tuaki23 May 2013"not every store has the luxury of being financially backed by Hillsong.... " Hahaha!
ONLINE VS RETAIL
tuaki23 May 2013
Tommy Breaks23 May 2013I support my local shops for sure i will never buy something online i'd rather let someone at a skateshop make a bit of cash being the middle man. plus you get it then and there, look at concave on boards see the actual shape of the wheels try the shoes and clothes on! KEEP IT LOCAL help your local shop out cause one day they will help you!
DeathMoth26 May 2013the whole "support your local" aside, I think that in the globalised world of business, skateboard distributors in Australia are clinging for dear life to an outdated business model. keep in mind that I just said "I think", I've got no proof, and I've got no better ideas of my own.
However, I just think that there absolutely MUST be a way for skateboard products to find their way to the shelves of Australian skate shops so that we aren't paying double what they pay in the US. $100 is a pretty ridiculous price to pay for a board that could last as little as one session. I understand that retailers are suffering and its only because of the prices. Someone needs to use their brain and business smarts to work out a better (cheaper way) of distributing.
However, I just think that there absolutely MUST be a way for skateboard products to find their way to the shelves of Australian skate shops so that we aren't paying double what they pay in the US. $100 is a pretty ridiculous price to pay for a board that could last as little as one session. I understand that retailers are suffering and its only because of the prices. Someone needs to use their brain and business smarts to work out a better (cheaper way) of distributing.
should buy in aus but like ^^ said, paying double the price its hard to compare. its like everything though. benefit buying o/s its cheaper in most cases. benefit here is if something goes wrong just take it back for replacement or repair.
good customer service skills in a local skater-run shop will definitley top the overseas experience. i know this doesn't speak for the whole shop/staff, but i went in to my new local (at the time) in Geelong, and the little twerp behind the desk didn't even look up, kept playing with his iphone, and after some silence and me continuing to try and ask him something, eventually moved me on to someone else. i was needing to buying a new deck that day. fuck that. respect fot those who run local however.
haha yeah that sounds about right
sorry :)
sorry :)
krim30 May 2013When I went to Geelong skate shop I was greeted with beer and free old skools. I must have a nice looking face.
pretty mouth
I went to Geelong skateshop and all I got was this free wristie
pet_flies26 June 2013I’m all for supporting skaters, but boards cost money and no one pays me to skate, so before I support anyone else’s skating, I need to support the one skater who pays my rent – me!
No one wants skateshops to disappear, but at the same time its hard to justify spending twice as much for the same products just to support the local industry – the harsh reality is that with online these days I no longer need a skate shop.
I want to contribute in my own way to support local skateboarding, so I’d be happy to pay a higher price a decent local DVD that is made well ($20-50 seems reasonable).
It’s a sad truth but retail dying across all industries and the result is that it is skate shops are becoming a less profitable way to make money through a retired distribution model, unfortunately this means aren’t as many people who can make a living from skateboarding.
It’s the 21st century; the online business model has been designed to cut out the middle men, and results in a cheaper product for the end user. You can blame the internet, but 15 years ago it was normal to expect to pay $150-$200 for pair of skate shoes – now it’s much less (plus shipping and handling).
There will always be a local scene as long as there are skaters doing it for the love , and that’s the exact reason why we’re on a skateboarding forum.. we’re not getting paid for this either.
My suggestion to skateshop owners would be either;
Cutting back on your overheads, this may mean paying your staff less (which is sad), or maybe leasing a smaller shop to cut back on rent.
Add something else to the whole skateshop experience. Turntables spinning, in-store ramps, free stickers...
Consider a different business model; Maybe selling shop boards, Maybe a joint venture with another business so you could sell more things out of the one shop….(Skateshop/bakery?, Skateshop/newsagent?. Skateshop/bar?)?
No one wants skateshops to disappear, but at the same time its hard to justify spending twice as much for the same products just to support the local industry – the harsh reality is that with online these days I no longer need a skate shop.
I want to contribute in my own way to support local skateboarding, so I’d be happy to pay a higher price a decent local DVD that is made well ($20-50 seems reasonable).
It’s a sad truth but retail dying across all industries and the result is that it is skate shops are becoming a less profitable way to make money through a retired distribution model, unfortunately this means aren’t as many people who can make a living from skateboarding.
