Retailers scamming unwary buyers.....
Retailers scamming unwary buyers.....
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Discussion

Tony*T3

Original Poster:

20,911 posts

276 months

Monday 15th December 2008
quotequote all
Just a quick observation about price confusion in the high street over VAT reductions and other 'not in our favour' money issues....


Firstly VAT 'scams':
Certain retailers have altered the ticket price of items, others are saying they are 'taking it off' at the till.
However, I've notice a couple of places now doing neither. Well, I dont accept that their items cost £10.34 previously (or whatever it should be) and just happily now cost £9.99 after the VAT drop.
Another 'scam' is car park charges. According to one group they 'generoulsy donate' the 2.5% rate reduction to charity on our behalf. Obviosuly, this is because their machines cnt dispense small coins. But what legal right do they have on this? I've paid probably £40 in car parking charges over the last few weeks. i already give sufficient to charity thank you very much.

Secondly xmas Special offer prices.
I've brought our local Tescos up several times on recent visits over blatantly incorrect pricing of goods. Their "price promises" advertised on big signs in the store often are blatantly incorrect. Intead of items being 'half price' they turn out to typically have a much less generous reduction. According to the management when questioned about this, the computer is ALWAYS correct and the items advertised are stock thats now run out, despite it being replaced with identical stock. So double check your bill as youre going along. Worth making nore of 'special offer prices' rather than just assuming you are paying that price at the check out... Every little helps you thieving b********s!

Thirdly "multibuy offer". Why does the retailer believe that anything advertised as a "Buy on, get one half price" offer is not covered by the VAT reduction? This is plainly wrong and to me tax evasion. Seems you get two of something for the same price now after the VAT reduction as you did before the reduction. Point in case, La Senza - most items offerred as 'multi-buy' are the same cost now to the purchaser as before the VAT reductions. so they are keeping the VAT portion for themselves. If they choose to give another pair of knickers away when you pay a tenner then thats their perogative. However, the cost of the original pair should have been reduced, but is not being done.

HRG

72,863 posts

268 months

Monday 15th December 2008
quotequote all
Despite Alistair's greatest efforts, everything still costs .99p. Who could have predicted that rolleyes

anonymous-user

83 months

Monday 15th December 2008
quotequote all
You appear to be missing the simple fact that retailers are under no obligation to pass on the VAT reduction to their customers, if they choose to keep the 2.5% extra for themselves by increasing their ex VAT price and therefore keeping the VAT included price the same as before they are entitled to do so. It isn't a scam it's called business!

Reevesy

137 posts

216 months

Monday 15th December 2008
quotequote all
Governments fault, they should have never changed the VAT rate, it was stupid and doesn't help me or you as most/some retailers will just increase their net price so that they keep the extra money.

minimoog

7,395 posts

248 months

Monday 15th December 2008
quotequote all
Bought a watch the other day. Sticker price £160. "That'll be less the 2.5% VAT then" says I.

"Ah no Sir, we've already taken that off." bandit

Yeah right, so it was £163.48 before?

Bought it anyway as everything had another 25% off.

Simpo Two

92,708 posts

294 months

Monday 15th December 2008
quotequote all
I wouldn't get so steamed up about 2.5%.

Anyway, the best mis-offer I've seen recently was Woolworths. On the window there was a big sign which said 'All stock 50% off'.

Underneath were two signs which read '10% off' and '20% off'. Go figure, as they say.

theboyfold

11,469 posts

255 months

Monday 15th December 2008
quotequote all
Bluequay said:
You appear to be missing the simple fact that retailers are under no obligation to pass on the VAT reduction to their customers, if they choose to keep the 2.5% extra for themselves by increasing their ex VAT price and therefore keeping the VAT included price the same as before they are entitled to do so. It isn't a scam it's called business!
I had no idea that was the point, I thought everything that had VAT on it was coming down by 2.5%

HRG

72,863 posts

268 months

Monday 15th December 2008
quotequote all
theboyfold said:
Bluequay said:
You appear to be missing the simple fact that retailers are under no obligation to pass on the VAT reduction to their customers, if they choose to keep the 2.5% extra for themselves by increasing their ex VAT price and therefore keeping the VAT included price the same as before they are entitled to do so. It isn't a scam it's called business!
I had no idea that was the point, I thought everything that had VAT on it was coming down by 2.5%
The VAT has come down, however in a lot of cases the pre-VAT amount has gone up to compensate.

