<![CDATA[Latest posts for the thread "VAT rise leading to general price rise?"]]> http://www.dakkadakka.com/dakkaforum/posts/list/69.page JForum - http://www.jforum.net VAT rise leading to general price rise? UK VAT rise in January by buying up as many model you can lay your hands on in December?

Will you start buying models from abroad if it works out cheeper? Or do you think GW will rase the prices for foreign markets too to stop this?

Though this will only really affect us in the UK, feel free to comment if you are from elsewhere, especially if you think prices abroad will rise. ]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852168.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852168.page GMT VAT rise leading to general price rise?
Other retailers are getting their price hikes in now to avoid accusations of profiteering when the VAT goes up. I'm looking at you John Lewis!]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852201.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852201.page GMT VAT rise leading to general price rise? but more likely things are going to go up like anything thats price ends in .50 will go up to the nearest 10.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852451.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852451.page GMT VAT rise leading to general price rise? GW we are talking about here; never shy to miss an opportunity to raise prices. I am sure they will use the forthcoming VAT rise as an excuse to add an extra £10 onto prices.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852453.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852453.page GMT VAT rise leading to general price rise? GW will put the base cost of the models up is another matter.

I wonder if there's any way of classing their minis as children's clothes.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852455.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852455.page GMT VAT rise leading to general price rise?
Bullfrog wrote:To clarify, the prices to us will go up because of the extra 2.5% VAT, whether GW will put the base cost of the models up is another matter.


I am aware of that. What I am saying is that GW will use the VAT rise as a smokescreen to raise prices on top of the VAT rise.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852456.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852456.page GMT VAT rise leading to general price rise?
It would be nice if they just absorbed the rise in VAT into their prices, but then again world peace would be nice, but is just as likely to happen.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852461.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852461.page GMT VAT rise leading to general price rise? GW actually pass on the fall in VAT to the consumer? I don't recall their prices falling at all - if they did then it must surely mark one of the few times they have actually lowered prices.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852463.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852463.page GMT VAT rise leading to general price rise?
filbert wrote:Incidentally, did GW actually pass on the fall in VAT to the consumer? I don't recall their prices falling at all - if they did then it must surely mark one of the few times they have actually lowered prices.


I think the fall in VAT coincidentally coincided with their pricing restructure - ensuring they charge more in line with what the models are actually worth, rather than pretty much giving them away, as they were previously.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852469.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852469.page GMT VAT rise leading to general price rise?
They may well add a little to some of their prices but I doubt it'll be anywhere near £10. Between 2 & 5% might be considered a normal price rise and it might make sense to do that at the same time. On the other hand it'll look twice as bad to their customers if the VAT rise coincides with a price rise.

If I had to guess I'd say there will be a very small price rise, GW will want to cover costs incurred by the VAT rise safe in the knowledge that it won't be 20% for too long so they'll have to do the switcheroo all over again in the not too distant future.


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filbert wrote:Incidentally, did GW actually pass on the fall in VAT to the consumer? I don't recall their prices falling at all - if they did then it must surely mark one of the few times they have actually lowered prices.


Like all but a few retailers they kept prices the same and happily trousered the extra.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852473.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852473.page GMT VAT rise leading to general price rise?
Bullfrog wrote:
filbert wrote:Incidentally, did GW actually pass on the fall in VAT to the consumer? I don't recall their prices falling at all - if they did then it must surely mark one of the few times they have actually lowered prices.


Like all but a few retailers they kept prices the same and happily trousered the extra.


I thought this was the case; I certainly don't remember them trumpeting any price falls which they surely would have done.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852481.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852481.page GMT VAT rise leading to general price rise?
filbert wrote:
Bullfrog wrote:To clarify, the prices to us will go up because of the extra 2.5% VAT, whether GW will put the base cost of the models up is another matter.


I am aware of that. What I am saying is that GW will use the VAT rise as a smokescreen to raise prices on top of the VAT rise.


Well obviously. Because adding 2.5% to a box of Space Marines priced at £22.50 will result in a really messy number. Best round it up to £25. :p]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852484.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852484.page GMT VAT rise leading to general price rise?
Howard A Treesong wrote:Well obviously. Because adding 2.5% to a box of Space Marines priced at £22.50 will result in a really messy number. Best round it up to £25. :p


The rise is not actually 2.5% on top of the overall price, but a 2.5% increase on the 17.5% tax that currently exists, making VAT 20% of the overall price, which is not the same as a 2.5% price rise since the price you see already has VAT added on. You need to remove 17.5% from the current price, then add on 20% of the VAT free cost and compare to the original VAT included price to calculate the overall price rise induced by the extra VAT.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852491.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852491.page GMT VAT rise leading to general price rise?
Bullfrog wrote:Like all but a few retailers they kept prices the same and happily trousered the extra.


I thought shops were supposed to keep the VAT difference. By dropping VAT and keeping prices stable it effectively put millions in the pockets of highstreet businesses everywhere at no additional cost to the customer, which was good because banks were not loaning money and things were getting tight. What happened was that the big supermarkets who can afford to lose a little money started passing the VAT cut on as a publicity stunt and pressured the rest of the marketplace to follow suit. Which rendered it pointless, the public individually saved a matter of pennies while the businesses that should have benefited did not.


