could slip the money under the door. I still get similar service from my local fishing tackle store for last minute stuff (oversights ). It's tempting to go online but good service simply can't be replaced especially "when you need it now".

I feel for retailers with shops. Most people come into a shop to touch and feel the item to see what it's like then go and buy it online because the now know it's what they want and it's cheeper as they dont have the overheads.

Being in a remote mining town, customer service in the shops we have is non existant as either they dont care about joe blow of the street coming in to purchace small amounts, or the staff are kids or hopeless as retailers cant afford to pay the high wages that mining do for unskilled people.

I would love to walk into a shop and have someone ask me if you need some help. And also to have some sort of knowledge of the product they are selling. and not have to pay the Pilbara tax (think 200% mark up on already marked up prices)

Originally Posted by Sparksdisco

and not have to pay the Pilbara tax (think 200% mark up on already marked up prices)

I know what you mean. I was involved in a transport business in Western Qld. We charged a similar tonnage rate for just about everything from fuel to socks and were kept honest by three other locally based carriers plus a couple of the capital city based big companies. Retailers would bung on the prices and blame "freight". I remember being in a Blackall pub one night when a local was getting up the proprietor of the bigger local carrying company about the high price of fuel because of "exorbitant freight". He was firmly told that the fuel came up a $x per ton same as the beer and biscuits and to take his concerns up with the shopkeepers and publicans who determined the freight add-on.

In the case of the "Pilbara Tax", if I was running a small business there, harsh conditions, small population, restricted sales volume and little chance of increasing it, with a customer base of people on mostly six figure incomes, I would expect to be making at least as much as my customers. The only way to do this is to bump up your prices. You may perceive the service from many remote area shopkeepers as poor but it is what you have got and perhaps be appreciative of what you have. It could be worse. There could be no local businesses at all if they can't make a decent wage. I have been on both sides of the counter figuratively.