Slow Down In Sales

[Darren B]

OK, today we noticed a sudden drop in counter sales, i have my suspicions that it is connected to the possible VAT reduction. Probably does not effect everyone but we are predominately trade, so sales are a few hundred £ to many thousands so 2.5% reduction would make a difference to some of these. My London branch has also noticed it more than us here

Just wondered if people dealing with the trade have noticed a difference today/last few days.

[acompton]

Surely trade customers aren't concerned about the VAT percentage because they just claim back the VAT paid against VAT owned on outputs. It's private customers that should benefit from a VAT reduction (if the shop is passing the reduction on).

[Darren B]

Only those that are VAT registered, Im dealing with the building trade here -black markets and stuff

[Rich Brady]

I agree, I'd have expected to see sales for a VAT registered retailer to drop off. Customers waiting for the 2.5% drop in price before they purchase...

[brian.mc]

Going to be great fun - repricing entire site and shop 4 weeks before Christmas!

[Darren B]

is it not a case of changing the VAT? thats what im planning to do

[brian.mc]

Our prices are VAT inclusive.

[acompton]

is it not a case of changing the VAT? thats what im planning to do

Me too. Pass the saving on to the customer. Got to be some competitive mileage in that.
BTW. I'm not seeing a drop-off in sales, either.

[chris ashdown]

Its been so well published in the papers, that I would imagine most people are just waiting for confirmation

Hope things work out OK Darren, but guess your customers are in for a very hard time for the next few months whatever happens.

My only advice to companies these days is watch your cashflow and then look again

[chris ashdown]

Also over the next few months stand by for big increases of Clothing and other items from abroad that are purchased in Dollars, with the pound as it is there are going to be some big increases in costs that will far outway the small changes the daft duo in downing street are likely to make

[leehack]

As a consumer, i'd be looking to see dodgy prices on things for a while, this gives me the greatest faith that prices have actually been lowered.

As a site owner, although it will mean i have a little extra work to do initially, i'd be delighted to see anything that can encourage a sale or make a sale more possible.

The question is, which one of the big changes is the red herring that will not actually happen and is just a rumour?

[Mike Hughes]

The question is, which one of the big changes is the red herring that will not actually happen and is just a rumour?

None of them. it seems to be a case of "We don't know what's going to work so we'll do a bit of everything, hope for the best, and then no-one can accuse us of not doing enough".

Mike

[Darren B]

Hope things work out OK Darren, but guess your customers are in for a very hard time for the next few months whatever happens.

My only advice to companies these days is watch your cashflow and then look again

Cashflow is the key we do not rent or lease anything other than the building. No one knocking on the door asking for their money.

Its kinda weird with some of our customers, some are dead others reckon they are as busy as ever? but then i take what is said with a pinch of salt.

Within a few % we are about the same as last year but guessing there is more to come, the next 6 months is key.

[RuralWeb]

The building trade up here has almost collapsed. Several local companies have gone bust, a major housing development has been stopped and another local company has just lost £13M when funding for the redevelopment of a town nearby was pulled. It has left the town center a building site and local business is taking a big hit as people cannot now get into town.

[Darren B]

The building trade up here has almost collapsed. Several local companies have gone bust, a major housing development has been stopped

All the large developments here have halted aswell, im guessing we are lucky, we deal a lot with the DIY'er and independent builders, the number of larger building companies we supply is small really which might be why we not suffering just yet, im guessing if we were big into new builds we would be feeling it. That said we have lost a couple of our customers already and i got another letter this morning about one taking legal advice in relation to insolvency