Fair Prices For Australians

mxyzptik on 22/03/2013 - 16:49

Hearing comments about and from today's Fair Prices Hearing in Canberra - twitter: #FairIT4Oz - reminds me how annoying I have found it in the past, where some - EVEN here on the wonderful Ozbargain site, including Oxpete who seems to have a conflict of interest - have found it necessary to defend the big boys, including Apple who were at the hearing today.

Anyone who defends the multinationals' prices (esp. when they pay little or no tax) is doing the bargain-hunting Australian consumer a disservice … as they are if they defend the pricing of Woolworths & Coles, just to name one of Australia's consumer gouging oligopolies. Other culprits have included Foxtel, Telstra & other telecoms companies, utilities, the Banks ($1,400 profit per man, woman & child) etc etc etc

imho :)

https://twitter.com/search?q=%23FairIT4Oz&src=tren

General Discussion

Comments

  • _Bruce_ on 22/03/2013 - 17:57
    -1

    Being upset is fine, but how do you solve it?

    One solution I can think of is to charge 30% tax on digital products. The market price is not likely to change to much (after a short term spike they blame on the tax). They will end up profiting the same as the US, Australians will pay the same amount they do now, and the difference will at least go to funding the country.

    This solution will NEVER get public support though. I'm sure there are other issues, but it would never happen anyway.

    • Gina Rinehart on 25/03/2013 - 00:29

      That is the worst "solution" to this problem I think I have ever heard. No, the prices wouldn't go back to normal. Any digital program would go up by 30% and stay that way, and they would put a big thing saying "includes digital tax" and that'd be that.

      • _Bruce_ on 25/03/2013 - 07:37

        If this is the case then why do these items not cost more in the US? Why don't they cost even more here now?

        These price points exist because:

        1: They are above the minimum sustainable amount.

        2: They are below what people will pay to make it viable.

        US prices confirm 1, and as 2 is the only (real) limit otherwise, it is not a great leap to assume that is the current cap, and will remain the cap even if profits are reduced, provided point 1 is not reached.

        • Gina Rinehart on 25/03/2013 - 20:24
          +1

          The items don't cost more in the US because overall things in the US do not cost more. The products cost the same to make and distribute to Australia, so they should cost the same (or a much more comparable price) than the US, especially digital products.

          The fact of the matter is that Australians are getting ripped off - plain and simple.

  • cruise on 22/03/2013 - 18:14
    +3

    The best way is to not spend your money with them if you can help it. Coles and Woolies may offer $1 a litre milk but their profits are not affected they just screw the farmer so I wont buy the $1 Litre milk. Dyson charge Aussies 949 for the same vac (made next door in Malaysia) they sell in the US for 599 (or 578 AUD at today's rates)and when I spoke to Dyson to find out why they told me they price to market so if people are willing to pay they will charge, so I don't buy Dyson anymore.

    It will never be a level playing field because if a company with shareholders can make more money from a market they have an obligation to their shareholders to increase profits. Protesting with your wallet (or purse) is probably the only way they will actually feel it.

    • Sick of This on 22/03/2013 - 19:48

      "when I spoke to Dyson to find out why they told me they price to market so if people are willing to pay they will charge"

      The only remarkable thing about that is that you managed to speak to someone who actually knew that fact, was able to articulate it and was willing to be honest about it.

      You dealt with it the right way. If you don't like something, money talks.

    • leonheart1 on 23/03/2013 - 13:12

      Coles and Woolies may offer $1 a litre milk but their profits are not affected they just screw the farmer so I wont buy the $1 Litre milk.

      Sorry but how is cheaper milk a bad thing?

      • cruise on 25/03/2013 - 13:26
        +1

        I guess cheaper milk isn't a bad thing if that's what your after, the point was if you don't like what a company does you do have some power by choosing not to support the practices. If enough people do it, then sometimes things change. Personally though I don't think sacrificing the livelihood of dairy farmers for $1 milk is fair, it may be easier on my wallet but at the expense of someone else, although I also understand that the impact on others may not be a consideration for some who buy $1 milk.

  • jason101 on 22/03/2013 - 20:25
    +2

    Voting with your wallet is the only way to go, every business I know bases their price on "the maximum the market will pay" and really, why shouldn't they?

    Don't blame the businesses, blame the consumers who support the theory by continuing to buy.

    • sophiasmith on 22/03/2013 - 22:05

      So because Apple/Adobe/Microsoft et al. jack up prices we should buy inferior products, start using gimp….

      • kristo on 23/03/2013 - 12:37

        Apple and Microsoft don't make anything that competes with GIMP, and it is a pretty average alternative for a seasoned user of Photoshop. however, Kingsoft Office is making huge strides to compete with Microsoft Office, both as a free and paid program.

      • SirFlibbled on 26/03/2013 - 11:25

        Apple doesn't jack up prices. Their hardware is roughly what it is internationally (give or tax a small percentage for currency changes). You need to rememeber the US prices don't include taxes which are added on post sale in the US, even still we can't blame them if the prices were 10% more due to the GST.

        Their itunes product is another story, but that's because of the media companies not Apple. Maybe they should take some of the blame for not using their market power to force prices down in Australia..

        Adobe on the other hand can burn in hell with their prices. I simply wont ever buy their product.

  • SirFlibbled on 26/03/2013 - 11:23

    They are businesses and I defend their right to charge what ever they want. Only in a very limited circumstance should the Govt step in and regulate prices (ie a monopoly provider of an essential service).

    What I take issue with is these businesses not only charging us through the nose, but then using agreements in other juridictions outside of where the Govt can get to them to limit supply to us so that we're forced to pay their ridiculous prices, or in some cases not even offer us a service.

    For my wedding I wanted to buy custom Chuck Taylors. I was forced (at an additional cost) to go through with an assisted purchase because Converse just simply refuse to accept Australian credit cards. It's not like the Au site even offers the service so I'm confused how I'm canabilising their Australian distributor.

    But ultimately a business has the right to over charge us for their product, just as much as I have the right to choose not to buy that product and circumvent their geoblocks in any way I see fit.

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