Author Topic: How much overhead cost?  (Read 4788 times)

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Offline WilSurf

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How much overhead cost?
« on: July 03, 2015, 09:55:29 AM »
I do understand that a physical shop have some overhead cost over an online shop, but 287% more?
The story.
In our house we have  ducted vacuum system what didn't work.
So I bought a new motor and hose and installed it. There was almost no suction but a lot of leaking through the wall inlet valves.
I went online and found these inlet valves for $9.85. They had a listing of dealers and even one in WA close by. Yesterday was the day to go there and when paying he said: That's $129.
??? I told him that according the website of his mother company these valves were $9.85 and the trim plates $5.15.
Yeah he said, I don't know these prices this is what they are. They are probably different.
No, are the same as they are from your head warehouse in Australia.

Back at home I went online, went to the main website of that company and ordered them online: 3 trim plates and 3 inlet valves for a total of $45 delivered.

And they are surprised that nobody wants to buy in the shops anymore?
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Re: How much overhead cost?
« Reply #1 on: July 03, 2015, 10:13:07 AM »
Same thing happened to me with our evaporative air conditioner. The water dump valve carked it about 10 years ago and it cost $19 at the time to replace by myself. It happened again about 2 years ago and the price was well over $120. Same part, but it must have been plated in gold in the intervening 8 years.

Offline Bird

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Re: How much overhead cost?
« Reply #2 on: July 03, 2015, 10:41:00 AM »
Quote from: WilSurf
I told him that according the website of his mother company these valves were $9.85 and the trim plates $5.15.
Yeah he said, I don't know these prices this is what they are. They are probably different.
No, are the same as they are from your head warehouse in Australia.
wen they arrive take a trip back with the receipt or offer to supply him for $50!
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Offline D4D

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Re: How much overhead cost?
« Reply #3 on: July 03, 2015, 11:49:03 AM »
I ditched our ducted vac and bought a Dyson, wife is much happier now as it takes less time to vacuum :)
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Offline Coiled

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Re: How much overhead cost?
« Reply #4 on: July 04, 2015, 08:27:50 AM »
Dick Smith are the worst for this and becomes a joke when you can click and collect from the store too
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Offline noel_w

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Re: How much overhead cost?
« Reply #5 on: July 04, 2015, 10:50:10 AM »
Local pool shop wanted $880 for a replacement pool pump. Found one online for $379 delivered from half way across the state. Same pump make and model. Go figure and that was from a bricks and mortar shop who also deals on his web site.
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Offline WilSurf

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Re: How much overhead cost?
« Reply #6 on: July 15, 2015, 12:24:30 PM »
The parts arrived yesterday, the same as in the store who wanted $129.

I had another win yesterday.
A well known hardware store had the Bosch GSK 18V-Li for $249 while another known hardware store had the same tool for $149.
I asked them about their price match and they replied: Yes we do.
So I got it for $134.10, price match minus 10% and I pulled out a $10 voucher as the store had just opened last weekend.
For $124.10 I have a Bosch cordless skin. It pays off to shop around before you buy.
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Offline BaseCamp

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Re: How much overhead cost?
« Reply #7 on: July 15, 2015, 02:09:24 PM »
I'll swap ya with my Ozito bunny if ya like??
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Offline Nomad

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Re: How much overhead cost?
« Reply #8 on: July 15, 2015, 06:49:01 PM »
If you are buying from a "shop" as opposed to someone sitting in a "warehouse" the rent is probably 3 to 5 times higher alone. Then add on fitout costs, sales staff as opposed to warehouse staff.........blah blah blah.....and 287% is probably not to far off the mark.

I have serious concerns about where the retail market is going to in the future, particularly big box / bulky goods retail.

The internet and ebay etc have had a massive impact on "retail"


Offline jetcrew

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Re: How much overhead cost?
« Reply #9 on: July 15, 2015, 08:09:01 PM »
The parts arrived yesterday, the same as in the store who wanted $129.

I had another win yesterday.
A well known hardware store had the Bosch GSK 18V-Li for $249 while another known hardware store had the same tool for $149.
I asked them about their price match and they replied: Yes we do.
So I got it for $134.10, price match minus 10% and I pulled out a $10 voucher as the store had just opened last weekend.
For $124.10 I have a Bosch cordless skin. It pays off to shop around before you buy.

So you have a positive experience through both means ..online/bricks and mortar .so the positive out of this is that there is still room for both  ;D. For now anyway

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Offline fishfinder

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Re: How much overhead cost?
« Reply #10 on: July 15, 2015, 08:36:46 PM »
I just purchased a car and phoned my insurance company to put a cover note  on it. Next day I did a bit of searching doing on line quotes and did one through my insurance co and it was 30% cheaper on line from the quote they gave  me over the phone ?????
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Offline #jonesy

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Re: How much overhead cost?
« Reply #11 on: July 16, 2015, 09:39:59 AM »
A while ago I was after 3 rolls of wallpaper for a feature wall  Physical shops were about $120 per roll, and it would have to come from Sydney.  I was willing to pay a small premium to support a shop.

Out of curiosity I chekced online and found the exact same in the UK.  Postage was 10pound per roll, which doubled the price.  All up 3 rolls from the UK was cheaper than 1 from a shop and arrived earlier than from Sydney
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Offline slydar

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Re: How much overhead cost?
« Reply #12 on: July 17, 2015, 06:29:10 PM »
yes the future for retailing is a bit sad, just look at the great institutions like grace bros (myer), david jones and all those others like anthony hordern and mark foys (yes the tiles are still on the old store entry) - what miss are the humble career retailers who do what they do for no other real reason than they get the satisfaction of earning an honest living helping people get what they want and imparting their often long-learned advice. I had a spa pump fail last summer and one place i called for a new one talked me through checking to see what the problem actually was and instead of a new pump at over three hundred dollars I ended up needing nothing more than a twenty dollar capacitor that they said I could get at another service centre closer to home save me driving to the next town - not many places do that these days