VAT changes

[Nigelb]

Anyone else thinking this VAT change is a pain in the a**e?

Apart from the fact that every section level and subsection level price will have to be changed manually (erk), am not entirely sure whether to pass on the saving to customers, as really wanted to keep prices ending in .99

Any thoughts?

[guccij]

Customers will expect prices to be lower. I have changed mine already (with a note on website explaining that VAT is still 17.5% until 1st Dec) - which has given me some interesting figures. I have rounded down the incl. prices where necessary.

There is nothing to stop you revising your prices downwards from 1st December, then putting them back up again, still with 15% VAT, at some future date.

[Mike Hughes]

Yes, it's a pain.

I'd expect shoppers to be on the look out for the discount up to christmas and probably in the after chrsitmas sales. After that, all the prices will change anyway and it's reasonable to expect prices to go back up by at least 2.1% or so.

This all depends on your market and when you / your suppliers adjust your prices anyway. In my industry, suppliers tend to have new catalogues and prices each calendar year so prices are usually adjusted in the new year anyway.

At the end of the day it's up to you to set your prices at whatever level you think is best for your business.

Mike

[TraceyHand]

At the end of the day it's up to you to set your prices at whatever level you think is best for your business.

Mike

I think this is the key point, tbh.

Unfortunately, our VAT reg site is still on V8 (and so using VAT exclusive pricing) which should be a good thing except that we want to keep the prices UNchanged so we will need to adjust them up so that the 'price including VAT' stays the same.

If we were on V9 and using VAT inclusive, we'd be ok although I am considering an upgrade so might just do that big leap instead (if I have to change all the prices anyway, might as well do it putting them vat inclusive into V9!)

Sorry, I rambled...but I'm agreeing with Mike that, while many customers will expect a price reduction, it's very much market-led, IMO

[pinbrook]

am not entirely sure whether to pass on the saving to customers, as really wanted to keep prices ending in .99

you could change all your prices to end with .95 or .75 and use this as a marketting tactic...

but its your call how to price your shop...

[warmrooms]

Vat

Hi

I was thinking a few months ago, "What if this wonderful government ever increase/decrease VAT? If they do I am stuffed". Well, the time has happened.

The way I set up my website is probably incorrect, i wanted to show prices inclusive of VAT, which is what I did. But in the CHOICE name of each item I entered the price as well as product reference, size etc. The reason I did this is that alot of our products have so many permutations that the scroll down on each page would be huge and people would loose interest.

I will have to change the whole format for the website, which is obviously not done overnight. Come December 1st I will change my business settings to say that prices are inclusive of VAT at 15% to buy me time and make more margin on the products but this may make me uncompetitive.

Any ideas anybody for a not so painstaking way for me to do this?

Any response is appreciated.

Thanks

Brian
Warm Rooms LTD
www.warmrooms.co.uk