Will Saints be reducing store prices with the VAT cut as of Monday?

[Window Cleaner]

It is no good Le god many noit in business do not understand the useless idea this cosmetic vat deduction is.

 

It is destined to dupe the public into spending money they don't have

as per usual. Yer average Brit is as thick as two short planks.

 

There is a thingy on the BBC site today talking about the difference between

entrance standards to Chinese and UK universities. It can only be a joke I suppose becaue the UK uni math question is what I studied in the big kids class at Bitterne Park Junior School. A 3/4/5 right angled triangle.All people over 50

in the Uk would take about as long to write their name as to answer the question.Those probably understand the VAT scam, younger than that I couldn't say, people sent Lady Di wedding presents which she in turn gave to charity.Perhaps the VAT scam is likely to take people in.

[hythesaint]

In theory yes they do. The Vat is your tax being paid on a product.

 

So in theory an item will always cost you £7, but the Goverment then tax you on that £7 at £17.5% total cost is now £8.23

 

on monday the same item is still valued at £7 but with the tax is £8.05

 

I understand where you are coming from as they might adjust the prices to compensate the difference

So.... if I by an item from the saints store for £35.99 inc VAT today, and, say it doesn't fit. I return it next week and want my money back, how much will I be credited?

[Window Cleaner]

So.... if I by an item from the saints store for £35.99 inc VAT today, and, say it doesn't fit. I return it next week and want my money back, how much will I be credited?

 

£35.99; VAT is charegeable at the point of sale, you paid it, they refund it.

[Patrick Bateman]

They have to by law. We have been changing our finance systems and websites ready for monday! Has been a pain in the ass

 

No they don't. Sorry mate!

 

As long as the company pays the correct amount of VAT to HMRC they can charge what they like for the goods. So effectively by not passing on the VAT cut to the consumer, shops (and the club!) can increase their margins.

 

This is what the VAT cut is really aiming to do. Aiming to get company profits up, meaning they have more money to spend on expansions and the hiring of staff. Hiring more staff helps the economy in more ways than one.

[Window Cleaner]

That's not strictly correct John! It means that the exciseman will receive £12 billion less, assuming spending remains the same! There is not consequently £12 billion more in the economy !

 

Well this is the old Ouroborous question isn't it.

The tail eating snake or worm.

 

If sales drop, the VAT on them drops and the government income drops.

If you can boost sales by dropping the VAT rate it could well be that you boost sales enough to compensate for the drop in tax revenue.

This is always the idea behind all special offers, promotions and cash injections into the economy,more of less is greater that less of more.

[St Paul]

No they don't. Sorry mate!

 

As long as the company pays the correct amount of VAT to HMRC they can charge what they like for the goods. So effectively by not passing on the VAT cut to the consumer, shops (and the club!) can increase their margins.

.

 

Spot on, I cant believe some of the posts on this thread. It's really simple to understand, nobody has any legal duty to pass this on to the customers,The morale duty is another thing. I suggest that the major retailers will do so, due to the adverse publicity in not doing so. Whether Saints will, is a differant matter.......

[OldNick]

Spot on, I cant believe some of the posts on this thread. It's really simple to understand, nobody has any legal duty to pass this on to the customers,The morale duty is another thing. I suggest that the major retailers will do so, due to the adverse publicity in not doing so. Whether Saints will, is a differant matter.......

I think it is conveinient as the club like all other retailers are hurting.they would have had to cut prices anyway and so this may take up some of that cut.

[VectisSaint]

Spot on, I cant believe some of the posts on this thread. It's really simple to understand, nobody has any legal duty to pass this on to the customers,The morale duty is another thing. I suggest that the major retailers will do so, due to the adverse publicity in not doing so. Whether Saints will, is a differant matter.......

The really smart ones will drop their price a little, but not as much as the decrease in VAT, thus showing a price reduction that will increase sales a little and still make a larger profit per item than pre-VAT decrease. Its called supply and demand.

[Whitey Grandad]

The really smart ones will drop their price a little, but not as much as the decrease in VAT, thus showing a price reduction that will increase sales a little and still make a larger profit per item than pre-VAT decrease. Its called supply and demand.

But demand is in short supply at the moment. And why is it that when my customers ask for a bigger quantity then they expect a lower price?

[IFHP]

They should, as it has to be done.

 

Our shop has got 4,000 or so product lines in branch, and they're preparing for it all as we speak. Thank goodness we in the Post Office don't have to worry about any of it!

 

 

They don't have to reduce anything where the price includes VAT.

 

The only "fans" to benifit from this will be those who pay for coporprate hospitalty where the price excludes VAT.

The current cost for the Mick Channon suit is £99 + VAT. So for ror last weeks game it would have cost £116.33 but for next weeks game will cost £113.85.(including VAT)

[St Paul]

I think it is conveinient as the club like all other retailers are hurting.they would have had to cut prices anyway and so this may take up some of that cut.

 

The problem is the logistics of it, take someone like B&Q, they have thousends of lines and all the price labels will need changing(Unless they make the deductions at the till, which can only be a short term measure).

 

It should be easier at Saints, however it really is peanuts. I suggest had the Club announced a grand sale last month , with all prices reduced by 2.5% they would have been laughed at. Personally, I've no problem with the Club keeping the extra 2.5%,but, no doubt if they do, there'll be another pro/anti Lowe 6 page debate.........