Price rises above and beyond vat!

jase_31

Have others noticed that a number of shops have used the increase in vat to bring in price rises above and beyond vat.

The increase should be just over 2.1%, yet locally we have price increase of between 5 and 20% (i.e sandwich shop up 20%, fish and chips extra 20p - 16%, pub extra 15p pint etc)

caz2703

It's just like the government who bury bad news on a day of major news. The retailers have done poorly this year what with the recession and the weather so now they figure they'll claw back some money by hiding price hikes in the VAT rise.

To be honest I'd have been surprised if they hadn't tried to do this!

paddyrg

Prices should never rise!

It's the end of the sales which will account for some normalisation, and a new year, and a tough time for retailers on the high street - perhaps it's a combination of things which means price rises which were due to happen anyway happened to happen at the same time as the VAT increase (happenstance?!)

peter_the_piper

Sainsburys yesterday, dog food last week £1.01, this week £1.05 and increase of around 1.5p as well as vat. In itself not a lot but if they have done this spread over the range of products proportionately its a lot.

deanos

Our daughters ballet class gone from £26 to £30 a term they said because of VAT that's why its gone up

dane-katie

Argos prices have gone up too, tbh i didnt think places would change prices from 99p to £1 odd but guess i was being nieve

Jo_Mc_2

I bought woodshavings for in the guinea pig cage yesterday from Wilkinson. I paid £1.49 before New Year and yesterday it was priced at £1.59 - the VAT increase should've just meant an increase to £1.53.

caz2703

dane-katie wrote: »

Argos prices have gone up too, tbh i didnt think places would change prices from 99p to £1 odd but guess i was being nieve

I've been wondering if Poundland will change to the PoundAndTuppenceLand since the VAT rise?

On a serious note I did see an advert on TV for some competition and the price for a call was £1.03. Considering how much money these companies make I thought they'd absorb the VAT rate and not add it on.

nomoneytoday

peter_the_piper wrote: »

Sainsburys yesterday, dog food last week £1.01, this week £1.05 and increase of around 1.5p as well as vat. In itself not a lot but if they have done this spread over the range of products proportionately its a lot.

Probably because their delivery costs have also gone up. Higher fuel and wage inflation on top of the VAT..

Viper_7

Every item will not go up by 2.5%! imagine the cost in changing every single item!

Also there are the magic figures of 49p 99p, £1.99, £2.99 etc etc

Merchants will want to keep these magic figures. A 49p chocolate bar is more attractive than a 51p one.

So many items will stay as they are - hell some will even drop, but many will go up much more to account for those they do not change, but give it 6mths if not less and everything will be back to the £n.99 or whatever.

However yes, it's expected that merchants will increase prices overall above VAT - but that's because their own wholesale prices have gone up - due to some extent in the increase in transportation.

charlie792

dane-katie wrote: »

Argos prices have gone up too, tbh i didnt think places would change prices from 99p to £1 odd but guess i was being nieve

I agree about Argos - Was looking at something in their latest book and it was £9.99 - however they are now charging £19.99 instore! Can't blame that on the VAT rise surely?