VAT decrease - a number of retailers pocketing the difference

puddleduck

puddleduck

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Andy Drake
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I've been sniffing around a Nikkor 14-24 again.

http://www.srsmicrosystems.co.uk/266/Nikon-14-24mm-F2-8G-ED-AF-S-Nikkor-Lens.html

This was £999.99 last week,so they've just pocketed the £25 difference.

I've noticed other retailers have kept the same price on items as well, but this stands out as I've been mulling the lenses again (it was one of my p/x "wants" for my D700)

EDITED for fairness: As from today, they are deducting the price difference.
 
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I think a great many will be doing that

I'm certainly not altering my prices by 2.5%, it would take hours to find all the references and prices, then for some (i.e. 7x5" prints) the difference is only 17p anyway

Minor bonus for price-lists just gone out is my view

I think it was :nuts: to think such a piddling change would 'kick-start' the economy; or for many smaller retailers to even bother to pass it on

DD
 
Yeah, it certainly wouldn't encourage me to spend more.

However I thought I'd wait on this til December 1st, as £25 on a £1k item is better in my pocket than theres.
 
:agree:

It will cost a lot of retailers a tidy sum re-pricing stock and re-printing price lists (especially people like Argos etc who rely on large catalogues).

No excuse for web based businesses though!
 
The other day when the VAT reduction was mentioned on tv they gave some examples of the lower prices. For example a £399 tv down by around £8. I'm sorry Mr Darling that is not going to encourage me to go out and buy a tv. With the current state of the economy I'm more likely to keep the money in the bank not spend it!
 
davekiddle said:
:agree:

It will cost a lot of retailers a tidy sum re-pricing stock and re-printing price lists (especially people like Argos etc who rely on large catalogues).

No excuse for web based businesses though!
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And of course transport fuel prices for business have gone up today, and they reclaim the vat but cant reclaim the increase in fuel duty.
 
davekiddle said:
It will cost a lot of retailers a tidy sum re-pricing stock and re-printing price lists (especially people like Argos etc who rely on large catalogues).
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They could easily program their checkouts to apply a 2.128% discount, if they wished .... no excuses.
 
I work for bank (for my sins) and it is more about cashflow than cash saving. If you have a turnover of £4m a year, with £1m in each of your four VAT quarters, then you would have paid VAT of £175k every quarter. OK you net it off against receipts, but now the VAT bill is only £150k. Thats £25k not to have to find in your cashflow, £25k more space in your overdraft, £25k more to pay your staff wages.

It isn't a massive cost saving, but it reduces the amount of cash flowing around the system, so it will help businesses.

Having sais that, I don't think it will help that much........
 
lawrie29 said:
I work for bank (for my sins) and it is more about cashflow than cash saving. If you have a turnover of £4m a year, with £1m in each of your four VAT quarters, then you would have paid VAT of £175k every quarter. OK you net it off against receipts, but now the VAT bill is only £150k. Thats £25k not to have to find in your cashflow, £25k more space in your overdraft, £25k more to pay your staff wages.

It isn't a massive cost saving, but it reduces the amount of cash flowing around the system, so it will help businesses.

Having sais that, I don't think it will help that much........
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Hmm not shure about that, your 1M turnover should decrease by the 2.5% diff in vat unless you don't pass it on. This means you actually have less of the governments money to play with until it is due for payment at the end of the quarter.
 
I didn't say I was any good at working for a bank.........;)
 
I think a lot of retailers will simply leave their prices "as is" - but you can bet that when the gov. puts VAT back up to 17.5% (2010 is it?) all the retailers will whack the extra 2.5% back on!!!
 
