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

[Big_Bald_Si]

Anyone have any idea?

[La BoIS Saint]

Anyone have any idea?

 

Have you tried emailing them?

[sotonswan]

I doubt it. Very few stores are this close to Christmas. Too bureaucratic.

 

It's no more than a Govt feel-good gimmick after all.

 

It does absolutely NOTHING for people who have lost their jobs either.

[Big_Bald_Si]

Have you tried emailing them?

 

Nope - but I hear Reading FC have announced they're reducing prices to pass the cut on to their fans - which I think is fair play.

[TheSaint75]

We can't afford the price stickers to be changed!

[John B]

I doubt it. Very few stores are this close to Christmas. Too bureaucratic.

 

It's no more than a Govt feel-good gimmick after all.

 

It does absolutely NOTHING for people who have lost their jobs either.

 

It is not a gimmick

 

There will be £12 billion more in the economy because of the VAT decrease

[exit2]

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

[Panda]

I can't help thinking you are just trying to have a dig at the people at the top at St Mary's and perpetuating this 'they are blood suckers' image.

[70's Mike]

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

 

 

You sure , they still charge £9.99 and pay less vat to government and increase their margins.

[Plumstead_Saint]

I doubt it. Very few stores are this close to Christmas.

You don't know what you are talking about.

Several big stores like John Lewis are doing it from tomorrow.

Keep up!

[Michelle]

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!

[exit2]

You sure ' date=' they still charge £9.99 and pay less vat to government and increase their margins.[/quote']

 

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

[Saint Martini]

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

 

With Saints in about just as bad a position as the British banks I'm guessing this gift is going straight to Saints and not to the customer/supporter.

[SET]

there is no law to say a company must pass on the vat change to consumers.

[krissyboy31]

there is no law to say a company must pass on the vat change to consumers.

 

I think you'll find there is. The price of the garment is ex vat and a further 17.5% goes to the goverment. As from monday it is the amount that goes to the government that changes, the price of the garment remains the same. If the club tried to pocket the difference they could be prosecuted for fraud and the fine that would follow would almost certainly bankrupt us.

[SET]

I think you'll find there is. The price of the garment is ex vat and a further 17.5% goes to the goverment. As from monday it is the amount that goes to the government that changes, the price of the garment remains the same. If the club tried to pocket the difference they could be prosecuted for fraud and the fine that would follow would almost certainly bankrupt us.

 

No i'm defo right, being that i've been in a meeting today with heads of finance, discussing how we will not be passing on the value of the VAT drop.

 

and that's a company whose balance sheet dwarfs any football clubs.

[TopGun]

I think you'll find there is. The price of the garment is ex vat and a further 17.5% goes to the goverment. As from monday it is the amount that goes to the government that changes, the price of the garment remains the same. If the club tried to pocket the difference they could be prosecuted for fraud and the fine that would follow would almost certainly bankrupt us.

 

But presumably they could increase the price ex-VAT so that the higher price plus lower VAT is the same as the old total price but with larger profit margin.

[krissyboy31]

No i'm defo right, being that i've been in a meeting today with heads of finance, discussing how we will not be passing on the value of the VAT drop.

 

and that's a company whose balance sheet dwarfs any football clubs.

 

Suggest you don't let the government know who your company is then!

[SET]

But presumably they could increase the price ex-VAT so that the higher price plus lower VAT is the same as the old total price but with larger profit margin.

 

exactly

[Fan The Flames]

I think you'll find there is. The price of the garment is ex vat and a further 17.5% goes to the goverment. As from monday it is the amount that goes to the government that changes, the price of the garment remains the same. If the club tried to pocket the difference they could be prosecuted for fraud and the fine that would follow would almost certainly bankrupt us.

 

But the prices shown include VAT.

 

Whats to stop shops raising the ex-vat price by 2.1739% so the end price stays the same, aint no law against that.

[Weston Super Saint]

But the prices shown include VAT.

 

Whats to stop shops raising the ex-vat price by 2.1739% so the end price stays the same, aint no law against that.

 

Ssssshhhhh don't spoil a good conspiracy theory.

[SET]

But the prices shown include VAT.

 

Whats to stop shops raising the ex-vat price by 2.1739% so the end price stays the same, aint no law against that.

 

nothing which is what krissyboy seems to be missing.

[krissyboy31]

But the prices shown include VAT.

 

Whats to stop shops raising the ex-vat price by 2.1739% so the end price stays the same, aint no law against that.

 

This is very true but I'd like to see them try and get it signed off by the auditors that they have raised the prices at the very same time as the VAT has dropped and by exactly the same amount.

