Goverment investigating IT price gouging

• 

  tonyjzx on 25/09/2012 - 23:11

  firstly… price matching Officeworks with Amazon??? really?

  MSY is a stretch

  2ndly prices of IT products here is generally ok… except on some stuff like high end laptops and of course, software

  living in australia is expensive

  you may as well complain about why a car in the US is also a lot cheaper than here

• 

  ozhunter on 26/09/2012 - 00:22

  +1

  What items does the 5% reduction apply to?
  All identical products and services with identical terms and conditions that are stocked at Officeworks and in stock at our competitor.

  As Amazon is an American online store, they could argue that they are not their competitor. Also warranties may not be identical. I agree that they should make their price-match guarantee more clear.

• 

  Paul Atreides on 26/09/2012 - 00:27

  +2

  ^agreed with above, but also adding on

  i just wanna say please dont kill it for the rest of us, OW is good in terms of their pricing matching(usually) and the last thing you want is for them to simply cancel or discontinue their price matching policy.

  simply, this is just going overboard. sounds like so much trouble for so little outcome, i mean how much are you actually saving here? id just write a complaint to OW about how the manager handled the situation, cos it sounds like he could have done a lot better.

  sure price gouging happens here in AUS, but you're making a fuss over a hard-drive price difference… would get further if you compared some laptops, cameras & lenses etc.

  give you an example:
  Canon RETAIL price for canon 24-105mm f/4l lens is
  US: $1149
  AU: $1799

  and im sure there are better examples out there..

  • 

    [Deactivated] on 26/09/2012 - 15:18

    I'm not the one who encouraged/ is carrying out the investigation in price gouging. It's the government doing this.

    I am not concerned about the harddrive either as I prefer to buy it in the US rather than with some guy who tears my head off, only because I mention that the terms and conditions of their price matching, are not clear about online shops worldwide.
    It's a difference of $100,- by the way. $179 plus post in the US and $289 in Australia.

    Also, how am I ruining it for the rest of "us"? I am talking about simply making their terms and conditions clearer so they do not need to get pee'd off when someone asks for price matching a US based online shop.
    All they have to do is add the words "only Australian" before the "online shops" bit.

    That's all.

• 

  scrimshaw on 26/09/2012 - 03:28

  +1

  To be fair, its the suppliers that set the prices for us, and whatever the retailers charge us is the sum of the profit margin plus cost of the product.

  So getting Officeworks to price match am international retailer like Amazon is a rather outrageous proposition because Amazon is geographically much closer to their suppliers. to Aussie businesses can't compete with the likes of Amazon, since international import tariff rates and shipping fees add to the overall cost of the drive.

• 

  lukeneo on 26/09/2012 - 07:36

  -1

  Hi All,

  I have previously worked for an I.T. Distributor and still
  Currently work in I.T., I am not agreeing with office works pricing but the general I.T. products you find in jb hifi etc have around 10-15% markup, you may look at the pricing in America but you have to remember the manufacturer will provide pricing based on the location, quantity ordered. This gets passed to a distributor then to a reseller e.g OW then to the end user, for example their will be around $20 margin on a $100 hard drive from the distributor selling and you buying this. Australia has a very small population to America and also shipping costs need to be factored In, MSY will make usually $2 per item and buy At special pricing from distributors because of the quantity they order and getting the special pricing passed down from the manufacturer

• 

  daver on 26/09/2012 - 12:12

  I've been trying to track down one 50MB/s&100MB/s S102 PRO 32GB ADATA Flash Key where it's not total extortion-countless Aussie retailers are on the scene but nobody supplies them here. Last I checked, these were being delivered domestically the United States and Canada for USD 18.00 x Amazon — I'd gladly accept it local for Import shipping & GST, therefore AUD22.50 only I expect our local scabs won't settle for less than 50-70% unconscionable markups. Hope the .gov.au gets them as no one else will. :-|

• 

  [Deactivated] on 26/09/2012 - 15:39

  Again, I am pretty sure I said in my op that I did not put in a complaint and that I don't think I will, because like some of you, I do not think it will help me in any way.
  IF I did put in a complaint, it wasn't to get the harddrive at a better price as I prefer to buy it in the US now after having the guy biting my head off.
  IF I did put in the complaint, it would have been to get them to just simply make a tiny change to their terms and conditions to make it more clear to the general public, that they only price match Australian shops.

