Canon Australia will no longer publish recommended retail pricing, citing their use in presenting unfair price comparisons versus actual selling prices online. As well, local prices are being disadvantaged by a lack of GST on imported goods.
“We are getting hammered with prices going in different directions and keep taking hits on unfair price comparisons using local RRP versus tax-free selling prices in the global market,” Canon Australia general manager marketing, Darren Ryan, told ttmag.com.au.
“It’s not a like-for-like price comparison and, until there is a level playing field, Canon will not publish RRPs. There’s only one price that’s relevant for comparison – the price paid at the register – and there are too many issues in the mix like GST and transport that are not taken into account when prices are compared online.”
Ryan said Canon decided to take a blanket policy on pricing because there is no upside to publishing RRPs. “It causes too much pain. Consumers are confused by conflicting prices and retailers are losing out if RRPs prevent consumers from checking actual value at local retail stores.”
He stressed that global pricing is a complex issue that requires shared responsibility and the Federal Government has a role to play in keeping up with changes in the global market. “Not having a GST on imported product creates a structural imbalance that rewards overseas over local industry, putting our retailers in jeopardy.
“Globally there are a range of factors affecting pricing, such as supply of product, different margins, different tax rates, statutory imposts and drastically different pay scales. It’s all part of the puzzle. We have to work together to achieve equilibrium in a global market,” Ryan said.