Dutch Government Moves to Ban Sales to Protect Small Business

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  AngusD on 15/04/2020 - 08:22

  +5

  I don't see the point - if those small retailers are closed anyway then they're already missing out on those sales. Plus, discounts are probably a good idea at the moment with a hell of a lot of people out of work. I'm more concerned about that kind of predatory behaviour when the shops are actually open.

  • 

    Lord Fart Bucket on 15/04/2020 - 08:29

    Fair point. But those small retailers employ people. In shops, indirectly in a supply chain. Those retailers pay tax, the employees pay tax… where if i look at a company like Amazon or Kogan… not so much.

    If these smaller retailers go under, it's more people on the jobseeker payment, which hurts the economy.

    And as an example for the kind of shop i'm considering for this: clothes shops, small appliances, etc. You don't need to buy those everyday. Once the sale is done, the next one won't be for a while.

    • 

      wallet72 on 15/04/2020 - 08:38

      +3

      When you mention Amazon, remember that about 70% of Amazon sales are done by small businesses using the Amazon platform. You lump them together as 'Amazon' and you are defeating the purpose of your argument.

      • 

        Lord Fart Bucket on 15/04/2020 - 08:44

        +1

        Amazon is the obvious one as it is the biggest. And most of the sales are from Amazon, not the small businesses using their platform. Ebay is another one in my opinion.
        I guess the Dutch are trying to limit opportunistic predatory behaviour.

        • 

          [Deactivated] on 15/04/2020 - 09:39

          +1

          @Lord Fart Bucket: Define opportunistic and predatory.

          You've inserted negative adjectives ambiguously to make your point.

          One can easily say that the government, on behalf of small businesses, are using the opportunity to win a voting block by preying on a voting block they consider less valuable.

          • 

            Lord Fart Bucket on 15/04/2020 - 10:26

            @[Deactivated]: Opportunistic: exploiting immediate opportunities, especially regardless of planning or principle.
            Predatory: seeking to exploit others.

            Nothing ambiguous about the way i inserted them.

            • 

              [Deactivated] on 15/04/2020 - 12:10

              +1

              @Lord Fart Bucket: What are their actual business policies that is more opportunistic/predatory than their small business counterpart?

              Every business is built on opportunity.

              The ambiguity is from using adjectives as though the use of the words warrant judgement.

              Ie. A bad business is bad because it is bad. I know what bad means, it has a definition, to do things that are not good. So what exactly constitutes doing something bad?

              To that effect, what exactly is Amazon doing that small businesses aren't doing that would make them opportunistic and predatory?

• 

  greatlamp on 15/04/2020 - 08:32

  A lot of big box stores sell items that are not essential, but their more specialised competition has been forced to close.

  It is an interesting proposal

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  wallet72 on 15/04/2020 - 08:37

  I grew up in WA, where the sun would stop shining if shops opened after 12 on Saturday and Satan himself would smash any shop that dared to open on Sunday, so I get the whole trade restriction thing.
  I just don't know if banning a business from having a sale is the right thing. I'd prefer to see a short term rule that stopped suppliers and wholesalers giving special lower prices to big chains, meaning every retailer would start with the same wholesale cost.

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  wallet72 on 15/04/2020 - 08:55

  +1

  so taking a step back, in Australia what would define a 'big chain'? For example Good Guys stores are almost all franchises, so does that fit the definition? Harvey Norman is notorious for having departments in his 'stores' as independent franchises as well. Is JB Hi Fi a big chain - they seem to sell everything these days.

  • 

    Lord Fart Bucket on 15/04/2020 - 09:04

    For me, a definition would be the ethos behind it all. Using buying power and willing to take minimal or no profit in order to (permanently) hurt their competition. I guess it comes to a fair play rule?

  • 

    Baysew on 15/04/2020 - 09:51

    +1

    For example Good Guys stores are almost all franchises

    They are no longer franchises since JB Hi-Fi purchased the Good Guys.

• 

  kahn on 15/04/2020 - 08:55

  +5

  This could be the first recent Amazon post that won't expire 5 minutes after posting.

  • 

    Lord Fart Bucket on 15/04/2020 - 08:56

    LOL. It's been 40 minutes, i guess you're right. Though it isn't solely about Amazon, IMHO.

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  GG57 on 15/04/2020 - 09:04

  Wasn't France looking at similar legislation, back at the time of the Black Friday sales?

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  JimmyF on 15/04/2020 - 09:16

  to ban big chains from putting on big sales until 1 July, in order to help small business who have had to close their doors temporarily

  huh? They are closed, so how does a 'big store' having a sale hurt them?

  So you want the big stores to save up all the sales until the little stores open? I think it would be better to put a hold sales once the small stores open up again.

  • 

    Lord Fart Bucket on 15/04/2020 - 10:29

    huh? They are closed, so how does a 'big store' having a sale hurt them?

    Not all stores are closed. Similar to Australia, not everything is closed. It's usually the larger stores that remain open.

    So you want the big stores to save up all the sales until the little stores open?

    I don't know. I think I'd like some sort of level playing field, to help the economy in the long run.

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  [Deactivated] on 15/04/2020 - 09:20

  I think it's a bit moot. Supply chains will be drying up quite soon and there won't be significant sales. Shipping costs and times have shot up during this period.

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  [Deactivated] on 15/04/2020 - 09:34

  As a small business owner myself, I can acknowledge when a bigger business has a better business model. I have made adjustments to ensure I earn my living before I become obsolete. Retail has been losing ground to online giants for over a decade. Retail obsolescence was a long time coming.

  Everyone, even the biggest giant, eventually faces obsolescence.

  Some will cry foul that governments bail out big corporates. That's a winning argument against a point not made. Neither big nor small businesses should be bailed out. Bailing out either via direct financial injection or protectionism simply creates a bigger top heavy monstrosity.

  Artificially propping anyone up can only happen for so long before it is to the great detriment of a nation's reputation for commerce and eventually, just a great detriment, period.

  • 

    Lord Fart Bucket on 15/04/2020 - 10:34

    +1

    I agree that propping up isn't working. We've done that with the automotive industry too long. And it didn't do anything.

• 

  Austaurean on 15/04/2020 - 09:38

  Its my sons birthday this month and having to look at places like BigW, Target and Kmart, their stocks are not what they normally would be. A few holes in the shelves here n there…

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  GG57 on 15/04/2020 - 09:57

  Apparently, as a result of a lot of businesses not being open, there is an almighty delay in moving cargo that has arrived in Australia, such that the ports and storage facilities are becoming congested, with a flow-on potential for abandoned or damaged cargo.

  When businesses return to work, the whole supply chain will be in catch-up for months (maybe longer).
  Hopefully those in business will continue to receive assistance, such as this type of measure, for as long as it is needed. Not good news for the OzB community.

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  crashloaded on 15/04/2020 - 16:13

  I don't get it? How will it stop Amazon? People that already shop online will continue to shop online once bricks and mortar reopen.

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  brendanm on 15/04/2020 - 17:04

  Yes please, the more government intervention in everything, the better!