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14 December 10

The Upside to the GST Threshold for Aussie Retails

cartThere has been so much talk in the last week about the Government reducing the $1000 GST-free threshold to curb shoppers buying online from overseas suppliers. Given that the Australian dollar is so high a lot of international businesses are capitalising on our dollar. MYER has just announced they will be opening a new online store and the goods will be shipped directly out of China to compete. MYER chief executive Bernie Brookes stated in The Age “If you can’t beat them join them”. Other retailers like Harvey Norman’s Gerry Harvey would also like to see the $1000 GST-free threshold lowered. But these are big businesses what does it mean for you? The small to medium sized businesses, that’s my concern….you’re my concern.

So what is Australia’s managing director of wholesaler International Fashion Group saying?

David Mendels, managing director of wholesaler International Fashion Group said the fact that Australian consumers were able to purchase up to A$1000 from overseas, duty and GST free, at a saving of around 20 per cent, was "killing local retail businesses."

"First you'll have retailers declining and people losing their jobs in retail, then the wholesalers will be affected, then advertising revenue for the media will go. It's a snowball effect."

Now before you go closing your doors and crying broke remember there are always two sides to every coin. There are always options and it may not be as bad as what you may think or read.

Bra Queen Australia’s number 1 Lingerie Business Coach says this doesn’t have to be the end of the world and in fact now is a good time to relevant your business goals and direction and get back on track. Here’s a different perspective-

# FACT: For those small businesses who import goods you may or may not know that this very $1000 duty and GST free threshold may have saved you thousand’s over the years.

# FACT: Yes businesses will try and capitalise on the strong Australian dollar and some people will buy online however if you build a strong business this WILL NOT affect you.

# FACT: The blame game is on there have been reports that the media have done nothing to help. Know this no one gets anywhere by blaming so if you want your business to succeed you can not blame anything or anyone.

# FACT: If you let this enter your mindset as a possibility you have already lost…you have been defeated. You can win this race and here’s how you can do it:

1.      Build a strong brand- People want to know YOU they want to know what it’s like behind the business. Social media is now a must for your business…no excuses. (Please do not do the hard sell online it doesn’t work and that goes for your newsletter as well) Via social media you can interact with your customers and increase your network by interacting with new people. This becomes a warm lead because trust has been established and people buy because they TRUST.

2.      Add value- Do that little bit extra, that little thing they don’t expect you to do. Make their day and they will always come back for you. As I said above add value give them information and educate them. A great way to do this is via your newsletter.

3.      Substance- Think about when someone apologises but they don’t mean it there heart isn’t in it, now think of when someone offers a heart felt I’m so sorry. You know the difference don’t you? What am I getting at? Have passion in your voice, in your step and in the air you breathe. Have substance and love what you do this is infectious we’ll always want more.

Do these three things and I promise you your business will be fine because have you noticed the only people who are up in arms about this are in fact the department stores? Where there is no value  beyond the dollar, no customer service and know substance the three things that make customers into loyal customers they aren’t giving them anything extra, there is no incentive for them to come back.

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