Friday, June 29, 2007

Couple of interesting tidbits in the paper today that could, in theory, positively affect my business. In reality, I suspect they'll have little or no affect.

First is the online sales tax. It seems fundamentally unfair to me that brick and mortar stores should have to collect and pay sales taxes, while their competition online doesn't.

In Oregon, it has a bit less effect, but a bit of help on decreasing the online pricing competition wouldn't hurt, either.

Thing is, I'm pretty sure loopholes will be found, and enforcement will be impossible.

An interesting side note; if sales taxes are collected at the state of origin, then Oregon would become Online capital of the U.S. We'd be the Belize (Flags of Convenience); the Switzerland (banking); the Delaware (Incorporation); the Florida (personal bankruptcy) of online shopping.


The second bit is more interesting to me. The Supreme Court will allow base pricing. Again, the biggest problem will be enforcement, on the part of the manufacturer. It could also have the unintended effect of driving even more business online, where enforcement is much harder. After all, you can walk into my store and see what I'm charging. But I could have any number of e-bay accounts, etc. where it would be pretty hard to track me down. So loopholes and enforcement will make the whole thing mostly moot.

Still, it's interesting to contemplate an alternate history, of say, sports cards.

A new 'premium' brand emerges. You can only buy it at brick and mortar stores; "Authorized Dealers" who must charge you a minimum price. The brand is expensive, but very limited.

In reality, there are many 'premium' brands on the market today. But they can be sold for less than cost the day after they come out, and often are. Perpetual flea markets, like Frank and Sons in California, can blow the stuff out for 3% profit. No brand is safe.

Kinda makes mincemeat of collecting, frankly.

Then, there was the interesting exception of Beanie Babies. Ty insisted that you buy in quantity, and that you neither undercharge or overcharge your product. I always wondered how he got past the 'anti-trust' measure that the Supreme Court has just overturned. I think he did it by implying that you could have your account taken away, rather than spelling it out. He'd send a notice about how he wanted accounts to respect his wishes or he would take them off the list; a week later he would make a 'request' that they stick to pricing.

Beanie Babies were a fad. But I'm convinced they lasted a year longer than normal because he was able to create artificial shortages and enforce pricing.

Another interesting alternative reality: Scholastic Press insists that all Harry Potter books be sold for full price.

Gone the advantage of Amazon, of Cost-Go, of Barnes and Nobles. A level playing field. How many fewer Harry Potter books would be sold? Hell, I want to read the damn thing, don't you? So what? 10.00 more isn't going to break me.

Just saying....

1 comment:

dkgoodman said...

Suppose they came up with 50 categories of people, depending on their age, gender, place of birth and other details. Or just the last two digits of their SSN, divided in half. So you have 50 different types of people. When one of them buys a book in your store, you have to charge them a different tax depending on which of the 50 tax types they are. How would that affect your business?

That's the problem with online sales. If every state has a different taxing method, it makes it difficult to establish the price.

I think regional taxes of any kind are unfair. Why should I pay more for something because I live in state X or city Z?

Back in the 70's (or early 80's) I remember Apple dropping some accounts because they discounted Apple computers. There was a big to-do about that.