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ticket prices and VAT reduction


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So this could be said of all business who's goods have seen a reduction in VAT. ... sorry but if the government reduces VAT then the price of goods should be reduce accordingly. It's amazing after the budget how quickly some businesses increase prices even though technically the increases are months away.

 

Goods prices are now 2.5 percent cheaper than they were at the end of November ..... except a many business have choosen to increase the price of their goods by 2.5 percentage by keeping the price of goods the same before the tax decrease.

As oafc0000 says all should do it ......... hardly going to kill Latics to stick a price sticker over some signs is it now!

 

Add up you daily costs .... that 2.5 percent businesses are deciding to increase their goods by soon adds up.

 

Hmm. not quite that straightforward though I'm afraid Mark.

 

"Goods prices are now 2.5 percent cheaper" not correct as the price of goods is the same, it is the tax that the government takes that has been decreased.

 

"business have choosen to increase the price of their goods by 2.5 percentage" not correct, the price is the same, but their profit margins have increased by 2.5 percent

 

Also, there is an argument that companies who do not pass on the reduction of VAT rate in their prices will still help to stimulate the economy as the increased profit margins helps them to stave off things like redundancies, additional borrowing or even liquidation. The people who keep their jobs will spend more money.

 

It is one of the interesting things about Economics - there are often two equally valid views applicable. (you Red Scum supporting arse :grin: )

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Hmm. not quite that straightforward though I'm afraid Mark.

 

"Goods prices are now 2.5 percent cheaper" not correct as the price of goods is the same, it is the tax that the government takes that has been decreased.

 

The retail cost is cheaper to the consumer....

 

"business have choosen to increase the price of their goods by 2.5 percentage" not correct, the price is the same, but their profit margins have increased by 2.5 percent

 

Also, there is an argument that companies who do not pass on the reduction of VAT rate in their prices will still help to stimulate the economy as the increased profit margins helps them to stave off things like redundancies, additional borrowing or even liquidation. The people who keep their jobs will spend more money.

 

Im telling you now... That means there dividend payments will be 2.5 percent bigger for the majority of companies...

Edited by oafc0000
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Hmm. not quite that straightforward though I'm afraid Mark.

 

"Goods prices are now 2.5 percent cheaper" not correct as the price of goods is the same, it is the tax that the government takes that has been decreased.

 

"business have choosen to increase the price of their goods by 2.5 percentage" not correct, the price is the same, but their profit margins have increased by 2.5 percent

 

Also, there is an argument that companies who do not pass on the reduction of VAT rate in their prices will still help to stimulate the economy as the increased profit margins helps them to stave off things like redundancies, additional borrowing or even liquidation. The people who keep their jobs will spend more money.

 

It is one of the interesting things about Economics - there are often two equally valid views applicable. (you Red Scum supporting arse :grin: )

 

 

Businesses reduce their prices, consumers will have more to spend and money still ends up with businesses anyway / economy grows ....... then the facing the fact raw materials have be ever increasing :blink:

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The retail cost is cheaper to the consumer....

Im telling you now... That means there dividend payments will be 2.5 percent bigger for the majority of companies...

 

I can see that you don't follow (and I am not being condescending here).

 

The government has decreased the amount of Tax we pay on the money we spend. It has nothing to do with costs, it is a tax related matter. Everything costs the same as it did before the recent change.

 

As far as dividends go, these are based upon Net Profit. Net profit is the difference between what they pay and what they earn less the costs they incurr. Therefore, as all three of these could be affected either for the good or bad as far as companies are concerned, you cannot say that the majority of companies will have a 2.5 percent increase in anything, let alone dividends.

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Businesses reduce their prices, consumers will have more to spend and money still ends up with businesses anyway / economy grows .......is clearly my view.

 

Or businesses reduce their prices, continue to struggle to make profits, go bust and their ex-employees cost the tax payer (AKA oafc000 :grin: ) a fortune.

 

The mechanisms of a free market economy and the effects changes to these mechanisms have on corporate and public confidence in the growth and stability of the economy are very complex. Afterall, what has REALLY changed to have caused such a devastating global economic downturn? US banks over lending to sub prime (bad credit risk) customers in the US?

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Businesses reduce their prices, consumers will have more to spend and money still ends up with businesses anyway / economy grows .......is clearly my view.