[Weston Super Saint]

This is very true but I'd like to see them try and get it signed off by the auditors that they have raised the prices at the very same time as the VAT has dropped and by exactly the same amount.

 

LOL @ auditors giving a monkeys how much a company charges for their products.

[SET]

This is very true but I'd like to see them try and get it signed off by the auditors that they have raised the prices at the very same time as the VAT has dropped and by exactly the same amount.

 

nothing to be signed off by auditors

 

its down to a company to decide its pricing structure

 

where customers are used to seeing only the VAT-inclusive price, it would be relatively easy for a company to keep your prices at the same level as they were before the VAT reduction, meaning an extra 2.5 per cent of profit added straight to the bottom line.

 

This is not what the Chancellor intended but it is perfectly legal and, in these difficult times, is likely to be a course of action taken by many businesses.

[SET]

Mobile phone firms are a prime example as the type of comapny that might change their ex vat price.

 

for arguments sake, lets say Mr Tom's Mobile operator has 10m customers on £35 a month contracts, he's actually getting £29.79 before vat.

 

10,000,000 x 29.79 = £297,900,000

 

so now to keep customers at £35 a month they change the ex vat to £30.5

 

10,000,000 x 30.5 = 305,000,000

 

they've just legally generated an extra £7.1m of revenue

[SET]

and another one

 

season ticket holders have pre-paid for their seats, which are now subject to 15% vat not he 17.5% at time of purchase.

 

i assume the club will increase baseline price so those tickets are still worth the same.

[landford.saint]

The company I work for has just raised their prices by 2 and a bit % so the price with VAT is the same ... and I know many many firms are doing the same ... its

1. Legal

2. Makes more profit

3, Saves changing all the price stickers.

[Totton Red]

This is very true but I'd like to see them try and get it signed off by the auditors that they have raised the prices at the very same time as the VAT has dropped and by exactly the same amount.

 

A company charges whatever it likes for a product. If prices stay the same on Monday then they make a few extra pence. Nothing illegal about this and I'm sure that the trading standards are already panicking about the idiotic calls they will have from Monday onwards!

[La BoIS Saint]

Nice to know there's a few other accountants around here!!

[saintrich]

I'm not looking forward to changing all the price labels in my co-op at work on monday. :-|

[LGTL]

Nothing will happen in any shop. During the week of "implementation" all shops will just wuickly increase the price of everything, so that when the VAT cut happens everything will still be the same price as before.

[Carlos Fandango]

Well we are a small business and our costs have risen this year enormously. We have absorbed these rising costs meaning that we have made less profit on a higher turnover. I won't be lowering my prices. Imagine the moaning from my customers if I raised my prices every time my costs increase, some of my products from Europe have risen 10-20% in cost this year and I've had to take some of that on the chin.

[slickmick]

But in the construction industry its not so easy. For example: If you had a quote within the last month for a kitchen costing £7500 inc vat, the vat amount (7/47) would be £1117.02. Now as from Monday that customer would expect to now pay £7340.42 inc 15% vat (3/23). The Kitchen company are within their rights to increase their net price, but it wouldn't take long for word to spread and get a bad name.

Honest companies will honour the change. Dis-honourable ones will soon get found out and be the losers in the long run.

[slickmick]

Well we are a small business and our costs have risen this year enormously. We have absorbed these rising costs meaning that we have made less profit on a higher turnover. I won't be lowering my prices. Imagine the moaning from my customers if I raised my prices every time my costs increase, some of my products from Europe have risen 10-20% in cost this year and I've had to take some of that on the chin.

 

 

In my business, the costs have reduced (mainly by playing suppliers, one against the other) as competition has got squeezed.

So back to the first post, I would be very dissapointed if the club dont reduce the prices in the Megastore and will refuse to buy from there if they dont.

Edited 28 November, 2008 by slickmick

[OldNick]

inclusive of vat is different to a cost plus vat. Unless the price ticket says something like £10 plus vat I would suggest there is no law breaking.

[Mowgli]

This thread should give you a good idea of what a board meeting would be like if the fans ever did take over the club... (joke - before anyone gets too sensitive..)

[eurosaint]

It is not a gimmick

 

There will be £12 billion more in the economy because of the VAT decrease

 

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 !

[Big Bad Bob]

But the prices shown include VAT.

 

Whats to stop shops raising the ex-vat price by 2.1739% so the end price stays the same, aint no law against that.

 

And exactly what the Government has done with petrol, fags and booze. Whilst the VAT has reduced they've increased the tax in the background. End result Petrol, fags and booze remain the same price.

[OldNick]

its a nonsense anyway, stores including the club shop will drop prices due to neccessity more than 2.5% and still will have trouble selling.

