Finding it hard to compete with Non VAT registered sellers

Suarez

berbastrike wrote: »

nonsense, it is destroying my business, its a 6th of the margin between buying and selling, how is this not a cost?

You are simply collecting Tax for HMRC. It doesn't affect your profit/loss.

Suarez

ILW wrote: »

What are you going on about?
The whole point is that the final consumer does not want to pay the VAT so take their business elsewhere.
OP needs to sell at a higher price than his non registered competition to make a similar margin.

Clearly not if they're turning over more than 3 times the threshold.

gb12345

Simple answer - downsize your business so that you are under the VAT threshold, then you will be on a level playing field with them.

I bet if you asked them would they prefer to be turning over <75k and not have a VAT problem or turnover 250k and suffer VAT, I know what their answer would be.

System

gb12345 wrote: »

I bet if you asked them would they prefer to be turning over <75k and not have a VAT problem or turnover 250k and suffer VAT, I know what their answer would be.

what would their answer be?

turnover is vanity, profit is sanity

gb12345

berbastrike wrote: »

what would their answer be?

turnover is vanity, profit is sanity

I would imagine that as a 3 fold increase in turnover is going to result in a significant increase in profits (there will obviously be associated costs in up-scaling) they would go for the nice increase in profit that goes with it.

ILW

gb12345 wrote: »

I would imagine that as a 3 fold increase in turnover is going to result in a significant increase in profits (there will obviously be associated costs in up-scaling) they would go for the nice increase in profit that goes with it.

I would guess you have never run a small business.

ILW

berbastrike wrote: »

what would their answer be?

turnover is vanity, profit is sanity

I would have thought you could negotiate a better buying price on the higher purchase numbers though.

System

ILW wrote: »

I would have thought you could negotiate a better buying price on the higher purchase numbers though.

If I sold one product yes, but I have a few from different suppliers

System

gb12345 wrote: »

I would imagine that as a 3 fold increase in turnover is going to result in a significant increase in profits (there will obviously be associated costs in up-scaling) they would go for the nice increase in profit that goes with it.

My net profit percentage is much lower, profit slightly higher

ILW

berbastrike wrote: »

If I sold one product yes, but I have a few from different suppliers

Sell the different products thru separate companies possibly.