I'm sorry I must be reading a different thread, there are loads of posts complaining that companys are not passing on the savings. Yes fuel is expensive because of the duty, however the prices spiked due to the cost of oil not an increase in duty, and yet as oil has fallen to less than $50 a barrel the cost at the pump hasnt. Duty has also dropped and yet the price of fuel remains high.
Shops not passing on VAT cut
- Thread starter ArchAnGeL
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I'm sorry I must be reading a different thread, there are loads of posts complaining that companys are not passing on the savings. Yes fuel is expensive because of the duty, however the prices spiked due to the cost of oil not an increase in duty, and yet as oil has fallen to less than $50 a barrel the cost at the pump hasnt. Duty has also dropped and yet the price of fuel remains high.
Soldato
We've spent the day repricing about 100 new Mercs. 
Soldato
Everystore had to replace tickets for something like 400+ lines yesterday. They would have sent cards and strips for each item which half of them would have gone in the bin.
Was in town today and noticed a lot of shops did the cheap option and just put signs up saying how it was reduced on some items.
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Associate
[TW]Fox;13005751 said:
Almost all of the customers i've spoken to today couldn't give a **** about the reduction, as far as they are concerned, the price they see is the price they pay.
Paying 98 pence for something that usually costs £1, oh my!!
[QUOTE='[TW]
Thats purely a short term measure.[/QUOTE]
Just like the VAT decrease
Soldato
I haven't read all the posts in here so sorry if I'm just repeating whats others have said. I don't want to moan about a decrease in the cost of some things (give an inch, take a mile?)
Me personally, Most of my wages goes on non VAT items such as rent, food, council tax, electric (already 5%?), paying my debts (not that I would ever expect anyone to pay these other than myself) The odd thing I treat myself to that has VAT applied is really going to end up being about a £1-2 a month reduction. The only members of the public that would gain from this are people who have the privilege of having £100's a month to spend on what they want. People who don't need financial help.
I'm not skint and not moaning but I would have been better off paying £10-20less a month in income tax. This would have increased my spending power by a good % and at the same time, increased the spending power of a richer person by a lower %.
Me personally, Most of my wages goes on non VAT items such as rent, food, council tax, electric (already 5%?), paying my debts (not that I would ever expect anyone to pay these other than myself) The odd thing I treat myself to that has VAT applied is really going to end up being about a £1-2 a month reduction. The only members of the public that would gain from this are people who have the privilege of having £100's a month to spend on what they want. People who don't need financial help.
I'm not skint and not moaning but I would have been better off paying £10-20less a month in income tax. This would have increased my spending power by a good % and at the same time, increased the spending power of a richer person by a lower %.
Prices are not going up because of the weak £ though.
You could pick up 4850's for $120 in USA last week, and a 16GB USB Drive (OCZ one as well) for $10
Show me those kind of prices in UK, even at our new weak conversions rates.
Prices are going up out of shear corporate greed, the same greed that makes them pocket the extra 2.1%
Look at fuel companies, the second price of oil goes up they raise pump prices, however when the price falls they say "we'll pass on the drop later, as we buy stock 6 months in advance" - the 6 months didn't seem to stop them raising prices.
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Soldato
Okay to me this one is simple; with the current ‘climate’ issues as the media like to refer to it as spending has dropped.
Mess with VAT by dropping it a tiny amount may get some people spending again as they think they are getting a bargain. Saving an additional 2.5% on their spends; but will this really make you change your shopping habits? I think not and it will have no impact on the current decline.
But what it will do is force every single retailer to re-price their products, this means menus, labels, tills, posters, websites, adverts, price tags all need changing. Someone then has to do this mammoth task and when they are paid for it a percentage of that pay will go towards to government...Not a bad way to generate extra income!
Mess with VAT by dropping it a tiny amount may get some people spending again as they think they are getting a bargain. Saving an additional 2.5% on their spends; but will this really make you change your shopping habits? I think not and it will have no impact on the current decline.
But what it will do is force every single retailer to re-price their products, this means menus, labels, tills, posters, websites, adverts, price tags all need changing. Someone then has to do this mammoth task and when they are paid for it a percentage of that pay will go towards to government...Not a bad way to generate extra income!
