Corporate Admits the "showroom" conce...

Corporate Admits the "showroom" concept is true.

Posted in the Lowes Companies Forum

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nedm

Pembroke, MA

#1 Jul 16, 2012
http://online.wsj.com/article/SB1000142405270... if it doesn't fully load just google the title

"Having one of the most recognized and widely popular Republican leaders take this position gives other politicians comfort that the online sales tax is fair and helps state budgets in crisis," said Scott Mason, a vice president at Lowe's Cos. The retailer says it has a 5% to 10% price disadvantage compared with online rivals, with some customers using its stores to pick products and then ordering them online to avoid sales tax."

Um...so they ARE using the company as a showroom. If they admit that there is a 5-10% price difference on items and if that's the sales tax then what they are admitting is two things.

1) That they aren't willing to take that percentage off (which is a joke since they do it in the store so what's the difference online?)

2) That it is only price being the sole factor here. I thought lowes was supposed to be known for service, not price.

If it was really about 5-10% cheaper then they'd lower it. The fact of the matter is much of what the company sells is cheaper at other chains...period. If it was just about 10% price differences then stores would be busier.
nedm

Mooresville, NC

#2 Jul 17, 2012
nedm wrote:
http://online.wsj.com/article/ SB1000142405270230364400457752 5070594717752.html if it doesn't fully load just google the title
"Having one of the most recognized and widely popular Republican leaders take this position gives other politicians comfort that the online sales tax is fair and helps state budgets in crisis," said Scott Mason, a vice president at Lowe's Cos. The retailer says it has a 5% to 10% price disadvantage compared with online rivals, with some customers using its stores to pick products and then ordering them online to avoid sales tax."
Um...so they ARE using the company as a showroom. If they admit that there is a 5-10% price difference on items and if that's the sales tax then what they are admitting is two things.
1) That they aren't willing to take that percentage off (which is a joke since they do it in the store so what's the difference online?)
2) That it is only price being the sole factor here. I thought lowes was supposed to be known for service, not price.
If it was really about 5-10% cheaper then they'd lower it. The fact of the matter is much of what the company sells is cheaper at other chains...period. If it was just about 10% price differences then stores would be busier.
I really need to get a life
nedm

Pembroke, MA

#3 Jul 17, 2012
Well it was a headline on a basic news source.

Wall Street Journal has the highest circulation of any paper in the country.

Since: Jul 11

Location hidden

#4 Jul 17, 2012
nedm wrote:
Well it was a headline on a basic news source.
Wall Street Journal has the highest circulation of any paper in the country.
http://www.infoplease.com/ipea/A0004420.html

Um, reGoogle.
nedm

Pembroke, MA

#5 Jul 17, 2012
Glad to see you didn't read the bottom

"NOTES: By largest reported circulation, as of March 31, 2006."

Because after all nothing changes in six years time right? Sure you aren't Niblock? I'm sure you didn't see the information at the bottom. That's fine I won't hold it against you.

http://accessabc.wordpress.com/2012/05/01/the...
Updated as of this spring by the industry shows the WSJ is the largest circulation of any newspaper in the country (I'm not even claiming it is a good paper) That is including print and digital.

If I quoting some paper out of Idaho with a circulation of 10k I could see the argument but not with the wall st journal.

Since: Jul 11

Location hidden

#6 Jul 18, 2012
nedm wrote:
Glad to see you didn't read the bottom
"NOTES: By largest reported circulation, as of March 31, 2006."
Because after all nothing changes in six years time right? Sure you aren't Niblock? I'm sure you didn't see the information at the bottom. That's fine I won't hold it against you.
http://accessabc.wordpress.com/2012/05/01/the...
Updated as of this spring by the industry shows the WSJ is the largest circulation of any newspaper in the country (I'm not even claiming it is a good paper) That is including print and digital.
If I quoting some paper out of Idaho with a circulation of 10k I could see the argument but not with the wall st journal.
He's right. I pulled a "nedm". Back into Google withdrawal therapy.
DMxMD