Jazzer77

1,533 posts

223 months

Monday 15th December 2008
quotequote all
Its hardly a scam.
The item has a price on it - if you like the price bring it to the till and pay for it.
If you dont like the price - shop elsewhere.

minimoog

7,395 posts

248 months

Monday 15th December 2008
quotequote all
2.5% doesn't bother me either way, it's the shifty way some retailers are dealing with it that is fleetingly irksome.

oyster

13,723 posts

277 months

Monday 15th December 2008
quotequote all
So what if some retailers keep some of the 2.5%?

It's still additional money in the economy that might help to save retail jobs.

An extra 2.5% on Woolworth's bottom line a year ago might just have saved it.

Hyperion

16,952 posts

229 months

Monday 15th December 2008
quotequote all
Simpo Two said:
I wouldn't get so steamed up about 2.5%.

Anyway, the best mis-offer I've seen recently was Woolworths. On the window there was a big sign which said 'All stock 50% off'.

Underneath were two signs which read '10% off' and '20% off'. Go figure, as they say.
It actually read 'All stock UP TO 50% off'.

anonymous-user

83 months

Monday 15th December 2008
quotequote all
Why isn't everything in the pound store now 97.5P(ish)?

theboyfold

11,469 posts

255 months

Monday 15th December 2008
quotequote all
HRG said:
theboyfold said:
Bluequay said:
You appear to be missing the simple fact that retailers are under no obligation to pass on the VAT reduction to their customers, if they choose to keep the 2.5% extra for themselves by increasing their ex VAT price and therefore keeping the VAT included price the same as before they are entitled to do so. It isn't a scam it's called business!
I had no idea that was the point, I thought everything that had VAT on it was coming down by 2.5%
The VAT has come down, however in a lot of cases the pre-VAT amount has gone up to compensate.
OK, does that not defeat the point though? I'm just nor sure what the fundamental reason for doing it was? Was it to make the consumer feel like they are getting a little extra or to give the retailer a little extra profit?

Deva Link

26,934 posts

274 months

Monday 15th December 2008
quotequote all
theboyfold said:
Bluequay said:
You appear to be missing the simple fact that retailers are under no obligation to pass on the VAT reduction to their customers, if they choose to keep the 2.5% extra for themselves by increasing their ex VAT price and therefore keeping the VAT included price the same as before they are entitled to do so. It isn't a scam it's called business!
I had no idea that was the point, I thought everything that had VAT on it was coming down by 2.5%
Really? I didn't think it would make the slightest difference. What a waste of £12.5BN.

HRG

72,863 posts

268 months

Monday 15th December 2008
quotequote all
theboyfold said:
HRG said:
theboyfold said:
Bluequay said:
You appear to be missing the simple fact that retailers are under no obligation to pass on the VAT reduction to their customers, if they choose to keep the 2.5% extra for themselves by increasing their ex VAT price and therefore keeping the VAT included price the same as before they are entitled to do so. It isn't a scam it's called business!
I had no idea that was the point, I thought everything that had VAT on it was coming down by 2.5%
The VAT has come down, however in a lot of cases the pre-VAT amount has gone up to compensate.
OK, does that not defeat the point though? I'm just nor sure what the fundamental reason for doing it was? Was it to make the consumer feel like they are getting a little extra or to give the retailer a little extra profit?
Yes, it does. It serves more to confirm how stupid the chancellor is banghead

We're having to increase our prices temporarily as our customers pay by Standing Order.

Edited by HRG on Monday 15th December 12:04

TonyHetherington

32,091 posts

279 months

Monday 15th December 2008
quotequote all
Jimboka said:
Why isn't everything in the pound store now 97.5P(ish)?
hehe

10 Pence Short

32,880 posts

246 months

Monday 15th December 2008
quotequote all
Well who'd have thought it? Those retailers and parking companies are trying to make money! The b&stards!

Mst007

472 posts

251 months

Monday 15th December 2008
quotequote all
I feel sorry for the Pound shops personally.

Busamav

2,954 posts

237 months

Monday 15th December 2008
quotequote all
I put the wifes S2000 in for a sevice last week , based on a quote they gave me mid November.

When i was presented with the bill i mentioned that there should be reduction due to the governments kindness , or were they just simply pocketing the diffence biggrinwink

He fumbled for a while then knocked the entire vat amount from the bill and apologised . Well done Newbury Honda smile