Better The Devil You Know!

Very recently someone came up to me with a big smile on their face.  What had happened is this, in 2010 a lot of their loyal customers had not re ordered for 2011.  Sensing a problem this person called on said customers to ask why.  Are you unhappy with the service? No was the reply Are you unhappy with the the product? No was the reply.  Are you unhappy with the price? Yes was the reply!  A newcomer had come into the market offering a very similar product at about 30% lower than him.  The supplier rang around and got the same story from the said ‘loyal customers’  Knowing that he had offered his best price he basically let the business go.  A little disapointed that none of his’loyal customers’ had tipped him of or even placed a call he just put it down to clicky money grabbing industry that is the Australian Ski Scene.

Very recently there was a spike in business and the loyal customer base was coming back, in droves, even before the new stock had been delivered!  Supplier wondered why?  Supplier decided to find out!

Turns out that cheaper supplier had counted on a 50% deposit from the customer prior to shipment.  Knowing the Australian Ski Industry more expensive supplier nearly fell off the chair laughing, explaining that it was a miracle to get paid in the current climate and that it would be next to impossible to extract a deposit out of any of the Australian Retailers!

So, less expensive supplier said to his customers, ‘well no deposit was made, so no product has been made’  Of course this caused massive issues to the ‘loyal customer base’ with the Australian Ski Season just about to start.

A flurry of phone calls and emails came in to the more expensive supplier, asking if there was any available stock.  More expensive supplier said that there was some available stock as he had bought in some extra to try to fill demand in the season.  A few of the ‘loyal customer base’ even asked if the pre season discount was available?  Thinking that this was very cheeky, but wanting to keep ‘the loyal customer’ this was passed on.

What a lot of stress for a few dollars, especially when the product concerned is a rental product that turns profit over manytimes its value in one season.

Lots of messages here, I am sure I dont need to say anymore.

Moving on to NSW

In My Opinion,

Talking about small business swimming in a big pond,  Perisher Resort has very strict ‘conditions’ on what independent stores can sell in the ski-tube building.  One recent comment was that this retailer was unable to sell such items as gloves or apres boots or even toboggans!  Why, well this is reserved for Perisher owned stores, independents are not allowed to compete!

So you say, is this not a restriction of trade in Australia? Yes, you bet it is!  Specific stores have sort legal opinion on this via a few firms and the resounding result is that YES it is not legal.

The legal advice also said that whilst the stores have a strong case, Perisher have  great cash resources behind them and any such action would be very expensive and the likelyhood of coming out the other end solvent would be doubtful.  It was also said that Perisher MAY make it difficult (in fact probably would) to get another lease or make further changes to lease to make it even more restrictive, so it’s a case of put up and shut up or just packup your bat and ball and go home.

Great Legal system we have, small business at a disadvantage whilst the big boys run rings around them.

I guess a retailer could alway not sign up under the lease and go elsewhere like Jindabyne where you can never have too many Snow Stores!

Hello world!

Today’s topic is Falls Creek Resort in Victoria Australia.  Those who read this will be quite familiar with the ongoing saga over the village transport system in winter, commonly referred to as Oversnow.  There has been a lot comments over the years as to its function or rather dis-function, so that does not need to be rehashed.

As you may or may not know the entity that owns oversnow also has leases on all of the Falls Creek Lift Company eateries on the mountain, these too have been subject to many comments over the years.

What you may not know is the fact that Cloud 9 Resturant situated on snow at the top of wombats ramble run has a component of this area that is designated as PUBLIC SHELTER.  The leasee of Cloud 9 has REFUSED people to bring up their own food or provide FREE drinking water as part of the PUBLIC SHELTER requirements.

Now, I dont know if this is an issue with the Lease between the lift company and falls creek resort management (govt) or if its an issue with the sub-lease from the lift company to the current lessor of Cloud 9.

What I do know is that the current lessor of cloud 9 will simply not allow it and is saying that he will lose revenue over it, which I guess could be true, but on the flipside maybe they could actually profit from it, from increased traffic though via people who would have never walked into the place before (and there are plenty of people that have not!)

So, how does this get fixed!  Well, Falls Creek Resort Management (FCRM) have to extend the building to include a seperate area where the general public can shelter and eat their own supplied lunch etc.  Who pays for this?  Well if you are a victorian it comes out of your taxes so it’s you!  It will be started at the end of the season.

Issue here is that someone has stuffed up big time, it’s either the Lift Company or FCRM, I am sure you can work it out.  What even makes it worse is the inability of the current cloud 9 lessor to work with either FCRM or the lift company to come up with an amicable solution that would cost a hell of a lot less than extending a building, especially when the lessors lease is just about up!

So, in the end another Victorian Resort which does not turn a profit by defualt will be further in the Red this year, and the victorian people will be paying for it all because someone was sloppy with the paperwork!