United States

#7 Jul 18, 2012
What they are saying is the price difference between our stores and online isn't enough by its self to make people want to shop online and wait for shipping, but if you factor in the automatic extra 10% people have to pay in sales tax at a store, who wouldn't want to buy online and save that much? Online retailers like amazon have an unfair advantage by not having to charge tax. It's criminal. Either drop the sales tax all together or make online stores pay it too. Otherwise we're all screwed. I won't be able to buy much cheap crap off amazon when I don't have a job.
nedm

Pembroke, MA

#8 Jul 18, 2012
It isn't so much criminal because the same applied to mail order. Not all states tax goods the same way. In Mass the sales tax is 6.25%. Clothing up to $300 worth is not taxed and food isn't (assuming it is served like a meal). Meanwhile Florida taxes groceries.

The rates are not uniform as California has local sales, county sales and state sales when combined can easily get to 10% or higher.

Not all states even have a sales tax..what do you do then? Plenty of people in northeast mass go to NH for shopping and come back. For small things it is pointless but for appiances, cars and furniture it might not be. We have a sales tax free weekened in August which kinda helps.

Taking 10% off is a given at lowes. I've seen it offered plenty of times. Beyond 10% is another story. Besides all someone has to do is go to the post office to get the moving coupon for 10% off.

Online retailers carry much more product than physical stores, comments from customers are prequalified as they have to type out what they want, there are also more specific customer reviews. It isn't even about larger companies but smaller ones that also sell online. If each business had to know what each person in each town in America had to pay for sales taxes it would be quite a task.

People shop online for much more than just a lack of a sales tax and maybe free shipping.
Furby

Mooresville, NC

#9 Jul 19, 2012
nedm wrote:
Not all states even have a sales tax..what do you do then?
Charge the sales tax based on the address being shipped to. It really isn't that difficult.
meade

Bucyrus, OH

#11 Jul 21, 2012
Furby wrote:
<quoted text>
Charge the sales tax based on the address being shipped to. It really isn't that difficult.
There are 90 different tax districts in Ohio alone how many in the US??..so how does one geo-validate a location it is shipped too..what if there is a shipping address or a billing address?...shipped to business address or home address?..all 4 could be in different tax districts...how does a small business do that? satellite map out everyorder to see where they fall...and what if you f-up a location and charge someone 6.25% instead of 6.50 %?

It is a bad idea....i will no be a tax collector for states other than mine
Furby

Mooresville, NC

#12 Jul 21, 2012
meade wrote:
<quoted text>
There are 90 different tax districts in Ohio alone how many in the US??..so how does one geo-validate a location it is shipped too..what if there is a shipping address or a billing address?...shipped to business address or home address?..all 4 could be in different tax districts...how does a small business do that? satellite map out everyorder to see where they fall...and what if you f-up a location and charge someone 6.25% instead of 6.50 %?
It is a bad idea....i will no be a tax collector for states other than mine
People like you are the reason the current federal tax code is thousands of pages long.

Like I said, charge the tax based on the shipping address. The problem with things of this nature is everyone tries to over think them. As for all the different taxes, I am sure there is software out there to help the small business owner.
Furby

Mooresville, NC

#13 Jul 21, 2012
And as for being a tax collector for other states, then don't ship to those states.

Why should you be given an advantage to sell to people living in those states that is not granted to stores that operate there?
nedm

Pembroke, MA

#14 Jul 21, 2012
Furby you cannot simply dismiss other states business otherwise it would be considered discrimination under interstate commerce clause.

Compliance with the law can be annoying to customers because they are not the ones that make it. There are some streets in Mass that do not allow trucks on sundays. It does not matter what the customer or specialist puts down, if a truck makes a delivery to that street on a sunday they will be stopped (and they have). In addition fireworks are illegal here..and yet plenty of companies advertise to drive out of state and imply they should illegally bring them back.

Laws vary dramatically. Sometimes I have to wonder if everyone notices. In Mass for example US flags are tax exempt. If lowes charges the sales tax are they keeping it or somehow giving it back?

