WHY ARE YOU PAYING RETAIL?
Todd Alexander has been working in retail for the past 20 years. So when he asks the question, why pay retail? the answer is well worth listening to.
Whether you’re buying a new kitchen, a designer frock or a weekend away, Todd knows the secret to getting the most bang for your buck. His little handbook is packed full of tips to make even the most lukewarm shopper keen to track down a bargain.
With Christmas only months away, The Hoopla’s Meredith Jaffé asked Todd a few questions about how to make those precious pennies go even further.
MJ According to large retailers, Australian consumers are already onto e-tail. Why write this book?
TA I felt that consumers weren’t using online to the best of their ability. The lines between on and off-line shopping have increasingly blurred because of technology. So I wanted to give them information on how to be a better shopper in store and online.
What are Australian retailers doing wrong from the consumers’ point of view?
The main driver for consumer choice is price competitiveness. Retail is an old business with old business models based on high margins. Technology means people can price compare in a matter of seconds. Retailers are focussing in on small areas like GST but 10 percent in price is not going to make enough difference. It’s about not having to get in the car, drive to the mall, find a park and then try and find what you want to buy in the shop. People can shop at night, when the kids are in bed, compare prices and make informed buying decisions.
Australia is renowned as a nation of early adopters. Why do you think Australian retailers have been so slow to adopt e-commerce?
Some of them tried it 10-15 years ago and proclaimed it a horrible failure. In my view, they didn’t stick at it long enough and they tended to tack online at the end of the sales process. The whole business model behind retail is about floor space, high wages and city-centric. Therefore they took a very lack-lustre approach to online. Consumers won’t stand for it and off-shore retailers are happy to take our business. They know consumers are looking for the best deal, not just in terms of price but the fashion, the range and the service is so much better when we shop with international retailers.
What is the best bargain you ever got?
As I talk about in the book, I recently renovated my home and with renovating comes some large purchases. I really wanted a stone bath that retails for between $6000 to $10,000 which was way over my budget. So I hunted around and found a wholesaler, who didn’t sell direct to the public but was happy for me to come in and have a look at the showroom. He had clearance stock and I was able to buy my bath for half price.
But the flip side to that story is that as part of renovating I had so much stuff to get rid off. I had a whole kitchen that was really run down, screen doors, tiles. I was looking at six skiploads which was going to cost me $1200. I put the whole lot up for auction on e-bay starting at 99 cents, pick-up only. Within the week I sold 50 items, made $4000 and saved the $1200 in skip fees – not to mention the inconvenience.
So the best bargain can be getting rid of unwanted stuff more efficiently and using that money to buy what you do need or donate to charity.
What are your top three tips for avoiding retail prices?
1. Become a good haggler. Never ever pay full price and make yourself comfortable with the art of negotiation. Some people argue that online shopping removes the need to negotiate but there will always be some instances where you will have to shop in-store. Every time I ask for a discount I get one. If we all asked for a discount, it will influence change.
2. Research online as effectively as you can. A lot of people think they know how to use the internet but there are a lot of bargain hunting tools people are completely unaware of.
3. Invest in smartphone technology because that is power in your hand. There are apps where you can price check whilst you are standing in the store and you can make up your mind if you buy here or shop elsewhere. Show the shop assistant the item on screen and ask if they can match the price.
The thing to remember is that retailers have $$ sales targets. The trick is to shop towards the end of the day/week/month when there is more likelihood they have not met their target.
| Page 1 of 2 | next >> |
6 Responses to this article
-
Louisa October 19, 2011
As someone who loves a bargain I will look out for this book. Speaking of which, the Book Depository in the UK has super cheap prices and ships for free. Items take about 10 days.
-
Di October 19, 2011
I’m reading this as a retailer who doesn’t mark up beyond reasonable, in fact sells at the same prices as our wholesalers so is actually less expensive than shopping on line because there’s no postage, and we gift wrap, deliver and go out of our way to source and order in what our wonderful customers are looking for – the best service we can possibly offer – and we sell meaningful products with an ethos, employ people without sales targets and play a big part in our community. Not every retailer can be put in the same basket! Lots of retailers have gone or are going out of business – money is going out of the country and jobs are being lost? We all want to save money but please don’t demonise retailers in such a blanket way. There are great benefits in shopping locally for our community as well as our economy.
-
WENDY GREEN October 19, 2011
I read Todd’s answers with a touch of trepidation – where are we leaving our small retailers? I’m not too concerned about the big players – they will always come up trumps – but the little guys are suffering.
Di – you sound like a rare business woman to me (where is your store?) and I certainly hope you do well and not only keep your head above water but go on from strength to strength!
I can see that one day in the not so distant future, we will be ‘trying on’ clothes on-line in some sort of simulation of ourselves and then ordering direct from the supplier once we find something that suits our shape! Perhaps the age of the huge shopping malls – like Westfield – will be a thing of the past; already you don’t have to go out to do your grocery shopping, gift shopping, etc.
This leaves the dilemma of finding other opportunities to socialise, for – and let’s be honest – shopping has become a social outlet or pastime especially for the younger generation. And parents these days seem to think taking their kids to Westfield during the school holidays passes for an educational outing!
Gotta scratch your head and wonder, where are we going as a society?
Well, I know one group of retailers who won’t be worried …. you can’t have your hair done on-line!! -
Di October 20, 2011
Thanks Wendy, I wholeheartedly agree with what you’re saying – we’re in Rozelle, Tali Gallery, and we use our sales with our fair trading mark up to fund lots of projects which benefit Indigenous employment and education as well as public education about Indigenous culture – working with cultural advisors and Indigenous artists through workshops and exhibitions. We have a really friendly community here which is noticeably interactive and often commented on by visitors from other regions of Sydney. There is a strong sense of belonging, consideration, care and concern. My local green grocer still asks after my 19 year old son, by name and she hasn’t seen him since he was 5! The cafe owners are very accommodating and helpful. Customers often ask us for something specifically meaningful and relevant to the recipient of a gift – say, something related to healing for someone who’s sick – so a notebook or a pendant adorned with a bush medicine artwork could be suggested – or a cushion cover with an artwork story that will comfort someone who’s lost someone close – you don’t get that online! This type of social interaction is priceless!
-
Di October 20, 2011
Thanks Wendy, I wholeheartedly agree with what you’re saying – we’re in Rozelle, Tali Gallery, and we use our sales to fund lots of projects which benefit Indigenous employment and education as well as public education about Indigenous culture – working with cultural advisors and Indigenous artists through workshops and exhibitions. We have a really friendly community here which is noticeably interactive and often commented on by visitors from other regions of Sydney. There is a strong sense of belonging, consideration, care and concern. My local green grocer still asks after my 19 year old son, by name and she hasn’t seen him since he was 5! The cafe owners are very accommodating and helpful. Customers often ask us for something specifically relevant to the recipient of a gift – say, something related to healing for someone who’s sick – so a notebook or a pendant adorned with a bush medicine artwork could be suggested – or a cushion cover with an artwork story that will comfort someone who’s lost someone close – you don’t get that online! This type of social interaction is priceless!