It’s the 21st century; the online business model has been designed to cut out the middle men, and results in a cheaper product for the end user. You can blame the internet, but 15 years ago it was normal to expect to pay $150-$200 for pair of skate shoes – now it’s much less (plus shipping and handling).
There will always be a local scene as long as there are skaters doing it for the love , and that’s the exact reason why we’re on a skateboarding forum.. we’re not getting paid for this either.
My suggestion to skateshop owners would be either;
Cutting back on your overheads, this may mean paying your staff less (which is sad), or maybe leasing a smaller shop to cut back on rent.
Add something else to the whole skateshop experience. Turntables spinning, in-store ramps, free stickers...
Consider a different business model; Maybe selling shop boards, Maybe a joint venture with another business so you could sell more things out of the one shop….(Skateshop/bakery?, Skateshop/newsagent?. Skateshop/bar?)?
Ron Swanson26 June 2013Skateshop/strip club/brothel/crack den.
reesm8bigproblems26 June 2013So over continuously seeing this debate occur. But I will put my two cents in and just say right now the conversion rate is pretty hein, by the time an international postage fee is added to your item it's not going to be saving you a whole lot.
imgne_26 June 2013Alright, some of those would make sense to average Joe who doesn't understand why the margins are set in the first place. A brands aim (well at least it should be) is to be able to sell to shops in order to get their product/name out there to the masses. So using really basic mathematics, let’s just say everyone is aiming for their 100% mark-up and by no means is this meant to sound like its exactly what happens; it’s just my way of explaining the situation.
A major brand gets product made at a manufacturer, pays $10 per unit, then sells it to distributor for $20/unit, the distributor then sells it to shops at $40/unit and then the shop sells it public for $80.
Small brands who self distribute could obviously make more of a margin by not having a third party distributor to sell to, but most small brands end up paying more per unit as they don't order the same larger quantities as the bigger brands do so it evidently ends up being around the same price anyway.
Everyone pays rent, employee's wages & utilities, but there's also the main thing everyone loves to whinge & bitch about in skateboarding, sponsorship. Paying riders or simply giving them free product costs money, not to mention when brands fork out product for events & comps. There's also the advertisement side of things, everybody loves skate mags and seeing the hard work photographers & filmer’s put in for companies to showcase within the publishment’s, online or print. All these little things add up and the money has to come from somewhere and that’s why product cost's more from buying through a skateshop, as opposed to directly online.
Most skateshop’s work hard to make things happen for skateboarders & skateboarding within their local areas, but the brands are also always there to help the shops and back most of things they do.
So that’s why we say support your local
Oh, as for having a ramp in your store, public liability in QLD is a bitch, but it’s still a pretty awesome concept for a store that wants to add something new.
A major brand gets product made at a manufacturer, pays $10 per unit, then sells it to distributor for $20/unit, the distributor then sells it to shops at $40/unit and then the shop sells it public for $80.
Small brands who self distribute could obviously make more of a margin by not having a third party distributor to sell to, but most small brands end up paying more per unit as they don't order the same larger quantities as the bigger brands do so it evidently ends up being around the same price anyway.
Everyone pays rent, employee's wages & utilities, but there's also the main thing everyone loves to whinge & bitch about in skateboarding, sponsorship. Paying riders or simply giving them free product costs money, not to mention when brands fork out product for events & comps. There's also the advertisement side of things, everybody loves skate mags and seeing the hard work photographers & filmer’s put in for companies to showcase within the publishment’s, online or print. All these little things add up and the money has to come from somewhere and that’s why product cost's more from buying through a skateshop, as opposed to directly online.
Most skateshop’s work hard to make things happen for skateboarders & skateboarding within their local areas, but the brands are also always there to help the shops and back most of things they do.
So that’s why we say support your local
Oh, as for having a ramp in your store, public liability in QLD is a bitch, but it’s still a pretty awesome concept for a store that wants to add something new.
pet_flies26 June 2013If I want 1x pro model deck and a sheet of griptape in my hands, a skateshop can provide this service for about $100 - $150.
An online store can provide the same service for around $95 - $100.
But if I order 5x decks with grip, then it works out to be about $370 including shipping, which is = $75 per deck.
The problem with Australian retail are the high overheads (rent, wages, insurance), and the retailers are being ripped off by distributors, this makes it necessary for shops to put up prices in order to make a profit.
