Argos price increases

KeighleyAlan

The new Argos catalogue came out this week, just as we want to buy a new microwave. There are amazing price increases. The most basic model "Argos Value" was £29.96 and is now £34.99. All models have increased substantially, e.g., Morphy Richards 400/7517 was £59.99, now £74.99. We expect VAT increases but this is ridiculous!

thatguy1

I expect manufacturing costs have gone up. also petrol/ diesel prices go up meaning it cost more to fill up a lorry.

moyesy

VAT went up to 20% not by 20%

geordie_joe

thatguy1 wrote: »

The price increases are the VAT

"Argos Value" was £29.96 and is now £34.99. £29.96 + 20% = £35.95 (so you are actually getting it cheaper!)
Morphy Richards 400/7517 was £59.99, now £74.99. £59.99 + 20% = £71.98 (close)

I think you are way off the mark there.

If it was £29.96 before the VAT increase you don't add 20% onto the price.

The £29.96 already includes 17.5% VAT, so you only need add another 2.5% to the vat part of the price.

I'm sure someone will come along and give the exact calculation and price.

Unfortunately, most shops are adding their own increase onto the VAT increase because most people can't work out what the new price for the vat increase should be.

Browntoa

then again they can offer "price reductions" after 28 days at the higher prices

thatguy1

geordie_joe wrote: »

I think you are way off the mark there.

If it was £29.96 before the VAT increase you don't add 20% onto the price.

The £29.96 already includes 17.5% VAT, so you only need add another 2.5% to the vat part of the price.

That's why I deleted my post before you replied!

thor

moyesy wrote: »

VAT went up to 20% not by 20%

I think the op was implying that shops were using the VAT increase to sneak in a further non-vat price rises and I agree.

geordie_joe

thatguy1 wrote: »

That's why I deleted my post before you replied!

If you'd deleted your post before I replied I wouldn't have been able to quote it.

I think what you mean is "That's why you deleted your post AFTER I replied".

thatguy1

geordie_joe wrote: »

If you'd deleted your post before I replied I wouldn't have been able to quote it.

I think what you mean is "That's why you deleted your post AFTER I replied".

No, because you must have seen the post before I deleted it, or you quoted it as I deleted it.

Sharon87

I am so glad I bought this http://www.argos.co.uk/static/Product/partNumber/4007157/Trail/searchtext%3EMORPHY+RICHARDS+MICROWAVE.htm microwave when I did! I bought it for £50 now £74.99 (is the microwave the OP was quoting?). I did want the red one at the time, but didn't have it, so got the silver one.

I guess prices everywhere for everything are going up. not just because of the VAT

on-the-count-of-three

geordie_joe wrote: »

I think you are way off the mark there.

If it was £29.96 before the VAT increase you don't add 20% onto the price.

The £29.96 already includes 17.5% VAT, so you only need add another 2.5% to the vat part of the price.

I'm sure someone will come along and give the exact calculation and price.

Unfortunately, most shops are adding their own increase onto the VAT increase because most people can't work out what the new price for the vat increase should be.

Yep. :rotfl:
The £29.96 is 100% of the full price plus the 17.5% VAT, so in effect it represents 117.5 %.

If the VAT is increased to 20% then you really need to divide by 117.5 and then multiply by 120, which should bring the new price to £30.60.

I know it's a bit of a faff, but if you just increase the total price by 2.5%, then you are also increasing the 17.5% vat by an additional 2.5% too, to a total of £30.71 in this case.
( £29.96 with 17.5% VAT included will give a base price of £25.50, so VAT is £4.46. The increase to 20% will take VAT to £5.10, so a total increase in price of 64p)

There will of course be a greater disparity the higher the price of the item. Looking at this, it has made me wonder how shops are applying the new rate. I do hope they are just not increasing the price by 2.5% overall.