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Gerry Harvey is a whinger

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Inside Shoulder

Nathan Sharpe (72)
Gerry Harvey made his large fortune when none of us had any choice about where to shop. As the internet has bitten into his business he first complained and then tried to compete: the boat had sailed and, in any event, his online offering is pathetic compared to almost any other tech website.

So now we have no one to blame but ourselves for the coming downturn because we are not spending money in his stores any more - including presumably the dud one in Ireland.

A classic flat track bully!
 

waratahjesus

Greg Davis (50)
I'm with him a bit, don't care a but as well.I saw him talk a while ago and one point he made was basically customers in his stores were looking and playing with items, deciding what they like then ordering it online for 200 less. So he had become a display place for other business. It's an interesting concept that if the trends continue this way, you may have very little chance to actually see an item before paying for it.

Gerry has every right to speak his mind, while people may not agree, it doesn't take away his right and hs understanding of business. If business changes to much and Gerry closes down and slashes jobs, the same people complaining about hi complaining will complian still, he is in a no win situation.
 

Schadenfreude

John Solomon (38)
Apart from having already made millions you mean?

Or that he came up with a business model quite a while ago that was very successful, and he's not making quite as much now that everyone in Australia has a massive TV?
 

MrTimms

Ken Catchpole (46)
Staff member
one point he made was basically customers in his stores were looking and playing with items, deciding what they like then ordering it online for 200 less. So he had become a display place for other business.

That is a great point. But I think it wouldn't happen if the mark-up wasn't so large.

Basically his business model has been all used up and he needs to move with the times, he could still run a successful business if he were to drastically slash his mark ups then sell services (which can't be purchased online) and make his profit there. Just one idea, but we shouldn't have to stagnate because he has.

You are also right, he is welcome to his opinion, I don't begrudge him that.
 

Inside Shoulder

Nathan Sharpe (72)
The point about his opinion is that he expresses it when his interests are at stake but presents it as altruism: for instance, suggesting that we should spend or Australia will be stuffed - we need to spend or his franchise will stuffed is the real message.
There are good reasons why people are not spending their money with him, or rather his franchisees, including fear of the collapse of the Australian miracle.
 

Badger

Bill McLean (32)
Yeah, Harvey is entitled to his opinion, but to blame consumers, the government etc for his current business predicament is poor form. He should put his energies towards working on a new strategy for the future. If he is unwilling or unable to do so, then perhaps it's time to sell up and move on.

Futhermore, Harvey should have a hard long look in the mirror as I recall he said he didn't think the internet would have much impact on his business in the mid-2000s. As wrong a call as you can get.

Besides, why should the government come to his aid? It sounds like the mantra of many in big business, when things go pear shaped, they expect government intervention, but when things are rosy, the government is told to butt out.
 

rugbysmartarse

Alan Cameron (40)
I work in the retail property industry so these arguments are all familiar to me. Ice also had some run ins with Gerry. Don't know if you recall his war on a neighboring shopping centre that was expanding in penrith? I was developing that centre for the owner. He is an a grad knob in person who rise to use his Aussie battler image as leverage through current affairs shows to garner any sort of support from bogans.

On the online v physical retail - it will increase over the next few years, and do so dramatically. But like all things it will reach an equilibrium. Because australia is further behind other countries we can see where it sits overseas, and it's around 15% of total retail spend is online. In Australia we are around 7-8% (depending on who's figures you read) and a lot of that has been in the
Sat few years so it seems like a meteoric rise.

Gerry's problem is that one of the 2 areas to be biggest hit is his biggest profit earner. Furniture and renovation goods are only big turnover lines when there is high residential property sales and development, and that market has been slow for a few years so that part of his business is also slow. That, and his furniture offer is pretty average. Plus he already dropped a massive amount of cash on the Space stores, not realizing how small the market is for high end furniture.

Let's just say I would invest in HN
 

Torn Hammy

Johnnie Wallace (23)
Harvey has one good argument.

HN francises employ 100's of Australian photographic experts while the Singapore based online camera mob employ zero Australians.

Gerry will really squeal when China emdraces online selling.
 

Inside Shoulder

Nathan Sharpe (72)
Harvey has one good argument.

HN francises employ 100's of Australian photographic experts while the Singapore based online camera mob employ zero Australians.

Gerry will really squeal when China emdraces online selling.
online selling from china.......how the hell would you know what you're getting and giving them a credit card: given their disregard for ip laws that could be taking your life in your hands..........unless you're maxed out


Sent from my iPad using Tapatalk
 

sonny crockett

Allen Oxlade (6)
Harvery Norman is alittle dishonest in how it promotes some of it's gear. Have been looking to upgrade to a Canon EOS 5D Mark II for some time. Harvery Norman's price, $3599, complete with a sign that says don't get fooled into buying cheaper online because you will become the importer, and be liable for import duties and other taxes. This would be the case, if you were in fact going to be the importer. So, the place that I usually buy my cameras and lenses from, online, but based on the Gold Coast, and you can go and pickup your gear, selling the same camera for $2300. 4 or 5 Australians work there, and from there employ other Aussies to delvier, couriers etc. However, one of the online operators with offices in Aus, and employees in Aus, sells the same camera for $1800, including taxes, including freight, including margin, delviered to my door, within 4 days. I assume that Harvey Norman would be buying at pretty good numbers, so margins look strong, if they actually sell any. Pretty hard also to go in and feel this gear, it is locked up. Even better, Canon released the Mark III last Friday, and I can buy it on line for $3700 or thereabouts, about the same prices as Harvery Norman is selling the 3 year old model for. There is just a tad of dishonesty in thier spiel there. Thankfully I have procrastinated long enough, didn't buy the Mark II and can now grab the MArk III
 

rugbysmartarse

Alan Cameron (40)
Hi End Cameras are one area where we have been getting ripped off for years. Because the trunover volume has been so low (traditionally) the retailers have held high margins on them to cover the cost of storage, display etc. I went looking for a wide angle lense for my wife's SLR and the best price I could find in sydney was $890 - I found it onlne from the UK, shipped, for $250. How could I not go with that?

I know the internet will not kill retailing, because I know it will kill only about 15-20% of it. Unfortunately for Gerry, his business is within that 15-20%
 

sonny crockett

Allen Oxlade (6)
Yeh I did the same with the new 70 to 200 2.8, up to $3K in some places, bought it for $1800. Thing is though, that $1200 saving will get spent in or go towards building another house or renovating one I own, my leisure spend just goes down and frees up cash to do other capital growth stuff. Not sure I am about to start feeling sorry for Gerry yet.
 

Bullrush

John Hipwell (52)
Can I ask where you guys get your camera deals from? My wife has just started getting ito it pretty hard-core and the prices for some of the lenses etc are gonna bankrupt me!!
 

Moses

Simon Poidevin (60)
Staff member
If he closed his retail and went online with it, slashing Australian jobs, would you see anything wrong with it?
No, I believe it's the Government's role to provide employment, the role of a Business is to maximise returns to shareholders.
 

sonny crockett

Allen Oxlade (6)
Just like in rugby, good business folks will employ good lawyers and accountants to find the grey ambiguous sides of various laws to maximize those returns. Good returns coupled with growth though, equal better employment opportunities. So whatever govenment do or get up to, there will be ways around it.
 
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