wraggster
May 30th, 2011, 12:21
Aussie gamers - a bit miffed that you're spending over $100 for a new console game, even while the Aussie dollar is soaring? You're not alone: retail consumer watchdog CHOICE submitted a document to the Productivity Commission last week calling on "importers, distributors and retailers to pass some of the savings they are enjoying thanks to the strong Aussie dollar on to Australian consumers."
According to CHOICE, Australian consumers are able to save about 90% on the price of Portal 2 if they purchase abroad
At a time when the Australian dollar is sitting comfortably above parity with the US, gamers are increasingly turning to online stores based abroad to buy their games. "Who can blame them," CHOICE ask in a statement, "when Xbox and PlayStation 3 games cost 91% more from a major Australian online retailer than from an overseas online website based in Asia?"
CHOICE's director of campaigns and communications Christopher Zinn thinks Australian retailers are becoming complacent. "The pressure from overseas online competition is a much needed wake up for Australian retailers to be more competitive," he wrote.
"We need to move beyond a complacent culture of high prices, high margins and poor service."
The statement also dismisses the retail industry's claim that the GST-free threshold for products under $1000 is the cause of local grief. "Adding 10% to the cost of a product that is 91% cheaper is not an effective deterrent," CHOICE writes.
"This is a distraction from the real issue of excessive mark-ups and challenges the industry to offer realistic explanations on why prices are so high or - better yet - begin offering better deals for Australian consumers."
"The imposition of a GST on overseas purchases will not make the threat of far better deals overseas go away."
CHOICE's submission will not fall on deaf ears: the Productivity Commission's inquiry into the structure and performance of the Australian retail industry is currently under way, which aims - among other things - to explore "broader issues contributing to the increase in online purchasing by Australian consumers."
Stay tuned. In the meantime, do you buy your games locally or abroad? What is the appeal of shopping domestically?
http://www.computerandvideogames.com/303636/news/consumer-watchdog-slams-aussie-game-retailers/?cid=OTC-RSS&attr=CVG-General-RSS
According to CHOICE, Australian consumers are able to save about 90% on the price of Portal 2 if they purchase abroad
At a time when the Australian dollar is sitting comfortably above parity with the US, gamers are increasingly turning to online stores based abroad to buy their games. "Who can blame them," CHOICE ask in a statement, "when Xbox and PlayStation 3 games cost 91% more from a major Australian online retailer than from an overseas online website based in Asia?"
CHOICE's director of campaigns and communications Christopher Zinn thinks Australian retailers are becoming complacent. "The pressure from overseas online competition is a much needed wake up for Australian retailers to be more competitive," he wrote.
"We need to move beyond a complacent culture of high prices, high margins and poor service."
The statement also dismisses the retail industry's claim that the GST-free threshold for products under $1000 is the cause of local grief. "Adding 10% to the cost of a product that is 91% cheaper is not an effective deterrent," CHOICE writes.
"This is a distraction from the real issue of excessive mark-ups and challenges the industry to offer realistic explanations on why prices are so high or - better yet - begin offering better deals for Australian consumers."
"The imposition of a GST on overseas purchases will not make the threat of far better deals overseas go away."
CHOICE's submission will not fall on deaf ears: the Productivity Commission's inquiry into the structure and performance of the Australian retail industry is currently under way, which aims - among other things - to explore "broader issues contributing to the increase in online purchasing by Australian consumers."
Stay tuned. In the meantime, do you buy your games locally or abroad? What is the appeal of shopping domestically?
http://www.computerandvideogames.com/303636/news/consumer-watchdog-slams-aussie-game-retailers/?cid=OTC-RSS&attr=CVG-General-RSS