Close
 

Profit versus problems: Do regulated products pay their way?

  • News
  • September 21, 2017
  • Courtney Devereux
Profit versus problems: Do regulated products pay their way?

As part of a feature-length exploration of the regulations governing the sale of restricted products like cigarettes and guns, Courtney Devereux ran the numbers on whether these products pay for the costs associated with them.

Regulated items, although sometimes controversial, feed into New Zealand’s economy through consumer purchases. But do the financial benefits stack up against the costs incurred through injuries and death?

Alcohol: A 2013 study undertaken by the Auckland City Council reports that New Zealanders spend $85 million a week on alcohol, or $4-5 billion a year. Although this spending represents a significant input into the economy, there have been a number of studies that estimate the cost of alcohol harm in New Zealand. Previous estimates have ranged from $735 million to $16.1 billion.

Smoking: A pack-a-day smoker puts in around $9,200 into the economy each year, according to Smokefree New Zealand. For the average life expectancy of a pack-a-day smoker (61.4 years for a man - 10 years under the national average), that equals out to just under $500,000 put into the economy in each smoker’s lifetime.

The estimated health costs of second hand smoke and air pollution per year fall just under $80 per year per microgram/m3, inclusive of medical bills. If you apply that formula to the 605,000 Kiwis that smoke, the costs of their potential health issues and the pollution they cause equals out to $48.4 million. So although the economic gain outweighs the costs in the sense of sale versus consequences, it does not factor in those affected by second-hand smoke.

Firearms: New Zealand’s gun culture is small, but compared to the size of our population, the economic gains are still significant.

The average gun in New Zealand will set you back around $1,500. Prices can range between $300-$95,000. Going from the average price and the reported number of guns in New Zealand of 1.3 million, the sales and supply of guns so far has put just under $20 billion into our economy since records began in 1996.

This doesn’t include gun accessories, and the cost to obtain and renew a gun licence. A gun licence is $126.50. With 250,000 licensed gun owners, that means around $31.6 million made through licencing since the current system of record-keeping was initiated in 2010.

The New Zealand Treasury’s Guide to social costs benefit analysis, states that the value of a statistical life is estimated at $3.85 million as at June 2013. This is calculated by indexing average lifespan to the average hourly earnings.

This story originally appeared in NZ Retail magazine issue 751 August / September 2017

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 

Direct sales: How multi-level marketing works

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: How multi-level marketing works

The $200 million-plus direct sales economy contains many lessons retailers can use. As part of a wider look at this thriving corner of retail, we created a quick explainer showing how this business model typically works.

Read more
 
 

Direct sales: Meet the upliners

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the upliners

We profiled different participants in the direct sales industry to find out what retailers can learn from them. Meet Isagenix distributors Adam Nesbitt and Bianca Bathurst.

Read more
 
 

Direct sales: Meet the business builder

  • News
  • April 18, 2019
  • Sarah Dunn
Direct sales: Meet the business builder

As part of a wider story looking at what retailers can learn from the direct sales industry, we profiled Isagenix distributor Ben Frost.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 
News

Leveling up: Exploring multi-level marketing in New Zealand

Is the $200 million-plus direct sales economy retail by another name or something different? Regardless, what can we learn from it?

 
 

A spectrum of retailers

  • Opinion
  • April 18, 2019
  • David Farrell
A spectrum of retailers

In recognition of April being Autism Awareness Month, retail commentator Dave Farrell considers the role of those on the spectrum in retail.

Read more
 

How on-trend is your retail business?

  • Sponsored Content
  • April 18, 2019
  • Sponsored content
How on-trend is your retail business?

New insights from Visa highlight five evolving trends emerging from savvy retailers around the world. We’ve taken these global trends and looked at how they are playing out with merchants in New Zealand, and we’d now like to hear what you think of them.

Read more
 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}