As it was said earlier of course Amazon and other are going to go along with the sales tax when they make warehouses that assume next day delivery.
Furby

Mooresville, NC

#15 Jul 21, 2012
nedm wrote:
Furby you cannot simply dismiss other states business otherwise it would be considered discrimination under interstate commerce clause.
You are also overthinking this. If soneone does not want to collect the sales tax for a certain state, then they should not be allowed to ship there...period end of story. This is not discriminating under interstate commerce, in fact the opposite is true. Stores that operate within those states and under the laws of those states are at a disadvantage. They are the ones being descriminated against.

I am not dismissing other states business, on the contrary I am leveling the playing field and making everyone that wants to do business in that state, be it shipping to or operating a retail store within its borders abide by the laws of that state.
nedm

Pembroke, MA

#16 Jul 21, 2012
"If soneone does not want to collect the sales tax for a certain state, then they should not be allowed to ship there...period end of story."

But it has already been up with the supreme court already.
http://en.wikipedia.org/wiki/Quill_Corp._v._N... . Besides under full faith and credit a state cannot block goods and/or services (for the most part) from doing trade across state borders. Let's say you operate in NH or OR Or MT or AK or DE where there is no sales tax. Now you are being asked by other states to charge more and this takes time, money and energy to do so. What's in it for them?

Unless a company has an real PHYSICAL entity within a state then there is no legal obligation to charge sales taxes. I used to work for a company that did vending with food in every state but our customers did not know that. Often times we had to explain to them that we had to because we operated within their state.

Here's what the supreme court pretty much ruled on it.
"Quill Corporation is an office supply retailer. Quill had no physical presence in North Dakota (neither a sales force, nor a retail outlet),[1] but it had a licensed computer software program that some of its North Dakota customers used for checking Quill's current inventories and place orders directly. North Dakota attempted to impose a use tax on Quill, which was struck down by the Supreme Court."

"Stores that operate within those states and under the laws of those states are at a disadvantage. They are the ones being descriminated against."

Technically I agree but there is nothing preventing them from operating online either.

"I am not dismissing other states business, on the contrary I am leveling the playing field and making everyone that wants to do business in that state, be it shipping to or operating a retail store within its borders abide by the laws of that state."

Fair enough but the issue is that this has already been bought to the supreme court. If it is to be brought up again now with the internet being a factor it either has to be brought up with the courts which is a pretty slow process given everything or brought up by congress. Not on the state level but federal. But who honestly is going to say in a campaign season that they want to change the law to have more paying taxes fully knowing a sales tax is a regressive one and hurts the poor more than the rich? I just cannot picture a bunch of people in a coffee house asking someone running for office to raise their taxes.

Eventually I think this will happen but I have no clue what time frame or who is going to take the heat for this.

Before Amazon there was walmart. Before Walmart there was Sears. Sears operated by mail and didn't charge sales tax in areas unless there was a store there. Back then you could not wait for stores to open and that's how Sears capitalized in rural areas.

Since: Jul 11

Location hidden

#17 Jul 21, 2012
nedm, buddy, try a hobby, crochet, bird watching, Civil War reenactment, internet porn, something...
Current Employee

Enid, OK

#18 Jul 22, 2012
Nedm we'd like to disagree with you but don't understand a word your saying.
Furby

Mooresville, NC

#19 Jul 23, 2012
Nedm,

If you read the entire article on wikipedia you would have noticed congress still has the right to change this which they began working on in 2011. Possibly by the end of this year the road will be clear for collecting sales tax on internet sales.

And then to simplify things I hope the tax is imposed based on the shipping address, otherwise the attorneys will get involved and really screw things up.
FormerSM

Fort Wayne, IN

#20 Jul 23, 2012
Furby wrote:
Nedm,
If you read the entire article on wikipedia you would have noticed congress still has the right to change this which they began working on in 2011. Possibly by the end of this year the road will be clear for collecting sales tax on internet sales.
And then to simplify things I hope the tax is imposed based on the shipping address, otherwise the attorneys will get involved and really screw things up.
People....this is such a boring non-sensical thread. Please kill it already.
Furby

Mooresville, NC

#21 Jul 23, 2012
nedm wrote:
I just cannot picture a bunch of people in a coffee house asking someone running for office to raise their taxes.
Actually, they wouldn't be raising their taxes, they would just be requiring them to pay what they should have been paying all along.

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