No subject


Tue Nov 29 10:43:08 WST 2011


$150, to $500,000, to set up a trading website, and the costs of having
permanent Internet connection, are about $1,000 a year, plus a setup fee
(the ISP's on the list, will no doubt have varying rates), but, the
thing is that, providing a business does it realistically, and,
feasibly, it should profit from such a move. Staffing costs, for the
turnover, would be significantly less, balancing the cost of the
Internet trading. Similarly, display costs, in shops, would be reduced,
relative to the turnover, etc. Payment options can vary, disregarding
credit cards; payment can be made by electronic banking, or, COD. From
what I understand, Internet trading is cheaper, and, more reliable, than
"bricks and mortar" (what a cliche!) trading.

I note that nedkelly is apparently absorbing the GST, thereby keeping
the costs of the books (to the customers) down. The consequences of
that, are for them to determine (I think it unwise), but, the GST,
supposedly, does not have quite as much impact on their prices. Perhaps,
if they have sufficent turnover, they can afford to absorb the GST, with
reduced profit margins.

But, with that kind of competition, bookshops that deal only with
physical presence, in a place that doesn't encourage people (the perth
city council blocking off the roads, and, making driving around in
perth, an ordeal, and, similarly with parking, which is another cost
that has to be considered, in the price of the books), will find it
increasingly difficult to survive.

I think that it is not a matter of size (websites that sell music and
porn, and make heaps of money, operate from servers in people's
bedrooms, from stories broadcast on TV), but, more a resistance to keep
up with the current technology.

And, as Colin pointed out, it is weird, that a bookshop does not embrace
the technology of the books that it sells. It is a bit like a Mitsubishi
dealer driving a skoda (but then, they are probably equally safe), or,
perhaps, more like a Bentley dealer driving a skoda. You would have to
wonder why a person who sells such good cars (well, maybe not quite as
good, now, now that they are volkswagens), drives such a car.

-- 

Bret Busby

......................................



More information about the plug mailing list