[Stuart Wright]

With (most) everything going back up in price on January 1st by 2.5%, will you be buying something specifically before then in order to make a saving?

[darkcloud2011]

Be stocking up on Christmas presents for the kids for next year and getting some blu rays before they all go up.

One thing to remember for people voting it wont effect them most people phone and internet and tv bills will go up as most company's pasted the vat saving on.

[Tight Git]

Originally Posted by danielofhpool

Be stocking up on Christmas presents for the kids for next year and getting some blu rays before they all go up.

But surely the price of Blu-rays will gradually go down (as did DVD's), even with the slight VAT increase.

[darkcloud2011]

True but I can still by age appropriate toys in prep for next year.

[michaelb007]

Its only a 2.17% increase (I'll close the door on the way out)

I don't believe it will matter too much, at the start many stores had prices such as £97.82 to reflect the reduction, which magically went back up to £99.99 a month later.....

However I will miss going the feeling of surprise when a shop such as TkMaxx takes the difference off your final bill, leaving you to pay less than anticipated.

[darkcloud2011]

Soon mounts up though I have noticed it this year.

[Michael]

The most annoying thing about the VAT cut was this:


G.Brown: "2.5% off everything!"
Shops: "2.5% OFF EVERYTHING!!1!"
Consumers : "Ooh, i just saved 2.5% on something I'd have bought anyway "


2 weeks later...
Shops: "STILL 2.5% OFF EVERYTHING!!1!"
Consumers: "But everything is back to it's origional price? Meh, idc, buisiness as usual..."

__________________________

6 months later...
G.brown: "Ok, VAT back to normal"
Consumers: "What, everything is 2.5% more?! Time to cut back a little..."
Shops: "Sorry, VAT..."

6 months, 2 Weeks later...
Consumer: "Not back to origional price this time "
Shops: "Government legislation mate, nothing we can do" ($$)

__________________________

12 months later...
G.Brown: Right, we gotta pay back that tax, VAT up to 20%
Consumer: *Puts off large purchases, completley negating any relief effects*
Shops: *Die*


Does no-one else see it like this?

Maybe I should make it into a cartoon...

[Kieron]

Originally Posted by michaelb007

Its only a 2.17% increase (I'll close the door on the way out)

I don't believe it will matter too much, at the start many stores had prices such as £97.82 to reflect the reduction, which magically went back up to £99.99 a month later.....

However I will miss going the feeling of surprise when a shop such as TkMaxx takes the difference off your final bill, leaving you to pay less than anticipated.

Exactly. It all evens out after a month or two.

[quidditys_shore]

Originally Posted by Michael_L

The most annoying thing about the VAT cut was this:


G.Brown: "2.5% off everything!"
Shops: "2.5% OFF EVERYTHING!!1!"
Consumers : "Ooh, i just saved 2.5% on something I'd have bought anyway "


2 weeks later...
Shops: "STILL 2.5% OFF EVERYTHING!!1!"
Consumers: "But everything is back to it's origional price? Meh, idc, buisiness as usual..."

__________________________

6 months later...
G.brown: "Ok, VAT back to normal"
Consumers: "What, everything is 2.5% more?! Time to cut back a little..."
Shops: "Sorry, VAT..."

6 months, 2 Weeks later...
Consumer: "Not back to origional price this time "
Shops: "Government legislation mate, nothing we can do" ($$)

__________________________

12 months later...
G.Brown: Right, we gotta pay back that tax, VAT up to 20%
Consumer: *Puts off large purchases, completley negating any relief effects*
Shops: *Die*


Does no-one else see it like this?

Maybe I should make it into a cartoon...

spot on!

the VAT reduction was a complete joke! it was something that you dont really notice. i work in morrisons & we had to spend HOURS writting out stickers for items that came in pre-priced all because they had gone down by 1-2P!! then what happened? gradually over the weeks & months these prices went back up! & now they are going to go up even more!

[nheather]

I'm waiting to see what GAME do.

When VAT was dropped from 17.5% to 15% they didn't pass on the VAT savings. They published a statement saying that they felt it would confuse their customers because it would result in odd prices rather than the format that everyone is comfortable with.

So £39.99 (which everyone is comfortable with) would have become £39.14 (which would confuse it's customers).

So in January what are they going to do with £39.99 - will they increase it to £40.86? Using their own reasoning, they will leave it at £39.99 and take a VAT hit.

Bet they won't though!

Cheers,

Nigel

[Jamezinho]

Since the VAT decrease I have seen very few retailers that actually passed the savings on to the customer, and those that did put the prices back up shortly after. Despite the initial upheaval the retailers have benefited from the VAT drop in the long run, not the consumer. If this has helped them through the recession in some way then fair enough. But the retailers need to play fair and prices should stay the same. As the above post, I don't fancy the chances of this happening as VAT returning to 17.5% is a tidy excuse to hike prices up. Prices that never went down.

[Sonic67]

It's all a swiz. The local Poundland never changes its prices.