  I am merely wondering if this price gouging investigation is going to do any good at all. As I mentioned in my op, I personally don't think anything will come from it. IMO it's a waste of time and tax payers money. Prices will stay the same for quite some time, thus people will continue to buy in the US as some don't care much about warranty if the difference in pricing is big enough.

  Oh and ehm I am not the one who encouraged the government to investigate. They figured out for themselves that something isn't quite right. So please don't shoot the messenger. I happened to find out about the investigation after listening to an interview on ABC with Steve Wozniak.

  • 

    tonyjzx on 26/09/2012 - 15:53

    you do know they also tried to set up a fuel watch program… went no where

    people are upset that you would think that officeworks would pricematch Amazon

    cant you see that's ridiculous?

    as I said they aren't even bound to honour price quotes from computer stores because its not a 'like industry'

    why should Officeworks match any online… even Australian online when the cost structures are so different?

    does an online store have to pay the rent, staff, electricity, stock levels as Officeworks?

    in a perfect world, i agree with you… the world should be a flat playing field where everything is competitive but we live in Australia… and you are more than a little bit naive

    • 

      [Deactivated] on 26/09/2012 - 16:25

      If it is so ridiculous to price match OW, than why do I find I am not the only one and that a lot of people are actually successful? After going to OW yesterday, I went back on OzB and found that I wasn't the only one who thought online shops meant just that, online shops regardless of location.

      So if there are more people confused of their terms and conditions, they simply just need to alter it a bit and noone will ask them to price match again.

      And I agree, they do not have to pricematch, but they have chosen to do so because other businesses do the same.
      I am happy for them to NOT pricematch with amazon or other specific online retailers, as long as they put it in their terms and conditions. Had it been in there, I wouldn't have bothered to drive all the way to town to visit OW. I would have just signed into Amazon and ordered it straightaway from them.

      I doubt I am being naive though. I am just another Australian trying to find the best deal for their wallet.

• 

  Peace Maker on 26/09/2012 - 16:18

  I share your frustration Mischief but I think making the retailer the target is misguided.

  A perfect example is the price Adobe and others charge for digital downloads. It is crazy there is such a wide difference in price for a digital product in similar markets.

  IIRC the Adobe digital pricing difference kicked off the Senate inquiry.

  • 

    [Deactivated] on 26/09/2012 - 16:28

    I'm not making the retailer the target. I am not upset with the fact that they do not price match Amazon. It really doesn't bother me as I just order it from Amazon.
    What bothers me is that the guy goes bananas because I am merely pointing out that the terms and conditions might need to be updated to prevent more managers from ripping customers heads off.

    Update the terms and conditions and all will be well. People will not waste their time to go to OW in the first place and will just buy overseas straight up. Everyone keeps their heart rate stable and noone gets insulted/hurt :o)

    • 

      scrimshaw on 26/09/2012 - 17:17

      me is that the guy goes bananas

      Well you were causing a bit of mischief, so I'd guess him going bananas is rather justified.

      Guy's just doing his job, asking him to bend the rules for you so you can save a bit of cash puts his neck on the line, of course that would get him flustered.

      • 

        Peace Maker on 26/09/2012 - 17:53

        It would be rare for someone to go bananas without some form of provocation.

        Personally I have always found OW to be really good with price matching. If you are happy to buy your gear OS, stick with it. I buy a lot from OS myself but will be buy local and pay a little more for peace of mind with RMA etc.

        Horses for courses.

