Shops not passing on VAT cut

[Raymond Lin]

They dont have to reprice anything just give a 2.5% deduction from all advertised prices on the till total, should be pretty simple

Its close enough, 3% wouldnt kill them either

No it isn't.

If a product is £100 Pre VAT then its £117.50 post VAT.

If you take 2.5% off £117.5 then £114.56.

If you add 15% to the £100 then its £115.00

Therefore by subtracting the 2.5% off the total price would HURT businesses.

 

[Pneumonic]

No it isn't.

If a product is £100 Pre VAT then its £117.50 post VAT.

If you take 2.5% off £117.5 then £114.56.

If you add 15% to the £100 then its £115.00

Therefore by subtracting the 2.5% off the total price would HURT businesses.

simple maths is beyond most! dont fret

 

[Energize]

My parents own a small-ish convenience/grocery/whatever store (think along the lines of those named after those shiny things in the sky...) so they are having to change every item on the computer to include the reduced VAT code and also to print out all new shelf-edge labels for them.

That's one really bad computer setup!

 

[Adsta]

I bought a CD yday that was marked up at 12.99

I only got charged 10.00

I dunno if that has anything to do with this but i thought i would share my experience

 

[Naf]

That's one really bad computer setup!

I know, but it was paid for by the company (that cuts costs) and didn't cost us anything other than the actual hardware we bought

...It doesn't half show though and I could create the entire system better myself if I had access to the main systems it links to

LOTS of stuff like we can't add new barcodes to a product as the button for adding a new barcode actually adds an entirely new product - but we can't do that as it has the same Product ID Code so we have to jot down/print the item's details and delete it then start afresh - VERY bad programming!

But still, it works and it's only when I notice the problems that it becomes apparent how poor it is - my parents and the other staff are useless with computers so just get used to doign 50 things to get where they want to be - where as if it were up to me I'd redesign it so you had to just do 1 or 2 things!

 

[Rameses]

For what? So a £29.99 item can become £29.27? Whats the point, really? Are you actually going to be pleased to pop into a shop, hand over 30 quid for a 29.99 item and instead wait whilst the cashier counts out 73p of change for you? Great. I'd rather just have the penny. We are all going to end up carrying huge amounts more loose change.

Fist off that statement is just silly, money is money. We are not talking £29.99 here, we are talking about every purchases you make. With the build up to Christmas, buying presents etc that would amount to some 'change.'

I for one would never 'take 1p or 73p' and nor would 99.99% of the nation. You clearly have no sense of the value of money otherwise you'd not for one moment post a comment like that.

Companies should without question reduce their prices, regardless of how much a ball ache it may be.

They'd soon up the prices if the VAT went up instead of down. You can count (pun intended) on that.

OcUK and others did the drop straight away which is right, and people should be more aware of this, because at the end of the day its your general spending as well as lifestyle spending that'll benefit.

No one should ever turn their faces up at money. Take care of the pennies, and the pounds will take care of themselves!

 

[silversurfer]

No it isn't.

If a product is £100 Pre VAT then its £117.50 post VAT.

If you take 2.5% off £117.5 then £114.56.

If you add 15% to the £100 then its £115.00

Therefore by subtracting the 2.5% off the total price would HURT businesses.

It'd be slightly more then 2.5%, roughly equivalent but yes you are correct

If the idea is to stimulate business then simplicity usually helps, a maths lesson would be a turn off

 

[RDM]

Fist off that statement is just silly, money is money. We are not talking £29.99 here, we are talking about every purchases you make. With the build up to Christmas, buying presents etc that would amount to some 'change.'

Yeah if you spent £1,000 on Christmas Presents (assuming all are VAT rated of course) then you would save a massive £21 or so. That is going to make a huge difference to all the struggling people out there!

 

[silversurfer]

I think the idea is to help businesses tbh. If they are doing sales before xmas anyway then allowing them to price in a 2.5% reduction in their vat returns does have an effect

 

[Adsta]

This thread has been a great read, so much bickering going on its great !

Carry on

*eats popcorn and watches*

 

[v0n]

I remember last time the cigarettes went up in price (few months back) I had the unfortunate job of changing the prices myself as my parents were with my grandad due to my grandma passing away the night before, the amount of people making remarks of "ohh, you've put them prices up b***** quick haven't you?" was ridiculous - YES! We have, as we're losing out on money if we don't!
[/rant]

If you had to change prices on boxes yourself it means you were upping prices on the stock you already had/purchased before taxes went up. Are you, as a retailer pay duty at point of sale or is duty paid already when you buy your stock from warehouse?

