Home prices are not the only thing trending downward in Australia, retail sales are being affected as well. There are many underlying causes for the year-over-year decline in retail sales. The “wealth effect” from increasing home prices is starting to erode for starters. However, I think that real competition, from online stores, is finally starting to catch up with the stone age policies of the typical Australian retailer.
I am a borderline evangelist for Bluetooth headphones. I have given them away as gifts and literally forced people to try them out. For the last several years, I have used the Motorola S9HD and S10 models. Once I made the switch to wireless, there was no going back. I was blown away by the sound quality of my first pair of S9HDs and was shocked when they stopped working. I have now come to accept that I sweat a lot and that my headphones are only going to last my six months to a year.
When I shorted out my last pair, I went to an Australian big box retailer to replace them. I spent a decent amount of time trying to find a salesperson to help. When I finally got someone’s attention, I was told, “If we carry them, they would be on this aisle.” Not very reassuring, but I finally found a single pair of Bluetooth headphones for the bargain price of $150. They were not the brand that I had grown comfortable using and I didn’t want to spend that much money on something that unknown.
I did what any sensible shopper would do and pulled out my smartphone and searched. The reviews were mostly positive and I definitely would have considered purchasing the headphones. However, the EXACT same headphones that were selling for $150 at the retailer that advertises “always low prices” could be had online for $40.
I realize that Australian retailers are faced with high labor costs, increased shipping costs, higher rents, and a few other factors. However, no savvy consumer would be willing to spend 375% more for an identical item. I wound up buying the familiar Motorola S10s from Amazon. Even with a $40 expedited shipping fee, I wound up paying roughly half of what I would have spent at retail.
As if the stratospheric prices were not enough of a deterrent, I have found the customer service to be sorely lacking. I have had difficulty making returns for items which have been unopened and with a receipt. This is not an isolated experience, every time I have gone to make a return, it has been a painful ordeal. In the end, the item is usually taken back but the experience is miserable.
I have conditioned myself to ask the question, “What is your return policy?” before purchasing ANYTHING. I have been in situations where I asked and was told, “We don’t like to take returns.”
“But what is your policy?”
“We don’t like to do it.”
“I didn’t ask if you liked to do returns, I asked if you will take them.”
Eye roll. “If it is done within seven days and you have a receipt we will take the return.”
“So your policy is to take returns, but do it grudgingly?”
Real conversation. For the most part, I refuse to make any purchase outside of food from a retailer. It is far, far cheaper to comparison shop online from a reputable e-tailer. What’s more, if there are issues with the merchandise, it can be returned hassle free which is more than I can say from my experiences here.
Australian retailers need to wake up from their slumber and realize that consumers now have dynamic pricing information right in their pocket. The competition is no longer the guy down the street, but the e-tailer in a different country. Consumers will always spend money, but to get them to spend their hard earned dollar, the experience should be enjoyable. The consumer can easily be convinced to purchase out of impulse without price checking if they are living in the moment. With the decline of the wealth effect and difficult consumer spending ahead; unless the retail experience, service, and prices become competitive - retailers will continue to lose customers.
I am a borderline evangelist for Bluetooth headphones. I have given them away as gifts and literally forced people to try them out. For the last several years, I have used the Motorola S9HD and S10 models. Once I made the switch to wireless, there was no going back. I was blown away by the sound quality of my first pair of S9HDs and was shocked when they stopped working. I have now come to accept that I sweat a lot and that my headphones are only going to last my six months to a year.
When I shorted out my last pair, I went to an Australian big box retailer to replace them. I spent a decent amount of time trying to find a salesperson to help. When I finally got someone’s attention, I was told, “If we carry them, they would be on this aisle.” Not very reassuring, but I finally found a single pair of Bluetooth headphones for the bargain price of $150. They were not the brand that I had grown comfortable using and I didn’t want to spend that much money on something that unknown.
I did what any sensible shopper would do and pulled out my smartphone and searched. The reviews were mostly positive and I definitely would have considered purchasing the headphones. However, the EXACT same headphones that were selling for $150 at the retailer that advertises “always low prices” could be had online for $40.
I realize that Australian retailers are faced with high labor costs, increased shipping costs, higher rents, and a few other factors. However, no savvy consumer would be willing to spend 375% more for an identical item. I wound up buying the familiar Motorola S10s from Amazon. Even with a $40 expedited shipping fee, I wound up paying roughly half of what I would have spent at retail.
As if the stratospheric prices were not enough of a deterrent, I have found the customer service to be sorely lacking. I have had difficulty making returns for items which have been unopened and with a receipt. This is not an isolated experience, every time I have gone to make a return, it has been a painful ordeal. In the end, the item is usually taken back but the experience is miserable.
I have conditioned myself to ask the question, “What is your return policy?” before purchasing ANYTHING. I have been in situations where I asked and was told, “We don’t like to take returns.”
“But what is your policy?”
“We don’t like to do it.”
“I didn’t ask if you liked to do returns, I asked if you will take them.”
Eye roll. “If it is done within seven days and you have a receipt we will take the return.”
“So your policy is to take returns, but do it grudgingly?”
Real conversation. For the most part, I refuse to make any purchase outside of food from a retailer. It is far, far cheaper to comparison shop online from a reputable e-tailer. What’s more, if there are issues with the merchandise, it can be returned hassle free which is more than I can say from my experiences here.
Australian retailers need to wake up from their slumber and realize that consumers now have dynamic pricing information right in their pocket. The competition is no longer the guy down the street, but the e-tailer in a different country. Consumers will always spend money, but to get them to spend their hard earned dollar, the experience should be enjoyable. The consumer can easily be convinced to purchase out of impulse without price checking if they are living in the moment. With the decline of the wealth effect and difficult consumer spending ahead; unless the retail experience, service, and prices become competitive - retailers will continue to lose customers.
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