      • 

        tonyjzx on 26/09/2012 - 20:25

        you have to look at it from the Officeworks employee's perspecitive

        firstly matching amazon isn't on

        he earns an avg. wage… he has to justify why an australian B&M store is matching a US online store

        there really is no justification

        why would this guy who doesnt care if he sells it or not, risk his job just so someone matches it with a US store?

        there's no way this would fly with his supervisor…

        i'm all for taking liberties with stores but underlying this has to be some semblence of reasonableness

        this is not a reasonable price match and i dont know why some people can't see that

• 

  Shout It Out on 26/09/2012 - 23:05

  Hi, I'm only new here but found this thread interesting and just had to comment.
  The op is asking opinions on the investigation on price gouging. I do think this will not achieve much either. Incomes are relatively higher in Australia which is why we have to pay more. I do not think this investigation and whatever results show up, will change a thing.
  I too heard the interview with Steve Wozniak and I do agree that with a select few brands like Apple, there might be something going on, but what can the government really do about it? As long as Australians are willing to pay these high prices, retailers will continue to charge them.

  About the Office Work manager. I guess going nuts just because someone wants to do a price comparison that is excluded under their terms and conditions, isn't really on. A simple "Sorry no can do. Take it up with the big boss if you wish" would be enough. Saying things like "I dare you to go to fair Trading" is a little unprofessional in my humble opinion.

  Personally, I don't like shopping with Office Works. They once did a price match on some Brother label tapes and failed to give me the 5% off. I didn't realize until I came home. When I went back to ask them why I wasn't given the 5% discount, they said it was bad luck but I should've mentioned it on the spot.
  That kind of customer service isn't something I am willing to pay for. I prefer in that case, to go and get it at the shop that is cheaper in the first place, even if that means I do not get that extra 5% off.

  By the way, if any of you are familiar with Whirlpool, you should go and have a look and see how many people have done the same as Mischief did and went to Office Works to get them to price match with US companies. Quite a few got away with it too. Mostly items like desk/laptops and peripherals.

  Mischief, I guess you were just unlucky with that particular Office Works.

• 

  Jabba the Hutt on 27/09/2012 - 01:00

  +1

  Damn whinging kids these days! When I was your age…

  • The dollar hovered around 70 US cents.
  • Personal computer goods attracted a 22% wholesale tax.
  • The closest thing to Staticice was a copy of Australian Personal Computer.
  • Hard disk storage space cost $250 per gigabyte.
  • $500 would buy you only 14" of viewable screen space, albeit with contrast ratios and black levels far better than these newfangled LCDs :D

  <sits back and waits to be one-upped by someone older still>

  • 

    tonyjzx on 27/09/2012 - 01:04

    +1

    yes but electricity wasn't this expensive

    you could afford to buy a house on a single income… and ergo rent wasnt anywhere near as bad as it is now

    no carbon tax

    petrol was 50c

    • 

      Peace Maker on 27/09/2012 - 18:50

      +1

      Ohhh snap!

    • 

      uccoffee on 22/03/2013 - 12:55

      annual mean house price in sydney :(
      1993 188,000
      1994 192,375
      1995 196,750
      1996 211,125
      1997 233,250
      1998 248,750
      1999 272,500
      2000 287,000
      2001 322,500
      2002 387,500
      2003 454,250

      • 

        _Bruce_ on 22/03/2013 - 15:44

        This is an unpopular view, but a large part of this actually reflects the growth in wealth in middle class Australia.

  • 

    Geewhizz on 23/03/2013 - 07:06

    Hard disk storage space cost $250 per gigabyte.

    The fact that you even mention gigabytes suggests that you're not old enough to be saying, "When I was your age….."

    • 

      ubor on 23/03/2013 - 12:38

      I remember the first external hard drive for my McIntosh Plus is only 20MB. The good old days.

• 

  RockyRaccoon on 19/03/2013 - 08:31

  I wonder if they will investigate this as well

  http://www.smh.com.au/national/paying-through-the-nose-for-c…

• 

  deltakilo on 22/03/2013 - 12:15

  Inquiry being broadcast live this morning (WA time):
  http://webcast.aph.gov.au/livebroadcasting/asx2/hms10v_100K.…

  Adobe currently on now (9ish and so far failing miserably to justify their pricing) followed by Microsoft