Cycling in Sydney Australia
You are so right. Nothing to do with GST. Any fool can see it's all down to the carbon tax.
Thanks for pointing that Richard. I think consumers in Australia have no idea about the high costs to small commercial enterprises in Australia. You missed the true cost of labour hire though - for every dollar you pay staff, you can end up paying double that when you factor in holiday pay, penalty rates, leave loading, compulsory superannuation, sick pay, maternity leave (where applicable) and workers compensation insurance, etc.
I feel badly for all retailers in Australia at the moment and I try, wherever possible to buy locally. I used to buy from Wiggle but for the past year, I have sourced all my bike products from LBS's in Sydney (and clothing from Sydney retail outlets too for that matter).
I learnt a hard lesson a few years ago when I bought a Canon camera for my daughter for Christmas - it was waterproof and cost about $600 even from the online seller. When it leaked water on our holiday in the January, I took it back to Canon Australia who would not honour the warranty as it had been purchased from an overseas supplier. When I returned it to the seller (following all their explicit return policy directions), I didn't ever see the camera or hear from them again. Their site disappeared (probably reappeared under a different name) and when I google-mapped the address to which I had returned the camera, it appeared to be a fishing gear warehouse!?!. $600 down the drain.
@MB ; for your o/s Canon hard lesson story, here's a few of my LBS encounters :
: the one time I agreed for the shop to provide bartape on top of a $ service and was slapped 4x the cost I could get for it delivered from, say, Wiggle? And paying to get it installed.
: being asked to shell out 6x more (compared to what they cost online) for new cables + AND additional $ for installation on a 2nd hand beater MTB (on top of a $$$ service)
: having to take back my bike to get rework done, eg: A shifter not properly tightened that slipped and started to pull my new bar tape in an unsightly manner.
: having to deal with a mech with an attitude despite the fact I spend more on a per bike service than a (capped) car service or even a Midas servicing
For components and stuff, will I buy (virtually) all my bike stuff in the comfort of my home, without being under duress, at the hours and price that suits me ? You bet - Although I'm a slow learner, LBS have taught me this, So what if I get 3 bartapes and only ever use one? What if I get the wrong item and need to get a replacement ? I'm still 'ahead'. I've had refunds processed from o/s online stores in less time then it takes Telstra to sort out my billing (although admittedly that's a very low benchmark)
But in reality what actually happens is that I've found excuses to send bike to LBS for a service and put on the many bits of elective purchases (did I mention bartape?) - so the LBS do benefit. (the ones that do actual value added services that is, not just being farmers pulling teats for milk)
- because I want work done by a 'pro' a qualified mech. and where I don't feel ripped off. If LBS can do that, I'm happy to support them.
You only need to lose someone's trust once.
local bike shop told me to go online to get some Shimano parts rather than through them.
And an LBS has never shut down owing people money ever, never ever, evah.
reminds me of a certain Surly Big Dummy I ordered, put down a substantial sum since they (Avanti castle Hill) said they wanted to make sure I would not back out of the order. When I rang them a month later to find out how it was going the shop no longer existed.
Good example of that was BSC. $2.7 million owing to a whole bunch of people.
just interested, how do they recover the money? Are directors chased for money?
When I had a look at that one I remember Cannondale (I think - yep, just checked) being a creditor for something like almost $700k. That is a shirtload of bikes they've delivered without having been paid for any of them. I don't know, but erring on the side of being generous let's assume they had an average wholesale value of something like $3k each, call it 200+ bikes.
That is a lot more than any bike shop would sell in a month of just the one brand (8 per working day, assuming you're open 6 days).
Seller beware - the cheque is never in the mail.
I, and many others, have been globalised too. It is how the world works.
I don't know the conditions of Cranks closure, but the bottom-line is there is a growing market and hence opportunities. It's there for someone (else) to seize.
So long as it doesn't involve additional protectionist measures , hopefully cycling can continue to grow and people who choose to cycle can benefit.