 

[LiE]

If you are struggling and £21 will make a difference.. maybe you shouldn't be spending £1,000 in the first place?

 

[cyborg]

Just to confirm, this high street electronics store indeed didn't lower their price, but bumped up all their ex-vat prices so prices would be the same and they would make a 2.5% profit. There was a memo sent to all the stores, including what to say to press if they were to ask. The 'saving' is apparently going to appear on their promotional stock.

 

[N19h7m4r3]

Money is money, if for example you're spending 1000 on a new pc and watercooling then 21 can make a big difference.

It could mean having it all or waiting till your next paycheck to get barbs for the cooling loops

Every cent saved helps.

 

[[TW]Fox]

You are asking me to accept that someone who has no experience of living anywhere except with his parents (rent free as well) knows enough about living in the real world and the cost of living, to lecture to the rest of us about it? Do me a favour

No, I'm asking you to accept that I have knowledge but from a different perspective to you. Your knowledge is born through experience of hardship, mine is through academic study and common sense (I fail to see what suddenly a gas bill, some rent, council tax etc is going to teach me that I don't already know. Infact I dare say I'd probably paid garage bills bigger than most monthly utlility bills ).

Your viewpoint is no less valid than mine, it is simply from a different viewpoint. Just as mine ias no less valid than yours.

I pay income tax, VAT, I pay bills, I buy food, I save up for things, I purchase financial services, etc etc. The fact I consider a 2.13% reduction to be meaningless is becuase I can see it from an economic perspective not a 'Where is my next loaf of bread coming from' perspective. You don't need to be living on the bread line to be able to say that if a £21 reduction on a £1000 spend is a big deal to you, something is very wrong.

Different, not lesser.

You come across as very bitter and I don't really understand why. I am not better than you, I am just different to you. My experiences are different to yours, not inferior to yours or better than yours.

 

[LeJosh]

Let's whip the VAT off of gas bills now. I don't know the consequnces of this. Just jesting.

 

[dirtydog]

I think an opinion based on personal first hand experience is always more informed than one based on observation or academic study.

 

[[TW]Fox]

I think an opinion based on personal first hand experience is always more informed than one based on observation or academic study.

You have personal and firsthand experience of the effect to an economy of VAT cuts?

It's a bit of a revelation to me. I guess studying finance, economics etc is pointless as you can gain more knowledge in the way the economy works by moving out aged 16, getting a full time job on minimum wage and renting a flat. Oh well, we all make our mistakes

Just think, all those members of the general public who know all about VAT cuts etc etc simply becuase they pay rent. Infact wow, that must mean my sister knows more than me as well.

Crushing.

 

[LiE]

I think an opinion based on personal first hand experience is always more informed than one based on observation or academic study.

You would think that

 

[howthe]

Good. The whole thing is ridiculous and stores are stuck in a difficult situation.

They have two choices:

a) Reprice EVERYTHING. This means moving away from established price points, bringing in completely random new ones. Going through huge amounts more change at tillpoints, increasing the time it takes each customer to be served. Spending hundreds of thousands reprinting price stickers, POS, adverts all over the country.

For what? So a £29.99 item can become £29.27? Whats the point, really? Are you actually going to be pleased to pop into a shop, hand over 30 quid for a 29.99 item and instead wait whilst the cashier counts out 73p of change for you? Great. I'd rather just have the penny. We are all going to end up carrying huge amounts more loose change.

So, at a time when the economy isn't doing great companies already experiencing a downturn in sales must commit much money to this utterly ridiculous idea.

Or they can do b)

b) Keep prices the same. Not incur huge pricing costs and retain sensible pricing strategies. Get absolutely slated by the Daily Mail and driven out of business as a result.

Fanastic. And just 3 weeks before Christmas as well.

My brother in law works at Morrisons in Admin and has just spent the last week working 12 hour nights just so he can reprice every single item in the store :O

However, as a home owner Fox, that 73p does make a difference over time, as silly as that may sound. Over the next couple of years (I believe that was the projected time frame for keeping this VAT rate?) you are talking about a significant saving.