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Old 04-29-2012, 09:00 AM
 
Location: Houston/Brenham
5,819 posts, read 7,233,839 times
Reputation: 12317

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For all of you complaining, "Ugh, I'll never buy from Amazon again", do you even compare prices? I always shop around, and Amazon's price advantage is often much better than the tax difference.

Quick example: I bought a nice 55" LED TV last year (Samsung). Best price online (from a known name; I won't buy from "Jack's TV Superstore") was Amazon--$1800. A couple other online places were in the 1800-2000 range. Best Buy was $2350. Couldn't even find it anywhere else local. Amazon ships it free. Total cost: $1800. Best Buy: 2350+8%tax=$2550. At the time, that was a $750 savings!

Even with tax, Amazon would have been $1950. Still a $600 savings.

I like Amazon, their service is excellent, prices are great, and their web site is super easy to surf. I also have bought several Kindles over the years, and I love their e-book selection.

As much as I buy online, I am in favor of charging sales tax. Why should an online store have a tax advantage over a local store. I believe in a level playing field. I'm not going to argue taxes in general; that belongs in a different thread. If we are going to be taxed, make it apply to everyone.

Quote:
Originally Posted by jasonamd View Post
The law has been this way for a long time. If a company has a location in the state, they must collect sales tax. Amazon built a facility in Texas, so now they need to collect sales tax.
You are over-simplifying a very complex issue. Amazon's warehouse here was owned by a sister company, not Amazon directly. It's debatable whether they had a nexus here (that's the legal term for a business location). Amazon gave in because (1) they knew over time, it was a losing battle, why not get ahead of the game, and (2) they want ALL online stores to start paying taxes, since they feel they (Amazon) will still look better compared to the rest.

Quote:
Originally Posted by ChocolateBabz View Post
I'll continue doing what I always do - check the local price, compare with Amazon (remembering to include tax) and then buy wherever is the best deal. To be honest Amazon isn't the great deal they once were, so much is now sold via third party stores and the ebook prices are quite often the same as the paper copy (can anyone say price fixing?).
Thank you. A sensible post, instead of a knee-jerk reaction. Compare prices, do your homework, make a smart decision.

BTW, on the e-book pricing issue, it IS price fixing. The FTC has filed suit against the major publishers AND APPLE, that the change in e-book pricing a few years ago was collusion and price fixing. Yay!
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Old 04-29-2012, 01:04 PM
 
23,177 posts, read 12,219,693 times
Reputation: 29354
Quote:
Originally Posted by MIBS98 View Post
Scenario where Amazon must collect tax: local store is still $113.66. Amazon is now $113.24 (assuming shipping cost is not taxed). It is no longer so obvious that you would buy Amazon. Therefore, to maintain the edge, Amazon must either reduce sales price or reduce shipping cost.
That's good, so long as you can walk to the store. Else you forget the $4/gallon gasoline not to even mention the value of your time.
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Old 04-30-2012, 07:18 AM
 
88 posts, read 191,422 times
Reputation: 99
Quote:
Originally Posted by MIBS98 View Post
Doesn't apply in every situation. However, let's do a theoretical example where you are buying one item. Let's say local store sells a widget for $105 plus tax. Amazon sells widget for $100 and no tax plus $4.99 shipping cost.

Assuming a sales tax of 8.25%, the all in cost from the local store is $113.66. If buying from Amazon it is $104.99. No brainer, buy from Amazon.

Scenario where Amazon must collect tax: local store is still $113.66. Amazon is now $113.24 (assuming shipping cost is not taxed). It is no longer so obvious that you would buy Amazon. Therefore, to maintain the edge, Amazon must either reduce sales price or reduce shipping cost.

Obviously the example may change depending on what you buy, how many items you buy, what shipping cost is, etc.
Don't forget that if Amazon is selling it and you don't have Prime membership it is free shipping on anything over $25.00
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Old 04-30-2012, 08:01 AM
 
Location: Houston/Brenham
5,819 posts, read 7,233,839 times
Reputation: 12317
Quote:
Originally Posted by deckhanddavy View Post
Ugh! Guess I'll be shopping at bh photo for the pricier electronic stuff.
I randomly checked a few items, BH was higher 100% of the time.

Try this: PN59D8000 Samsung TV

Amazon: $2129 (even w/tax $2300)
BH Photo: $2499

Very few online places have the buying power of Amazon.

Plus, how long before all online retailers have to charge tax?
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