Thread: Safari Snokel

Yaaaaa, snorkel has arrived

'Australian retailers need to get their act together as online buying is so easy and inexpensive!"

Don't be too hasty to judge.

The retailer has inventory to touch and compare, for this he has to have high profile premises, insure the premises and the inventory and the risk ( public liability ) , pay for signage, probably a website, computers, phones faxes, delivery vehicle's, and then there is the staff. Workers comp, payroll tax, super ( going up shortly ) OH & S training, wages and holiday pay..............I,m sure I've missed a few dozen others.

Without the retail face there would be no online market. The product has to get a name and establish itself. Safari snorkels did not get established as the international leader for snorkels from online sales.

Originally Posted by ADMIRAL

Without the retail face there would be no online market. The product has to get a name and establish itself. Safari snorkels did not get established as the international leader for snorkels from online sales.

out of the last 10 things ive ordered online, i dont think any of them i saw in stores.

the only things i get in retail stores are bulky/heavy items
food
and some clothes

Originally Posted by ADMIRAL

'Australian retailers need to get their act together as online buying is so easy and inexpensive!"

Don't be too hasty to judge.

The retailer has inventory to touch and compare, for this he has to have high profile premises, insure the premises and the inventory and the risk ( public liability ) , pay for signage, probably a website, computers, phones faxes, delivery vehicle's, and then there is the staff. Workers comp, payroll tax, super ( going up shortly ) OH & S training, wages and holiday pay..............I,m sure I've missed a few dozen others.

Without the retail face there would be no online market. The product has to get a name and establish itself. Safari snorkels did not get established as the international leader for snorkels from online sales.

Appreciate your comment, but retailers in the UK, the US ... you name it has similar cost. I'm still struggling to see the difference, particularly since I know some of these are actual shops selling their stuffs on the internet, too, not pure online players.

I still strongly believe we are being ripped off here, and I will continue to vote with my money.

Originally Posted by ADMIRAL

'Australian retailers need to get their act together as online buying is so easy and inexpensive!"

Don't be too hasty to judge.

The retailer has inventory to touch and compare, for this he has to have high profile premises, insure the premises and the inventory and the risk ( public liability ) , pay for signage, probably a website, computers, phones faxes, delivery vehicle's, and then there is the staff. Workers comp, payroll tax, super ( going up shortly ) OH & S training, wages and holiday pay..............I,m sure I've missed a few dozen others.

Without the retail face there would be no online market. The product has to get a name and establish itself. Safari snorkels did not get established as the international leader for snorkels from online sales.

I agree with your statement as well. The store I purchased from in the UK is a legit store that would have all those costs asscioated with running a day to day business. I am all in favor of supporting local businesses as well , but I'm also a smart consumer. Safari has established them selves in the 4x4 market for some time so the need to have a touchy feely product is overplayed. If I went into a retailer to look or touch a product I would happily pay maybe 10% more to buy there and then to what I could buy online, if the retailer does not want to match or come close on price and I'm not in a hurry to get the product ill wait. Mind you ordering from the UK the said snorkel only took 5 days.

The same goes for tyres in this country as well! Overpriced, this is why online retailers like Tirerack are so successful!

M2cents

Don't get me wrong, I am the first to admit to buying the odd product online. The point I was making, is that these household brands are only that by establishing a strong retail presence in the first place. That costs money, advertising and the original R & D. We cannot expect a brand to be available under a full retail structure as described, to match an online order setup for price. The difference is the retailer is still there for backup when required.

Tyres are another example. The tyres are purchased on line, and fitted by local tyre retailers, using their expertise, equipment etc. Ultimately we can expect they will start to charge outrageous amounts for this, as they are losing their market, but are still expected to service the online customer.

Ever been an exporter? Tax breaks, Export concessions... And volume orders... All help keep prices lower to export countries...

Then you buy it -VAT from the UK... So you essentially purchased a "Duty Free" snorkel...

If the global status quo moves back to pre-GFC type levels... That Snorkel will end up the same price or more from the UK...

Originally Posted by ADMIRAL

Tyres are another example. The tyres are purchased on line, and fitted by local tyre retailers, using their expertise, equipment etc. Ultimately we can expect they will start to charge outrageous amounts for this, as they are losing their market, but are still expected to service the online customer.

Exactly...

Tyre profit margin ~ $15.00
Fitting margin (hourly rate + cost of building + cost of machines + Supply charges eg Power) / Time taken to fit... ??

Local tyre shop charges $15.00each for strip, swap and refit for local lads (new rims).. Not fitted on vehicle.

Charges $25.00 for above with balancing.


So suggesting customer comes in for 4 tyres..
$15.00 x 4 = $60.00 profit on tyres
$25.00 x 4 = $100.00 for fitting (excludes costs)
$5.00 x 4 = $20.00 (extra for time to R&R on vehicle)

Total (excluding tyre cost) incoming $180.00
less Plant, Equip, Power and Wages for 1 hour $40.00 all up.
less GST
less Company Tax
less Payroll Tax
less cost of holding common stock size
less freight to get tyres to shop for fitting

And suddenly he's lucky to make $50-70 on a set of 4 tyres Fitted and Balanced.

So now, he has customers coming in off the street with their own tyres...

He still has most costs - equipment, wages, shop etc... except freight and stock holding and hasn't made a cent on the tyres...

Now he gets...
$100.00 (strip, fit new tyres, balance and refit) for 4 tyres
minus his running costs (which didnt get cheaper, and in fact, because he's selling less domestic tyres his volume pricing discount structure gets worse) and the guys screwed!

Now this bloke like every Aussie family man wants a nice income and a new LR for his family to go away in...

And you lot are depriving him of that