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Some of you might know that the U.K government is due
to cut VAT today by 2.5% (so it will now be 15%).
So does this mean that a £18.00 box set will now cost £17.55?
Lets hope so!
I AM BOOMER!
No, if you think about it for GW would need to reprice *everything*, replacing all the stickers etc. on their products nationwide, on the website - literally, everywhere. I can't see anyone, let alone GW, doing such an exercise.
What it means is that GW will now save 2.5% of the VAT they would have paid. The effect of this VAT change is not really for us as consumers, it's to assist businesses small and large.
Whether or not it's actually a good idea is an entirely different debate
Hahaha no chance. I was thinking the same thing tbh, but the way they work it (as with many places) is they set the sellign price, and then calculate backwards, giving you a ''pre-VAT'' cost on the receipt, as well as the amount of VAT. Have a look next time you gte a receipt.
(So yeah... borderline political here but tbh the cut will make little difference.
On the news yesterday, they gave a few examples of reduces prices, such as:
''This toaster was £150, but will now be only (~) £145''!
I mean, come on!!! Who spends £150 on a toaster!? Especially duing a credit crunch. Find me the people who but these things so i can slap them
Anyway... add off-topic-ness to the list, and im done lol.)
Don't be silly mate. GW along with most other companies are likely to raise their prices to meet the loss in VAT.
My Arena Champions: Kharn'eth The Bloodcleaver and Gorzag Iron Jaw
This VAT cut means the current rate of 17.5% is going to 15%, meaning GW now only pays the IR £15 instead of £17.50. That £2.50 multiplied by the thousands of products sold a day adds up to be a fair amount, but in terms what is actually needed to keep companies solvent when faced with bankruptcy it's not actually that much. (Not saying GW is facing bankruptcy itself, just using it as an example).
So although GW could knock 2.5% off the prices for all it's products, the cost of reprinting new price labels, shipping these to every store nationwide, then hiring people to reprice everything on the website would actually cost more than what they save from the VAT cut anyway.
The kind of companies it WILL help are the smaller businesses, where a few thousand pounds VAT savings a month will be more noticable.
I doubt we will see the benefit of this at all. Even taking the logistics of reprinting the labels (which to be fair is nothing - even when talking many hundreds of thousands of labels) out of the equation GW will just claim the extra pennies as raw profit, rather than transfer it to customers. Then again, with GW being such a huge company they could do such a thing but mostly the reduction in VAT will benefit small companies most, thus potentially making it better to buy from a local model retailer rather than a huge conglomerate like GW. Goddamn disappearing paragraphs.
Last edited by The_Outsider; November 24th, 2008 at 13:24.