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SilverMK2 wrote:
Howard A Treesong wrote:Well obviously. Because adding 2.5% to a box of Space Marines priced at £22.50 will result in a really messy number. Best round it up to £25. :p


The rise is not actually 2.5% on top of the overall price, but a 2.5% increase on the 17.5% tax that currently exists, making VAT 20% of the overall price, which is not the same as a 2.5% price rise since the price you see already has VAT added on. You need to remove 17.5% from the current price, then add on 20% of the VAT free cost and compare to the original VAT included price to calculate the overall price rise induced by the extra VAT.


I am aware of this as I've explained it to others when the VAT was cut last year but it's rather a mouthful as you've demonstrated. ]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852492.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852492.page GMT VAT rise leading to general price rise? http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852497.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852497.page GMT VAT rise leading to general price rise?
filbert wrote:I thought the whole point of the VAT cut was to be passed on to the consumer. I was under the impression it was intended as a method to encourage consumer spending.


As did I. I know a couple of shops kept their prices the same and just discounted you at the til when you paid. Saved them having to go and change all the prices on all the items in the shop, and also made you feel warm inside when you got free money back when you paid ]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852502.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852502.page GMT VAT rise leading to general price rise?
imho it will be as well to maintain steady purchases and spread the outlay.
On the otherhand if you know what you are wanting and have say a battalion and a tanky thing or three needed, and you have been good, Santa might pop it in yer stockings.

]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852503.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852503.page GMT VAT rise leading to general price rise?
filbert wrote:I thought the whole point of the VAT cut was to be passed on to the consumer. I was under the impression it was intended as a method to encourage consumer spending.


^^This.

Also, if you're trying to calculate it you have to remember that you remove 17.5% of the nett cost not the retail price, doing it that way will skew your numbers.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852508.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852508.page GMT VAT rise leading to general price rise? On the other hand GW will round it up to £25

oops only just seen the poll options ]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852509.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1852509.page GMT VAT rise leading to general price rise?
2.5% of 1GBP is 2.5p so

2.5 x 20 = 50p

I'm really not looking forward to getting the extra VAT rise on GW's already overpriced stuff if/when I return home.

]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865313.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865313.page GMT VAT rise leading to general price rise?
We're changing from selling something at X+17.5% to X+20%, so the total increase is around 1.98%

It doesn't make much difference, it's still pennies, and it'll still be rounded up to the nearest fiver, but if you want to find out what the price rise SHOULD be, add another 2%ish to the current retail price.




]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865355.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865355.page GMT VAT rise leading to general price rise?
My personal opinion is that they will absorb the rise in January until April then tack on a slightly higher rise than normal in the new financial year. This is all speculation though .]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865373.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865373.page GMT Re:VAT rise leading to general price rise? http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865374.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865374.page GMT Re:VAT rise leading to general price rise?
SaintHazard wrote:Option 6: What is this strange foreign language you are speaking?


In the UK were getting hammered this comming January with a rise of our VAT rate (Value added tax) going from 17.5% to 20%. This will probably cause a rise in prices over here in the UK.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865406.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865406.page GMT VAT rise leading to general price rise?
vat price = (117.5/100) * pre-vat price

Thus:

Pre-vat price = (vat price * 100)/117.5

So for a £20 box, the pre-vat price would be £17.02.

Calculating the new price at 20% vat, you get:

new vat price = (120/100)* £17.02

new vat price = £20.43.

A price increase of 43p, or a rise of just over 2p per (VAT inclusive) £1.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865430.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865430.page GMT VAT rise leading to general price rise?
Obsidian wrote:So, this begs the question, in the (hopefully) unlikely event that prices rise would you be tempted buy from abroad if it turned out cheeper or do you think that they would rise global prices to match?


Bit of a non option to begin with at least here in BC - I can buy GW stuff from the UK, and get it shipped out to Canada for less than I can buy it on the shelves here. Even comparing GW store prices, things are still cheaper in the UK.

For those that want an example AOBR is 60GBP including VAT, here it's the equivalent of 66GBP which does not include the 12% sales tax, so it's almost 74GBP after that.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865450.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865450.page GMT VAT rise leading to general price rise? http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865759.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865759.page GMT VAT rise leading to general price rise?
Anshal wrote:Well in danger for beeing a complet nOOb, may a simpel Norwegian ask what VAT is?


Value Added Tax. It is added onto the price of pretty much everything in the UK and is currently set at 17.5% of the total price. It is due to rise to 20% soon.

Recently it was dropped down to 15% at the start of the recession in order to try and get people to spend money.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865770.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865770.page GMT VAT rise leading to general price rise?
Anshal wrote:Well in danger for beeing a complet nOOb, may a simpel Norwegian ask what VAT is?


Merverdiavgift (MVA)]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865796.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865796.page GMT VAT rise leading to general price rise? http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865834.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865834.page GMT VAT rise leading to general price rise?
lowmanjason wrote:this is basic economics, corporations always pass the cost of taxes to the consumers. thats just the way it is. its a buisness its there to make a profit. not pay money to the government


This for sure. Regardless if you like it or not.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865848.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1865848.page GMT VAT rise leading to general price rise?
lowmanjason wrote:this is basic economics, corporations always pass the cost of taxes to the consumers. thats just the way it is. its a buisness its there to make a profit. not pay money to the government


That's not really the issue, the point is often tax rises are accompanied by prcie rises as the sellers round off to the nearest 5 or 10 pounds, you won't see 20.50GBP it'll be 24.99.]]> http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1866030.page http://www.dakkadakka.com/dakkaforum/posts/preList/312287/1866030.page GMT