Tuesday, April 5th, 2011

The strong Aussie dollar and less than honest on-line trading practices are combining to rob Australian consumers of a fair deal, claims Mr Clive Wallace, CEO of WallCann 365.

“The strong Australian dollar has meant two things, one, it has become very expensive to manufacture in Australia so the people who control the money are looking for cheaper places to invest," Mr Wallace says. "Two, they are investing heavily in the Australian banking sector to take advantage of the higher interest rates being offered by Australian banks.

“The irony is Australian banks are flush with overseas money but Australian industry is being deprived of investors which means our manufacturing industry is heading North to China, India and S.E Asia at a rapid rate.

“If this goes on much longer I’m not convinced the manufacturing sector will be able to recover in my lifetime.” A further compounding factor is the high commodity prices that are giving the economy an appearance of health.

“But,” according to Mr Wallace, “it is a false glow because a lot of that money is flowing offshore as multi nationals search for cheaper environments in which to make their products.”

And if all that wasn’t bad enough, Mr Wallace claims the internet is being usurped by traditional off-line businesses that are bringing non economically viable models with poor overseas based service practices and a sloppy retail culture on-line, thereby robbing the Australian consumer of a fair go.

“The lure of the internet is not only convenience, but competitively priced items that allow the consumer to stretch their buying power,” explained Mr Wallace, “but what the big off-line retailers are doing is simply transferring their off-line model to on-line and effectively pretending to be an on-line business.

“The reason on-line items in Australia are so much more expensive than on-line items in America and Europe is that the big on-line operators in Australia are factoring their enormous real estate holdings into the price. A major store with a prominent CBD presence charges for the upkeep of those very expensive premises with every item it sells on-line, despite the fact on-line operators do not need an expensive off-line presence.

“The result is an inflated pricing structure that is, in effect, ripping off Australian on-line shoppers.

"To add insult to injury, because these major off-line businesses do not understand the internet, their websites can be difficult to use. Websites with too many hoops for the user to jump through, means consumers are also being robbed of the convenience factor.

“The model being employed by some unscrupulous operators is to source the cheapest goods possible, almost invariably from China, and sell them for top price to an unsuspecting and trusting public. Or worse, open online virtual stores in China or elsewhere, taking away even the retail jobs from Australia.

“The solution is to build a transition or bridge between online and off line shopping in Australia. It will need honesty in pricing and ramping up the quality of the Australian live help online service to buyers. Our research has established Australian consumers would rather buy on-line from a local supplier at a fair price coupled to great service. Wherever possible WallCann sources and sells Australian made.

“Paying the GST is a minor issue, quality local Australian support and services are much more important.”

WallCann 365 is an Australian owned internet platform designed for local businesses to embrace the internet and sell not only to fellow Australians but to a world audience, particularly China, UK and America.

PIC Available - CAPTION: Clive Wallace, defender of small to medium sized businesses, is being bullied by the strong Aussie Dollar, in the form of Mr Australia contender, Jason Bednarz.

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WallCann 365

WallCann 365 is an Australian owned internet platform designed for small to medium sized businesses to sell worldwide via the internet.
Clive Wallace
P: 8352 7092
M: 0400 771 234
W: www.wallcann.com


WallCann 365, internet sales, strong Aussie Dollar



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