Comments on: VAT down (UK) : prices down on play.com, well not really… http://www.tomdoyletalk.com/2008/12/03/vat-down-uk-prices-down-on-playcom-well-not-really/ TALK Tue, 16 Mar 2010 22:14:16 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Dan http://www.tomdoyletalk.com/2008/12/03/vat-down-uk-prices-down-on-playcom-well-not-really/comment-page-1/#comment-3288 Dan Wed, 03 Dec 2008 10:57:23 +0000 http://www.tomdoyletalk.com/?p=764#comment-3288 Very true - they are in it for the money. And Its up to each retailer to decide how competitive they are and whether their sales are enough to keep them going. That means that if they think they can survive without passing on the savings then they will. In the end I think its the mainstreet shops that will need to pass this on more than anyone else and its there that the UK will see any kind of spending boost. Very true – they are in it for the money. And Its up to each retailer to decide how competitive they are and whether their sales are enough to keep them going. That means that if they think they can survive without passing on the savings then they will.

In the end I think its the mainstreet shops that will need to pass this on more than anyone else and its there that the UK will see any kind of spending boost.

]]> By: Tom Doyle http://www.tomdoyletalk.com/2008/12/03/vat-down-uk-prices-down-on-playcom-well-not-really/comment-page-1/#comment-3287 Tom Doyle Wed, 03 Dec 2008 09:56:52 +0000 http://www.tomdoyletalk.com/?p=764#comment-3287 Hi Dan, Thanks for stopping by. Fair point I guess, I think it's something that should be policed though. What's the point in the government offering a reduction in VAT, to stem consumer spending I might add, to see it being soaked up by the retailer. I guess you could say the retailer is being silly too, but they are in it for the money at the end of the day.... Hi Dan,

Thanks for stopping by. Fair point I guess, I think it’s something that should be policed though. What’s the point in the government offering a reduction in VAT, to stem consumer spending I might add, to see it being soaked up by the retailer.

I guess you could say the retailer is being silly too, but they are in it for the money at the end of the day….

]]> By: Dan http://www.tomdoyletalk.com/2008/12/03/vat-down-uk-prices-down-on-playcom-well-not-really/comment-page-1/#comment-3286 Dan Wed, 03 Dec 2008 09:52:04 +0000 http://www.tomdoyletalk.com/?p=764#comment-3286 Nice... However I don't think it is illegal as retailers are not obliged to pass on any savings in vat to the consumer. Well not really... let me rephrase: If you buy an item for $5 and lets say the VAT is $1 of that. Say the government goes crazy and drops vat by half... to 50c. The retailer does not have to sell it for $4.50, they can still sell it for $5.00 as long as the government gets their 50c. The company just makes more profit on each item. That said, they should drop their price to be competitive but if they think they still are competitive then they aren't going to reduce prices. Nice… However I don’t think it is illegal as retailers are not obliged to pass on any savings in vat to the consumer. Well not really… let me rephrase:

If you buy an item for $5 and lets say the VAT is $1 of that. Say the government goes crazy and drops vat by half… to 50c. The retailer does not have to sell it for $4.50, they can still sell it for $5.00 as long as the government gets their 50c. The company just makes more profit on each item.

That said, they should drop their price to be competitive but if they think they still are competitive then they aren’t going to reduce prices.

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