🇦🇺Australia

Unbilled Design Consultations

2 verified sources

Definition

Many Australian furniture retailers offer complimentary or low-fee design consultations that require staff time but are only free with minimum purchases, leading to revenue leakage when clients do not convert.

Key Findings

  • Financial Impact: AUD 250 flat fee per consultation if no purchase over AUD 25,000[6]; AUD 29 consultation price at risk if no sale[7]
  • Frequency: Per consultation booking
  • Root Cause: Manual process without automated conversion tracking

Why This Matters

The Pitch: Retail furniture players in Australia waste AUD 250+ per unsold consultation on free design services. Automation of upsell tracking eliminates this risk.

Affected Stakeholders

Design Consultants, Store Managers

Deep Analysis (Premium)

Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Lost Sales from Consultation Friction

2-5% revenue churn from lost deals due to slow manual processes (industry standard for consultation drop-off)

Staff Overtime in Peak Design Seasons

AUD 50-100 per hour overtime for design consultants (Australian award rates)

GST Non-Compliance on Mixed Design Supplies

AUD 5,500 minimum penalty per BAS lodgement failure (ATO administrative penalty)

Bußgelder wegen Verstoß gegen australisches Verbraucherkreditrecht (NCCP/ASIC)

Logic‑based estimate: expected compliance risk cost of ~AUD 80,000–190,000 per year per mid‑size retailer, based on a likely ASIC‑style enforcement event of AUD 400,000–950,000 (penalty, remediation, and professional fees) every 5 years linked to non‑compliant consumer finance application processes.

Cost of Poor Quality

Quantified: AUD 5,000-20,000 per rework incident (industry standard 2-5% of order value for custom pieces averaging AUD 10,000)

Cost Overrun

Quantified: AUD 1,000-3,000 per custom order (5-10% overrun on materials/labor for complex specs)

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