VAT Increase ?

[admin_exported]

Hey

I know their are a few retailers that like to give advice on purchases here.

What is your companies stance on pricing for 2011?

Will you put your prices up in line with 20%, or slightly bring them down so the prices dont really change?

I know its a while away, but has their been any discussion.

Just wondering wether we should buy stuff before 2011.

I know its only 2.5%, but if you are spending 5000.00 thats a lot.

Cheers

 

[Andrew Everard]

I suspect few retailers and distributors will be in a position to discuss whether they will absorb or pass on the VAT increase at this early stage: they'll probably decide nearer the time depending on the effects of exchange rates, trading conditions in the second half of the year and so on.

But it's probably safe to say there'll be lots of 'beat the VAT increase' promotions running up to Christmas and in the opening days of the January sales, and prices will remain stable or increase slightly after the VAT rise comes into effect.

 

[Anonymous]

Yeh what that guy said.....

Yeh thats what I thought, bit too early to tell.

Maybe wait to buy my new speaker pack closer to xmas, want everything the same, all b&w or all MA ect..

Thanks andrew

 

[roger06]

Andrew Everard:
I suspect few retailers and distributors will be in a position to discuss whether they will absorb or pass on the VAT increase at this early stage: they'll probably decide nearer the time depending on the effects of exchange rates, trading conditions in the second half of the year and so on.

But it's probably safe to say there'll be lots of 'beat the VAT increase' promotions running up to Christmas and in the opening days of the January sales, and prices will remain stable or increase slightly after the VAT rise comes into effect.

Indeed. Christmas will be a frenzy! Pound on a 20 month high on the Euro today tho so if it keeps heading that way there's a chance things will even out.

Very difficult for retailers. The VAT increase they'll have to pay whether they put it on or not...so do they reduce margin or put buyers off and sell less?

Not relevant to hi fi but I reckon the increase will stimulate a lot more cash purchases with builders etc

 

[hammill]

roger06:Andrew Everard:

I suspect few retailers and distributors will be in a position to discuss whether they will absorb or pass on the VAT increase at this early stage: they'll probably decide nearer the time depending on the effects of exchange rates, trading conditions in the second half of the year and so on.

But it's probably safe to say there'll be lots of 'beat the VAT increase' promotions running up to Christmas and in the opening days of the January sales, and prices will remain stable or increase slightly after the VAT rise comes into effect.

Indeed. Christmas will be a frenzy! Pound on a 20 month high on the Euro today tho so if it keeps heading that way there's a chance things will even out.

Very difficult for retailers. The VAT increase they'll have to pay whether they put it on or not...so do they reduce margin or put buyers off and sell less?

Not relevant to hi fi but I reckon the increase will stimulate a lot more cash purchases with builders etc

Sadly, most products are priced in dollars. The pound is not doing so well against the dollar, so I don't expect any price drops.

 

[roger06]

hammill:roger06:Andrew Everard:

I suspect few retailers and distributors will be in a position to discuss whether they will absorb or pass on the VAT increase at this early stage: they'll probably decide nearer the time depending on the effects of exchange rates, trading conditions in the second half of the year and so on.

But it's probably safe to say there'll be lots of 'beat the VAT increase' promotions running up to Christmas and in the opening days of the January sales, and prices will remain stable or increase slightly after the VAT rise comes into effect.

Indeed. Christmas will be a frenzy! Pound on a 20 month high on the Euro today tho so if it keeps heading that way there's a chance things will even out.

Very difficult for retailers. The VAT increase they'll have to pay whether they put it on or not...so do they reduce margin or put buyers off and sell less?

Not relevant to hi fi but I reckon the increase will stimulate a lot more cash purchases with builders etc

Sadly, most products are priced in dollars. The pound is not doing so well against the dollar, so I don't expect any price drops.

Yes, that's very true. Annoying when it comes to oil!

 

[Anonymous]

canada16:

Hey

I know their are a few retailers that like to give advice on purchases here.

What is your companies stance on pricing for 2011?

Will you put your prices up in line with 20%, or slightly bring them down so the prices dont really change?

I know its a while away, but has their been any discussion.

Just wondering wether we should buy stuff before 2011.

I know its only 2.5%, but if you are spending 5000.00 thats a lot.

Cheers

Well we were in the same position at the end of last Year begining of this , nobody so far has mentioned that VAT has already gone up this year probably because it seems to have had no effect on prices.

I thought I was being smart and bought some very expensive speakers , well before I needed them just to beat the "rise" well need'nt have bothered nothing changed.

Retailers can't absorbe prices forever though and the reality is VAT will have gone up 5% in total from Jan 2009 to Jan 2010