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Am I being thick and missing something? As far as I can tell CRC haven't lowered prices commensurate with the 15% v.a.t thing.
Do they nock it off at checkout?
no, it got swallowed up by the collapsing pound.
I would say that there prices are still cheap consdiderin the MASSIVE price rises early this year as rich says due to exchange rates
Hmm...many prices have been constant actually.So a couple of items I ordered pre crash and vat reduction [which subsequently went out of stock] came back at the same price.
I don't remember them ever reducing prices,pre crash to take into account the lower vat rating.
The issue isn't one of value per se...more of principle.
If they did change the prices for lower vat then fairy nuff.
suck it up, or they might get real with the ACTUAL cost of things because of our piss poor economy and charge you 30% more than before. (the increse in the raw cost of any import)
The whole VAT this was a huge joke, much like scrappage schemes and ministers expenses......
Not many shops passed on the change as it was F'all
Yeah but everywhere else that I spent my money [online and real life shoppes] reduced their prices.
No one seems to agree with me on these.Hey ho.
More an observation really.
Businesses aren't there to play 'fair' or play any other way
They pitch their prices at a point where they think they can get enough takers & still make a profit
If they get it wrong they either lose or people go elsewhere, there's no obligation for you to buy from them, there's a 101 other interweb sites out there just use them instead.
The work to recalculate and change many thousands of prices might have cost more to perform than the amount they'd be knocking off.
Every one else seemed to make a big point of passing the lower v.a.t rate saving on to the customer at the time.
Others did it at the checkout automatically.
Yep, but unless you've been tracking the other people's prices, you don't know that thye've not put their pretax prices up for other reasons. Look at the actual price you pay, not the "look we've knocked 2.5% off" sticker.
I agree with Podium here - it's a matter of principal. They should have passed it on.
I work with online sales systems and implementing something like a VAT change on a database driven system like this would be as easy as editing a single value in a database from 17.5 to 15. A one minute job at most.
No big deal though, I'll still shop there 🙂
shouldn't the hope stuff had 2.5% knocked off?
I work with online sales systems and implementing something like a VAT change on a database driven system like this would be as easy as editing a single value in a database from 17.5 to 15. A one minute job at most.
Ok, that's me told.
Agree they should have done it, but it won't stop me shopping there.
I disagree that they or any other business 'should' have passed it on. The whole point of the cut was NOT just to help consumers to spend by reducing prices but also to allow businesses to profit. It was a recession strategy and just as important as cheaper prices to a consumer is better margins for a business. Businesses had a choice.. They could pass it on to try and encourage more business through slightly cheaper prices or they could use the extra 2.5% to bolster their shrinking margins. Either way the economy gets a tiny bit of a boost, and that was the whole point of the cut in the first place (Political spin aside).
I had that same choice to make with our online shop. I chose to pass on the cut. i don't begrudge any business who decided to use it to better their margin. Both strategies will help keep the business going.
Might have coincided with their weekly price checks which concluded that they could no longer stave off the weak pound and so were going to universally increase all prices by 2.5%. Legally they have to apply the reduction, practically it makes no damn sense.
No they don't have to apply the reduction legally in such a way that the end price for the consumer is reduced. They legally have to apply 15% VAT to their products and services. The two are NOT the same.
I don't really have an issue with the extra 2.5%. I gave it some thought at the time and figured unless I was spending > £1000 it'd not be much to think about and if I was spending over that, do I really need to worry about £25? If an already cheap place makes another 2.5% I don't really care providing they're still cheap.
If it keeps them going, great, I'd rather that than an extra tenner in my pocket that I have to spend 10 times more next time I order from somewhere when CRC are out of business.
As you say,it's their business and if no legal obligation to pas the saving on to the customer it's up to them.
Just seems like it would have been the 'right' thing to do imo.
'Legally they have to apply the reduction, practically it makes no damn sense. '
Traders have no obligation to pass on any VAT savings to the consumer.
[i]Just seems like it would have been the 'right' thing to do imo.[/i]
Financially for them maybe it wasn't, ok so you may have saved a whopping 2.5% on the VAT but on their hugde sales that's a nice boost for them.
If they had passed it on you'd have only been 1.85% better off not 2.5%