VAT 15%

[markytbass]

I've been looking on line at some bass gear, now I know the 2.5% reduction in VAT isn't much but would probably cover the postage on say a £300 amp. Now I didn't do a before and after on everything but I havn't seen a reduction in price on what I have looked at. I thought maybe they hadn't changed the prices yet and would refund the difference. On closer inspection it would seem that some shops have put the net price up cancelling out the vat reduction (that is not much in the first place).

[~tl]

On a £300 amp the saving would be about £7. I guess that could cover postage if you live near the shop

[Toasted]

Some shops have done what you say, some are adding the reduction on checkout. Some shops are very clear and use big red writing all over their websites to tell you about the 15% VAT rate. I know which ones I'm buying from

[OldGit]

Not really a surprise ...

I did buy something cheap in PC World last week and it took about 20 keystrokes for the checkout person to change the VAT from the marked price to the new price (a total difference on the transaction of about 6 pence I think ...)

Save the economy? I don't think so ....

Now if they'd cut the tax on diesel by 10p per litre I'd have been cheering

[peted]

I suppose a lot of shops have seen their profit margins closing up as the Pound Sterling has had less buying power abroad (I don't think there's very much bass gear actually manufactured in the UK). They've probably used the 2.5% reduction in VAT to recoup some of those lost margins, essentially keeping their prices the same.

[bremen]

[quote name='peted' post='342652' date='Dec 2 2008, 09:27 AM']I suppose a lot of shops have seen their profit margins closing up as the Pound Sterling has had less buying power abroad (I don't think there's very much bass gear actually manufactured in the UK). They've probably used the 2.5% reduction in VAT to recoup some of those lost margins, essentially keeping their prices the same.[/quote]

Good point - I've been surprised at how little Thomann's prices have risen considering the strength of the € and $.

We're all doomed, though, it's true.

[Kev]

shops will reduce the tax to 15% until xmas, and then will raise there prices by 2.5% in january, effectivly making the tax reduction redundant

[markytbass]

I didn't think for one second that we would get anything out of it.

[Dood]

[quote name='markytbass' post='342738' date='Dec 2 2008, 10:33 AM']I didn't think for one second that we would get anything out of it.[/quote]

Oh absolutely.. as per usual they are quick to advertise what looks like they are giving with one hand.. yet you just know they are takin' it all back with the other elsewhere. The old addage 'if it looks to good to be true....'

[Toasted]

I honestly can't believe the amount of complaining over a 2.5% cut in price of just about everything we buy as consumers. It's frankly, amazing. The government can't even give money away without people whinging.

[OldGit]

[quote name='Toasted' post='342749' date='Dec 2 2008, 10:41 AM']I honestly can't believe the amount of complaining over a 2.5% cut in price of just about everything we buy as consumers. It's frankly, amazing. The government can't even give money away without people whinging.[/quote]

People here are not whingeing about that the reduction in the tax, they are sceptical if it will be passed on to the consumer by the retailer.

[Jean-Luc Pickguard]

stringsdirect aren't passing on the saving. I was going to order a few hundred quids worth of stuff from them early yesterday morning while I thought I still had a job, so in a way its good that I was put off ordering by their "we're not passing on the saving" message on their web site.

[Tee]

I was wondering when a VAT thread would pop up ^_^

I benefited from it the other day, before it was enforced, actually. I bought a few things at John Lewis, just some boring household items and i was puzzled as to why they were cheaper at checkout, than the shelf prices. Then i remembered. Good on JL for acting so quickly, i thought.

[Dubs]

I’m sure a few retailers will be charging normal prices, and then giving the tax man a 15% VAT, so effectively pocketing the 2.5% discount. In all honesty, I don’t really mind this as it will help keep small businesses afloat.

[Bilbo]

Got a DVD out of Blockbusters last night and it only cost £3.87 instead of £3.95. That's 8p saved. At this rate, if I take out 31,250 DVDs, I will have saved enough for a 5-string Wal

PS That's one a day for 85 years. I'll be 130 years old by then. Ah well, I could still get the Stones gig!

Edited December 2, 2008 by bilbo230763

[Toasted]

[quote name='bilbo230763' post='342789' date='Dec 2 2008, 11:06 AM']Got a DVD out of Blockbusters last night and it only cost £3.87 instead of £3.95. That's 8p saved. At this rate, if I take out 31,250 DVDs, I will have saved enough for a 5-string Wal [/quote]

Come on Bilbo, that's only 5 years and 4 months of constant viewing (assuming 90 minutes per film) - where's your stamina?

Edited December 2, 2008 by Toasted

[guyl]

Manufacturing has been killed off in the UK, so retailers have to buy abroad. The weak pound has hit hard as everyone is buying Christmas stock. Being able to recover 2.5% is a pittance compared to the pound weakness against prety much everything, but especially USD, EUR, RMB, JPY etc. I don't expect many to pass on the entire 2.5% - prices will still rise wherever possible.

