Australian store charges customers a $5 'just looking' fee


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A speciality food store in Brisbane, Australia is charging visitors a $5 AUD (roughly $5.25) in an effort to stop them from "showrooming." Celiac Supplies, which describes itself as "Brisbane's only glutenfree and wheatfree store," became internet famous yesterday when a Redditor posted an image of a sign announcing the policy. The Australian Associated Press tracked down the store owner, who said that she was forced to put up the sign after spending "hours each week" giving advice to people only to see them leave and buy a similar product elsewhere. "I'm not here to dispense a charity service for [large supermarkets] to make more money." Customers will apparently be refunded the $5 charge on making a purchase.

A fairly new term, showrooming describes shoppers that examine a product in-store before looking online to find the same item cheaper. Although no US stores (that we know of, at least) are levying a tax on perusers, some retailers have implemented new policies to try and keep their customers loyal. Best Buy introduced an internet-price-matching offer and free delivery on out-of-stock items for the holiday season, and last month decided that it would keep the offer in place, declaring the deal "the end of showrooming."

http://www.theverge.com/2013/3/26/4148564/australian-store-charges-customers-a-5-just-looking-fee-in-bid-stop

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Should stand up just fine in court. It's going to be down as an entrance fee if she genuinely charges it "to browse", but I'd suggest she would be better off charging it for her "consultation fee"...

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I honestly wonder how this will hold up in a courtroom.

Over here? Perfectly fine as she is selling a service.

Only issue she would have is that she must pay GST :p

I think she would be better off trying to win customers by better customer service. I'd be one of the ones who would straight up leave if I saw the sign.

She'd also struggle to enforce this. If she demanded the $5 from me, I'd grin and wonder out the door. It's a written agreement. She can only enforce it if she can demonstrate costs to the court (she'd have to sue to enforce it), and the court would toss it out as it's $5 and a waste of their time >.<

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First rule of business is to do what it takes to get customers into the store and looking at the product. If people are not buying from that store, then there is something THAT store is not doing correctly. Maybe lower prices, raise customer service, or do some promotions. Nickel and diming customers only goes so far.

If she thinks her store can do such a thing and still profit, she is of course able to try it.

But IMHO, this is a tactic that will only backfire on them.

The business I bought out was doing horrible. Storage can be pretty competitive. The property was making at most, 22K a month. They were spending a thousand or few a month on advertising as well. I don't spend anything on advertising, and through customer service and correct promoting, have boosted this property now up to 34K a month.

But those with little business insight will just try and nickel and dime their way through business. A good business though knows how to bring in revenue, without having to resort to tactics such as this.

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I agree, now that I read the post, fair enough, she is a business afterall, and like all businesses, needs to make money in order to stay in business, if 'customers' were actually buying from her store after recieving her advice, she wouldn't have needed to do so.

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All of the "warehouse club" stores in the United States (i.e. Costco, BJ's Wholesale, Sam's Club, etc) charge an annual membership fee, which ranges from $30-$40, higher for business memberships. Pretty much the same thing. No big deal.

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I honestly wonder how this will hold up in a courtroom.

Why would it not? It's their business, not a recreation area, and they can certainly charge an admission if they so desire...

I actually think that's a fairly sensible idea.

I agree. People have no issue with wasting a company's time... As a whole, I think people need to be more respectful of other people's time. I always try to be very considerate of this when dealing with companies myself and see nothing wrong with people paying for this time if they have no intention of doing business with the company...

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I agree. People have no issue with wasting a company's time... As a whole, I think people need to be more respectful of other people's time. I always try to be very considerate of this when dealing with companies myself and see nothing wrong with people paying for this time if they have no intention of doing business with the company...

Actually... No. The business should be doing what it takes to get the customers dollar. Company's waste people's time, all the time. The way stores are designed and layed out, over 80% of the time, are for reasons that keep you wandering the store, directing you to certain things. Hell, most stores have 20+ check out lanes, with only 3 actual cashiers. This gets people to wander about a little more as they wait for lines to die down, keeps them looking at product, and other things that are " to be perceived ".

Customers should have every right to inquire, browse, and research what ever it is they will spend their dollars on.

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Absolutely, but the company isn't obliged to supply you with this right.. You can obtain your rights elsewhere.

They can choose not to service you if they feel you're wasting their time, this is just a different mechanism for the same idea.

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Why would it not? It's their business, not a recreation area, and they can certainly charge an admission if they so desire...

Because I seriously doubt you can force someone to pay when you haven't seen anything you like in store. Imagine you go into a clothing store and don't happen to find something that suits you, then be forced to pay ?10 (or whatever).

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Actually... No. The business should be doing what it takes to get the customers dollar. Company's waste people's time, all the time. The way stores are designed and layed out, over 80% of the time, are for reasons that keep you wandering the store, directing you to certain things. Hell, most stores have 20+ check out lanes, with only 3 actual cashiers. This gets people to wander about a little more as they wait for lines to die down, keeps them looking at product, and other things that are " to be perceived ".

Customers should have every right to inquire, browse, and research what ever it is they will spend their dollars on.

Well, thanks for the tangent, though it really doesn't relate to what I was saying whatsoever...

Browsing a store != wasting a company's time... LMAO

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I think it's more to do with taking up the retail staff's time on advice then going elsewhere.

As I observed earlier, they can't enforce it >.>

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Because I seriously doubt you can force someone to pay when you haven't seen anything you like in store. Imagine you go into a clothing store and don't happen to find something that suits you, then be forced to pay ?10 (or whatever).

Admission? It really wouldn't be that tricky... I'm not saying it's a good practice or not, but I don't blame this small business in the slightest for doing so... People have no consideration for other people's time at all anymore.

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Admission? It really wouldn't be that tricky... I'm not saying it's a good practice or not, but I don't blame this small business in the slightest for doing so... People have no consideration for other people's time at all anymore.

I'm fairly certain that putting an admission sign on your front door up will do you more harm than good. :laugh:

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Admission? It really wouldn't be that tricky... I'm not saying it's a good practice or not, but I don't blame this small business in the slightest for doing so... People have no consideration for other people's time at all anymore.

It's her business; She should spend time to educate people on it. If she doesn't want to do that, she can make it harder for people to ever go in or get anything. It is her choice, but from a business perspective, it is the wrong choice to make.

If I got ****ed every time someone came into my business asking questions about all the size storage units, temps, safety, and so on and on, and then left looking for something else, I'd rightfully go out of business in a short time. People will have questions. It is the business that needs to answer them. If you feel it is a waste of time to secure a sale, then maybe you are in the wrong business.

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Charging is really is not the way to go IMO. People will just stop coming in to the store, research products online, and probably eventually end up buying the product elsewhere. You want to get people in the door, not keep them out of it.

Just not a good time to charge people more with the economy in lots of countries not doing so well.

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