Which for a major retailer is a matter of updating one database somewhere back office to actually make all the changes happen, and then having employees at each store change the prices (you could even not bother until new stock comes in and simply put signs saying "VAT DISCOUNT AT COUNTER")
Soldato
everyone likes arguing with him, but he Knows his stuff. But because he lives with his parents his knowledge is invalid.... cough.
I'm totally agree with Fox, it will be saving me almost NOTHING at all over the 13months its reduced to 15%, however its costing the government BILLIONS. We will all be paying it back for YEARS to come, all for £210 off £10000 of goods over the next 13months... i mean WOW. What a Great idea. I mean if your worried about £210 saving off a 10k car (for example) then you wouldn't be buying a 10k car would you?
To be honest, id rather keep paying 17.5% now, and NOT have to repay Labour Govenments Loans for the rest of my life.
+1
It is a joke anyhow, as mentioned previously, dropping income tax would have been a much better stimulus for the economy. I for one am reining in discretionary spending for the moment, and ploughing as much into savings etc as possible.
If I was taxed slightly less, I'd probably feel better off and be happier to spend the extra on non-essentials.
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Seems like companies are dealing with this according to a) whether they can absorb it and b) whether they want some free publicity.
OCUK can easily afford to drop prices 2.5% with the profit margins they have
I was in Boots yesterday and they had labels on shelves letting customers know that prices would automatically be reduced at the checkout, with a guide giving some examples of what this would mean for typical prices (e.g. £1.99, £2.99, etc). Bit clunky but it worked.
I've dealt with a few customers in my line of work today and most of them wanted their VAT rate changed but VAT-less price adjusted so that the new VAT-inclusive price was the same as it was before the rate change, so what the OP is talking about isn't really that unusual.
OCUK can easily afford to drop prices 2.5% with the profit margins they have
I was in Boots yesterday and they had labels on shelves letting customers know that prices would automatically be reduced at the checkout, with a guide giving some examples of what this would mean for typical prices (e.g. £1.99, £2.99, etc). Bit clunky but it worked.I've dealt with a few customers in my line of work today and most of them wanted their VAT rate changed but VAT-less price adjusted so that the new VAT-inclusive price was the same as it was before the rate change, so what the OP is talking about isn't really that unusual.
I bet if VAT went up 2.5% most of those saying this cut makes no difference would soon change their tune.
A cut in tax is a cut in tax. It's better in your pocket than the Government's.
A cut in tax is a cut in tax. It's better in your pocket than the Government's.
I guess a cut in petrol duty would be something consumers would be more likely to appreciate & much easier to implement nationwide, a cut in VAT is just a headache for most bricks & mortar businesses to deal with. I guess it depends whether this VAT cut is meant to stimulate businesses or consumers.
Man of Honour
Exactly!!!!
So many people in here do not see the bigger picture, they just see it huh, stupid govt, what's an extra £1 going to make to me. Look at the bigger picture people.
And too true, they are the same people who moan when the price of a loaf of bread goes up by 10p!
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Its high street retailers that are feeling the pain from lack of sales, what they need to realise is that a majority of people are not stupid and know they can find the things they are after cheaper online. I rarely buy anything on the high street anymore because i know it is a lot cheaper online.
But what do you expect them to do?
They can't match online prices as they have to pay for the running costs of the actual store.
You either pay more for being able to walk in and buy something, or the high street will just become an endless row of hairdressers and charity shops.
I'm not having a go as I do the same but to expect high street stores to match online prices is just ridiculous.
Soldato
If you look at some of the big companies with say lots of contractors their weekly cash flow will improve quite significantly from the reduced VAT payout on labour/resource costs. Obv this is accounted for in their return, but that only happens quarterly.
Permabanned
The thing is it may be in our pocket now, but think of that money attached to a piece of string and covered in glue to take more money out of your pocket in the future. It's a loan pure and simple.
I can quite understand why retailers such as yourself would defend the drop though, you don't have a shop floor as such to worry about and it makes for some great publicity with very little outlay. You only had to look at the replies in the "VAT drop coming early" thread to see how easily people are suckered in for such a small reduction. On a normal day a 73p drop in RAM previously costing £29.99 people wouldn't even have batted an eyelid.