Quill is dead. Will it affect your purchasing decisions?

[archerscreek]

I always consider sales tax regarding total purchase price. There is a resort community nearby that assesses a higher tax on all purchases within its jurisdiction, and I think about it when I shop for anything,even toilet paper from Walmart or screws from Home Depot. I avoid buying from that jurisdiction as much as possible to avoid the higher percentage, 6.75% vs 5.5%. So if I shape my buying habits based on paying $1.00 more for groceries, I definitely will when it comes to paying $155 on a $3000 guitar.

[Gitfiddlemann]

I see sales tax as a non-issue or a minor one because, as others have stated, many retailers charge it now anyway, and when they don't, the law requires you to report it on your taxes. You can't avoid it if you play by the rules, or happen to live in a non tax state.

The shoe is seemingly shifting over to the other foot. The online retailers will now have to look at free shipping more closely (which is a big draw) in order to better compete with local shops.

In the end, I see it more as a win for the consumer, because competition will (should) heat up.

[Nyghthawk]

I bought two of the three guitars I own online. I did so because I live in the boonies about 100 miles due north of Houston. Not much local choice. This change will hurt but I will still buy online for the next 15 months or so. Then I retire and move to the Austin area. I will reassess then.

[Pitar]

I don't transact online. I prefer to share my money here, at home, in my community.

[justonwo]

Originally Posted by Imbler

I'm actually for it. At least here in Kansas we are legally obligated to pay the tax already (honor system). So I have to calculate it and pay it on my yearly income tax form. I always have the feeling I'm the only guy in the state voluntarily paying it, besides it being a record keeping chore.

Yeah, me too. And with guitar purchases, the amount can be really large. But it's how are states' revenue systems are structured so we're only cheating ourselves in the end.

[Dirk Hofman]

Certainly isn't going to affect my guitar buying. I buy guitars I've played and loved, for the most part. Maybe the occasional private sale if it's a great deal, but that's also exempt.

It will affect my bike spending. With that advantage gone for online sellers, it's going to make me more likely to buy local.

[Gmountain]

Not having to pay sales tax is nice, but it's probably not enough in and of itself to make me do something differently. If the local store can get within $30 or $40 of mail order, I would go local. Assuming they have what I want. Having stuff delivered is pretty nice.

[personatech]

It won't affect me at all. North Carolina has long had an estimated "online use tax" (essentially, Do you purchase items online? Either itemize your use tax due or calculate an estimated tax...)

Once North Carolina begins collecting tax straight from online retailers, this tax line on the income tax form should be dropped.

[Jim Owen]

Hi John,
I think a lot of important functions are served through state sales taxes. I’m glad to pay them.

[MikeBmusic]

Sales tax pays for schools, road repairs, etc. My concern is that the online retailers actually get the collected money to the state.
I remember questioning getting charged Massachusetts sales tax (from a catalog house maybe) 25 years ago - and they were charging it on everything including clothing (which is not taxed in Mass), I asked for their Mass retail sales tax #. they removed the tax charges from the total.

I can see where small retailers will have real headaches with this, and some software company will get rich supplying a good program that does the correct (and updated) calculations.

[Bob Womack]

Here's the deal with me: I typically buy guitars with my ears and hands. However, there a hitch. Only one local local store currently has one (1) of the guitars I'm looking at. One, count 'em. In this rare case, part of the attraction to this guitar is the looks. The local one isn't particularly attractive. It puts a severe strain on the old saw, "A bird in the hand is worth two in the bush."

Add to that the fact that a large percent of the electric gear I use is reasonably esoteric and can't be bought locally at all. Much of it is only offered at small, niche dealers like yourself. Whatcha gonna do?

They tell me some online dealers are going to respond by lowering their prices to cover the addition of state sales taxes. What are your plans?

Bob

[Basalt Beach]

Originally Posted by Shoreline Music

What say you? Will an effective national internet tax drive you back to your local guitar store? Or are there other aspects of a transaction you value? Just trying to take a pulse.

Jon,

IMO, overtime, most folks will become accustomed to paying the sales tax. For some folks, paying no sales tax may has been the added benefit of "the deal" which they received when buying the guitar long distance.

I suspect for the luthier builds which you carry, it should make no difference and customers will continue to seek you out. As for the national brands, such as Martins, Taylor, Gibsons, etc., I suspect perhaps some buyers will now work harder on trying to make the local deal. That said, some local shops may realize they are now competing on a more level playing field and no longer offer the same low level of price they had to in the past due the sales tax difference.

All that said, there is a rising generation of shoppers, in general, who are accustomed to the ability to purchase exactly what they are shopping for from any location in the country. If local does not have it, they can immediately purchase it online and receive it in 24 to 72 hours. I believe that mindset will continue to grow.

Lastly, there are some folks who value service, including industry knowledge, wood knowledge, specific guitar knowledge, and etc... and thus in essence, the shop consults with their customer along with standing behind what the sell. They offer unparalleled service and an excellent return policy. There is also a wide spectrum of appreciation of this from buyers/customers, ranging from very important to some to not important at all. For those which it is very important, I suspect the the long distant shop will retain the loyalty aka relationship of the customer.

Just some thoughts on your questions.

[M19]

John,

When I bought the McIlroy from you, tax had no part of the decision. Availability #1, guitar reputation #2, and trust in Shoreline #3. Oh, and the price was already awesome, tax notwithstanding.

[Basalt Beach]

Originally Posted by M19

John,

When I bought the McIlroy from you, tax had no part of the decision. Availability #1, guitar reputation #2, and trust in Shoreline #3. Oh, and the price was already awesome, tax notwithstanding.

Same for me, when I ordered and purchased my Northwood.

[Mbroady]

For years I purchased guitars from my local mom and pop or box store. With the advent of online shopping I started purchasing everthing, and I mean everything (except food) on line. But guitars were still mostly local for many years. Today I have guitars shipped to me but the return policy is more of a factor then is the savings due to no taxes.