Asutralians get ripped off so much, iTunes charges twices as much to download the same song if you do it from an Australian account... Why? Because they can. They justify it by comparing it to recommended retail price.
An online store can provide the same service for around $95 - $100.
But if I order 5x decks with grip, then it works out to be about $370 including shipping, which is = $75 per deck.
The problem with Australian retail are the high overheads (rent, wages, insurance), and the retailers are being ripped off by distributors, this makes it necessary for shops to put up prices in order to make a profit.
Asutralians get ripped off so much, iTunes charges twices as much to download the same song if you do it from an Australian account... Why? Because they can. They justify it by comparing it to recommended retail price.
imgne_26 June 2013Of course Australian's are getting ripped off, our country was found by convicts...
Seriously though, $150 for a pro decks is a ripoff and if you were to buy 5 decks at one time from my shop, I would give you a discount and I reckon every other decent skateshop out there would do the same.
Seriously though, $150 for a pro decks is a ripoff and if you were to buy 5 decks at one time from my shop, I would give you a discount and I reckon every other decent skateshop out there would do the same.
DeathMoth26 June 2013Can somebody from within the industry, and preferably not a distributor, tell me what parts of the Australian distribution network could not be run by the US distributors.
That would cut out one of the two middlemen and reduce the price to consumers. And don't say "they put on the demos man" because if the US distributors wanted to move product on our shores, they know well and good that they still need to send out riders to do demos. The industry was different in the 90s when I grew up. Kwala, Hardcore etc were integral in building the network and getting the goods here. Their involvement was undoubtedly important. However, 15-20 years on, things are much, much different. I'd love to see one level of the distribution chain removed for the benefit of consumers. But yeh, I'd like to know the reasons why that wouldn't work, I'm sure some smarty bum would have something to say.
That would cut out one of the two middlemen and reduce the price to consumers. And don't say "they put on the demos man" because if the US distributors wanted to move product on our shores, they know well and good that they still need to send out riders to do demos. The industry was different in the 90s when I grew up. Kwala, Hardcore etc were integral in building the network and getting the goods here. Their involvement was undoubtedly important. However, 15-20 years on, things are much, much different. I'd love to see one level of the distribution chain removed for the benefit of consumers. But yeh, I'd like to know the reasons why that wouldn't work, I'm sure some smarty bum would have something to say.
Cheets27 June 2013I agree with reesm8bigproblems
A lot of this became an issue with the conversion rate. America deflated their dollar, they made money because of it.
Australias get paid alot more than Americans on average, minimum wage is like $8 an hour compared to $18 (extremely rough fact based on hear say)
With the conversion rate always being a variable there is no flawless answer, it's a tough one.
A lot of this became an issue with the conversion rate. America deflated their dollar, they made money because of it.
Australias get paid alot more than Americans on average, minimum wage is like $8 an hour compared to $18 (extremely rough fact based on hear say)
With the conversion rate always being a variable there is no flawless answer, it's a tough one.
Mark Brimson27 June 2013What about the tax rate to bring something into the country?
If you are a private customer and bring in less than $1000 you don't have to pay any tax on it, but as soon as it gets over $1000 then you have to pay import tax - not sure how much it is, as I have never had to pay it, but those who do could probably answer that one too.
If you are a business, even if it is under $1000 you would want to declare it and pay the tax man otherwise it will come back to bite you in the end.
Personal shopping regardless of what or how much doesn't attract the tax if each lot is under $1000 so this could be another contributing factor in the price hike once it makes it into the commercial system within this country.
If you are a private customer and bring in less than $1000 you don't have to pay any tax on it, but as soon as it gets over $1000 then you have to pay import tax - not sure how much it is, as I have never had to pay it, but those who do could probably answer that one too.
If you are a business, even if it is under $1000 you would want to declare it and pay the tax man otherwise it will come back to bite you in the end.
Personal shopping regardless of what or how much doesn't attract the tax if each lot is under $1000 so this could be another contributing factor in the price hike once it makes it into the commercial system within this country.
pet_flies27 June 2013I believe the free trade agreement with the US means you don't need to pay duty on items under $1,000.
However they work it out to $1,000 value, not cost.
Not sure if its based on the US Recommended retail price or the Aussie one.
You gotta be careful, but I've never had to pay anything
However they work it out to $1,000 value, not cost.
Not sure if its based on the US Recommended retail price or the Aussie one.
You gotta be careful, but I've never had to pay anything