Kogan Blog
The Missing Benefits of a High Aussie Dollar
Posted on .Consumer advocacy and advice group "Choice" recently confirmed what many Australians have suspected for years: too many big Australian retailers are artificially hiking up the prices of many of their goods, instead of passing on the benefits of the high Aussie dollar to consumers.
At Kogan we think that a strong Aussie dollar should naturally mean better deals for local shoppers.
Between 1/12/2010 and 27/5/2011, the Australian dollar went up 10% against the US dollar - from 0.96 to 1.06.
During the same period, the price of the Kogan:
32" LED dropped 43% from $799 to $459
42" LED dropped 41% from $1,099 to $649
46" LED dropped 41% from $1,699 to $999
55" LED dropped 33% from $2,399 to $1,599
We pass on the full benefit of the rising AUD to consumers, through regular price drops. We also drop prices every time a new efficiency in our business further reduces our costs.
We think it’s about time Australia's largest retailers start passing through some of the savings they reap from the high Aussie dollar.
Harvey Norman, David Jones, Myer, and others have again banded together and asked the Government to let them open their stores at whatever hours they wish. We think this is a great idea! Kogan.com.au is operational all day, everyday 24/7/365. We love competition and anything that will bring more choice to the consumer.
But, the traditional retailers need to realise that a stiff price at 3pm doesn’t suddenly become competitive at midnight. Unlike some other things in life, high prices don’t grow more attractive during the midnight hours!
As we’ve shown, while the Aussie dollar rises, we’ve been able to pass the savings on to you in a big way. We love competition, and we’re happy that consumers will be able to shop whenever they wish, but Aussies love a bargain, and the best bargains can usually be found online.
What do you think? Do you think the full benefits of the high Aussie dollar are being fairly passed on by retailers? Are you happy about the proposal to extend retail trading hours?