[Matt SFC]

Onto more pressing matters, Lowe & co want me to enter my credit card details to order a free brochure.

 

Also, will we have a new away kit next season?

 

Thank you so much

[a1ex2001]

But in the construction industry its not so easy. For example: If you had a quote within the last month for a kitchen costing £7500 inc vat, the vat amount (7/47) would be £1117.02. Now as from Monday that customer would expect to now pay £7340.42 inc 15% vat (3/23). The Kitchen company are within their rights to increase their net price, but it wouldn't take long for word to spread and get a bad name.

Honest companies will honour the change. Dis-honourable ones will soon get found out and be the losers in the long run.

 

Every quote I've ever had from a builder/plaster etc has always been x amount + VAT not x amount inculding VAT there fore the builder will be able to keep his price the same. If I was preparing quotes that had a set period of time they are vlid for I would always quote without VAT.

[Whitey Grandad]

nothing to be signed off by auditors

 

its down to a company to decide its pricing structure

 

where customers are used to seeing only the VAT-inclusive price, it would be relatively easy for a company to keep your prices at the same level as they were before the VAT reduction, meaning an extra 2.5 per cent of profit added straight to the bottom line.

 

This is not what the Chancellor intended but it is perfectly legal and, in these difficult times, is likely to be a course of action taken by many businesses.

It's not exactly 2.5%, though, is it? It's 2.5% of the ex-vat price which is costs plus profit so depending on the margin it's a lot more than that. I can't see many smaller enterprises passing on the reduction. The cost of changing all the tickets for 13 months would probably come to about 2.5% anyway.

[positivepete]

I will bet the £1 store does not become the 97.5p store on Monday!

[Big Bad Bob]

I will bet the £1 store does not become the 97.5p store on Monday!

 

You're right it won't, it would become the 97.872340425531914893617021276596p store :rolleyes:

[Legod Third Coming]

It is not a gimmick

 

There will be £12 billion more in the economy because of the VAT decrease

 

 

 

A mate who runs a car dealership has had 22 orders for cars cancelled killing his cash-flow and plunging him into an £80k loss (which has bank are refusing to support) for the month of November because people want to re-order on Monday and save a few hundred quid each.

 

The CEO of NEXT wrote to the Telegraph because sales at their stores last weekend and this weekend have been decimated.

 

Thousands of businesses (mine included) have to pay the adminstration cost twice in 13 months of changing VAT rates and associated accounting costs.

 

If you could not buy a coat for £100, you cannot afford the £98 it will now cost anyway. The rise in fuel duty will hit my business and totally offset any VAT saving.... And if I want to drink or smoke to calm my nerves that will cost more too.

 

You're right. It't not a gimmick. It's a joke from a comedy government.

 

Only no one is laughing.

 

As for the club, maintain the prices where they were and invest the saving in staying afloat. That's what any fan would want surely?

[VectisSaint]

But the prices shown include VAT.

 

Whats to stop shops raising the ex-vat price by 2.1739% so the end price stays the same, aint no law against that.

... and just watch out in January 2010 when they add 2.5% VAT on top of their existing prices when the VAT rate reverts to 17.5%.

[OldNick]

I will bet the £1 store does not become the 97.5p store on Monday!

lol

[OldNick]

A mate who runs a car dealership has had 22 orders for cars cancelled killing his cash-flow and plunging him into an £80k loss (which has bank are refusing to support) for the month of November because people want to re-order on Monday and save a few hundred quid each.

 

The CEO of NEXT wrote to the Telegraph because sales at their stores last weekend and this weekend have been decimated.

 

Thousands of businesses (mine included) have to pay the adminstration cost twice in 13 months of changing VAT rates and associated accounting costs.

 

If you could not buy a coat for £100, you cannot afford the £98 it will now cost anyway. The rise in fuel duty will hit my business and totally offset any VAT saving.... And if I want to drink or smoke to calm my nerves that will cost more too.

 

You're right. It't not a gimmick. It's a joke from a comedy government.

 

Only no one is laughing.

 

As for the club, maintain the prices where they were and invest the saving in staying afloat. That's what any fan would want surely?

It is no good Le god many do not understand the useless idea this cosmetic vat deduction is. Edited 28 November, 2008 by OldNick

[OldNick]

A mate who runs a car dealership has had 22 orders for cars cancelled killing his cash-flow and plunging him into an £80k loss (which has bank are refusing to support) for the month of November because people want to re-order on Monday and save a few hundred quid each.

 

He's done well to have 22 orders to be cancelled. If the deals are definately still going to be signed next week surely the bank could support him, or they are worried about the health of his business.