The chancellor is just getting the UK into more debt with the VAT reduction so the pound is likely to get weaker still.

Personally speaking, my main overheads are a mortgage (banks not passing on interest rate cuts), and petrol, food, booze, house bills, so the rate cut won't much help save for GAS attacks.

[chris_b]

I'm looking at flooring for the kitchen and everyone I've been to so far has reduced the VAT. I would refuse to deal with any company who isn't passing the reduction on.

[dave_bass5]

[quote name='Jean-Luc Pickguard' post='342774' date='Dec 2 2008, 10:58 AM']stringsdirect aren't passing on the saving. I was going to order a few hundred quids worth of stuff from them early yesterday morning while I thought I still had a job, so in a way its good that I was put off ordering by their "we're not passing on the saving" message on their web site.[/quote]
Do you mean this messgae?

"Over the past few weeks and even days, we have encountered prices rises from our suppliers of 10, 20 and even 30%, some effective immediately. These rises have been mainly fuelled by the falling value of the pound against US$ , Euro and the Yen.

We have resisted increasing our own prices until, as and when we have to replenish depleted stocks. With the help of the blanket 2 1/2% VAT cut announced by the chancellor effective 1st December 2008 we hope to hold our present prices till the end of the year and in some cases till the end of January. There will inevitably be exceptions but we will endeavour to do our best. That said if there are any deals to be done and we are able to pass discounts onto customers you can rest assured we will do that too!"

This wont put me off using Strings direct and at least they are giving us warning. I guess IF their suppliers are raisin their prices then it will hit all the music stores, not just SD.

[Dubs]

[quote name='dave_bass5' post='342879' date='Dec 2 2008, 11:55 AM'][i]"Over the past few weeks and even days, we have encountered prices rises from our suppliers of 10, 20 and even 30%, some effective immediately. These rises have been mainly fuelled by the falling value of the pound against US$ , Euro and the Yen.

We have resisted increasing our own prices until, as and when we have to replenish depleted stocks. With the help of the blanket 2 1/2% VAT cut announced by the chancellor effective 1st December 2008 we hope to hold our present prices till the end of the year and in some cases till the end of January. There will inevitably be exceptions but we will endeavour to do our best. That said if there are any deals to be done and we are able to pass discounts onto customers you can rest assured we will do that too!"[/i][/quote]

That sounds very fair IMO, and realistically they're still worse off now with the 2.5% VAT reduction than they were 4 months ago with the strong pound vs US$.

A guess you have to weigh it up like this; either a 30% price increase with a 2.5% reduction in VAT, or no price increase and no 2.5% VAT reduction? I know what I’d prefer as a consumer. No brainer really.

Edited December 2, 2008 by benwhiteuk

[Toasted]

That assumes they don't have fixed price deals on their inventory / incoming stock. It doesn't seem very sensible for me to be an import business that hasn't agreed a sliding scale of cost based on exchange rates.

[Dubs]

[quote name='Toasted' post='342899' date='Dec 2 2008, 12:08 PM']That assumes they don't have fixed price deals on their inventory / incoming stock. It doesn't seem very sensible for me to be an import business that hasn't agreed a sliding scale of cost based on exchange rates.[/quote]

They’ll still incur extra costs though. You won’t be able to agree an import deal that guarantees the strength of the currency you’re paying in indefinitely. I know what you’re saying though.

[mike257]

I had an email from Dawsons saying they've reduced their web prices, and they're making the reduction at the checkout in stores (because it's too much hassle changing all the tickets!!), so that's one place worth checking out.

My gear budget doesn't stretch past the odd new set of strings at the moment though, so it's lost on me!

[Geddys nose]

[quote name='Toasted' post='342749' date='Dec 2 2008, 10:41 AM']I honestly can't believe the amount of complaining over a 2.5% cut in price of just about everything we buy as consumers. It's frankly, amazing. The government can't even give money away without people whinging.[/quote]


TBH its is the worst way to try to get money to the consumer as most retailers will just say they are knocking it off and not bother, I work in a service industry and all across the board nothing has been knocked off in fact all it has done is increase the workload on working out the VAT, now as someone said a reduction in fuel would have been a better way but that would make to much sense

[Rich]

[quote name='Toasted' post='342749' date='Dec 2 2008, 10:41 AM']I honestly can't believe the amount of complaining over a 2.5% cut in price of just about everything we buy as consumers. It's frankly, amazing. The government can't even give money away without people whinging.[/quote]You're right, they're damned if they do and damned if they don't. As I mentioned in another thread, what annoyed me about the whole VAT thing is that when the 2.5% cut was announced it was roundly criticised as merely a vote-grabbing exercise that won't make any difference to people's fiscal situation... but when rumours arose of this alleged 1% VAT [i]rise[/i], it was roundly criticised as a huge stealth tax which will make us all massively worse off.
Or perhaps I'm spending too much time reading the right-wing nonsense on the BBC's Have Your Say pages