OutLore said:
I think a lot of retailers will simply leave their prices "as is" - but you can bet that when the gov. puts VAT back up to 17.5% (2010 is it?) all the retailers will whack the extra 2.5% back on!!!
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And will probably 'round it up' a bit too! This is the most ill conceived, badly thought out, useless plan they've come up with yet. Why did we ever vote for Gordon Brown.... Oh.... hang on a minute.... :thinking:
 
All the companies I deal with arent passing it on. Their prices were set inclusive of VAT, they arent going to change the price of something from £29.99 to £29.35. Also, quite a few of them are running 15-20% discounts to try and get stuff moving and reckon if that isnt working then another 2.5% isnt going to do anything.
 
not read through but i went crimbo shopping today although alot of the prices were still the old price. at the counter they were the new price very happpy not saved alot but at least i wernt ripped of
 
I think the Government should simply levy punitive taxation against companies not passing it on. That would probably focus minds a bit :)
 
puddleduck said:
I think the Government should simply levy punitive taxation against companies not passing it on. That would probably focus minds a bit :)
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Think of the cost of the pound shops having to change their name to 98p shops
 
I have my own light haulage business, diesel hasn't been reduced in price at the pump but the VAT I can claim back has so unless i'm being thick my fuel cost has just increased by 2.5%:thinking:
 
Foggy said:
All the companies I deal with arent passing it on. Their prices were set inclusive of VAT, they arent going to change the price of something from £29.99 to £29.35. Also, quite a few of them are running 15-20% discounts to try and get stuff moving and reckon if that isnt working then another 2.5% isnt going to do anything.
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I remember the VAT increase from 15 to 17.5%, must have been 10 years or so ago, I still have CD's from HMV from that era, with real odd prices on, when the VAT when up.
 
I've noticed that a few of the web-only retailers I shop with haven't dropped their prices :(

It might only be a few pounds/pence but it has left me feeling cheated, all I know is that if I can get it the same price elsewhere then I'll shop elsewhere.



The "Cheats" have given themselves some really bad PR
 
wack61 said:
I have my own light haulage business, diesel hasn't been reduced in price at the pump but the VAT I can claim back has so unless i'm being thick my fuel cost has just increased by 2.5%:thinking:
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Basically, yes it has....
 
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puddleduck said:
I've been sniffing around a Nikkor 14-24 again.

http://www.srsmicrosystems.co.uk/266/Nikon-14-24mm-F2-8G-ED-AF-S-Nikkor-Lens.html

This was £999.99 last week,so they've just pocketed the £25 difference.

I've noticed other retailers have kept the same price on items as well, but this stands out as I've been mulling the lenses again (it was one of my p/x "wants" for my D700)
Click to expand...


Doesn't surprise me, they were switching the new Nikon batteries in the refurb Nikons they were selling for elcheapo HK ones.

I wouldn't buy another thing from them.
 
puddleduck said:
I remember the VAT increase from 15 to 17.5%, must have been 10 years or so ago, I still have CD's from HMV from that era, with real odd prices on, when the VAT when up.
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The biggest ever con was in 1971 when decimal currency came in, things that cost 6d (240d to the £1)suddenly cost 6p (100p to the £1)

The same would have happened if we'd joined the Euro
 
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Yeah, I remember a lot of complaints about euro price gourging.

Its "funny" how businesses find it too much effort to decrease prices, but find a bit more motivation when taxes increase...

Having said that, and to be fair to SRS, they are now deducting 2.5% VAT.
 
Of course some retailers will have stock they bought with a 17.5% VAT rate and would need to sell that stock with a 17.5% VAT rate to maintain equilibrium.

I also find it amusing to see the grumbles about a 2.5% decrease in VAT being of virtually no consequence and yet the idea that VAT rising to 18.5% as being the end of life as we know it...

Anthony.
 
Of course some retailers will have stock they bought with a 17.5% VAT rate and would need to sell that stock with a 17.5% VAT rate to maintain equilibrium.

No, it doesn't work like that. Think about it...
 
Amazon appear to have done this. :shrug:

I ordered a Sigma lens with the code LOWERVAT to get the 2.5% discount which was honoured. Today, with the VAT already reduced in their prices the lens is the same price as it was before I ordered it (without the code). :cautious:

The same is true of the D90 kit too. :thumbsdown:
 
I just got some stuff on line and the reduction in vat was added at the end as a discount, seems the easiest way to do it :)
 
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