If it worked that way then businesses would be cutting prices anyway without the need for Darling to tell them so. Some businesses would see no benefit whatsoever, some would benefit greatly. Why on Earth would each business not decide what was in it's individual interest? That's how the world turns, and it's why we live in astonishing wealth, health, longevity and safety compared to the rest of the world.

 

Oh, and lots of businesses have been slashing prices anyway

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Businesses reduce their prices, consumers will have more to spend and money still ends up with businesses anyway / economy grows ....... then the facing the fact raw materials have be ever increasing :blink:

 

Oh, sneaky edit of post there Mark.

 

Saying that it is a fact that raw materials have been ever increasing is factually incorrect. Some raw materials have increased in price and some have decreased - it depends on what raw material you are talking about.

 

Again, this isn't about cost, it is about tax

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Oh, sneaky edit of post there Mark.

 

Saying that it is a fact that raw materials have been ever increasing is factually incorrect. Some raw materials have increased in price and some have decreased - it depends on what raw material you are talking about.

 

Again, this isn't about cost, it is about tax

 

 

.... now I can see why I didn't exactly set the world alight with my Economics A level results :blush:

 

 

Anyhow whats this got to do with Latics spending 30mins sticking new prices on the turnstiles and three days training teaching gate operators how to give the correct change from 20quid notes :omg:

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.... now I can see why I didn't exactly set the world alight with my Economics A level results :blush:

Anyhow whats this got to do with Latics spending 30mins sticking new prices on the turnstiles and three days training teaching gate operators how to give the correct change from 20quid notes :omg:

Every company sets their prices according to the market situation, VAT is but one factor in this. You might imagine that it would be better if the government sent thousands of officials round with clipboards marking goods down, but it wouldn't...

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.... now I can see why I didn't exactly set the world alight with my Economics A level results :blush:

Anyhow whats this got to do with Latics spending 30mins sticking new prices on the turnstiles and three days training teaching gate operators how to give the correct change from 20quid notes :omg:

 

OK, so back to Latics.

 

I suppose they have 2 options.

 

1, Pass on the 2.5% VAT reduction on to supporters and reduce admission prices

2, Don't

 

:grin:

 

If they decide to 1 - we all save less than a quid a match and save our money up and either A, spend it in the club shop B, go to more away matches (maybe even Sheff Weds) and give our extra disposable income to our competitors; or C, spend it on something totally Latics unrelated/put it in a sock and hide it under the bed. Also, there is a potential extra cost in signage, increased turnstile float (more change needed on every turnstile), increased queue time for supporters (leading to less money spent on in-ground concessions), Season Ticket holder dissatisfaction....there are potentially many associated "soft" costs.

 

If they decide to 2 - they increase their gross profit from cash payment spectators by 2.5%

 

Therefore, I am happy for businesses to take the choice themselves. I am not going to lose sleep for the sake of £2.50 per £100 I spend.

 

Ideal situation? 1.25% reduction in retail prices therefore sharing the reduction equally between business and consumer.

Edited by Rick
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OK, so back to Latics.

 

I suppose they have 2 options.

 

1, Pass on the 2.5% VAT reduction on to supporters and reduce admission prices

2, Don't

 

:grin:

 

If they decide to 1 - we all save less than a quid a match and save our money up and either A, spend it in the club shop B, go to more away matches (maybe even Sheff Weds) and give our extra disposable income to our competitors; or C, spend it on something totally Latics unrelated/put it in a sock and hide it under the bed. Also, there is a potential extra cost in signage, increased turnstile float (more change needed on every turnstile), increased queue time for supporters (leading to less money spent on in-ground concessions), Season Ticket holder dissatisfaction....there are potentially many associated "soft" costs.

 

If they decide to 2 - they increase their gross profit from cash payment spectators by 2.5%

 

Therefore, I am happy for businesses to take the choice themselves. I am not going to lose sleep for the sake of £2.50 per £100 I spend.

 

Ideal situation? 1.25% reduction in retail prices therefore sharing the reduction equally between business and consumer.

 

If there were polls I'd vote for 2 and exile

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More importantly, where are Twisted Wheel playing at. I quite like them but they were pretty poor at Oasis. The sound was bad so the only one you could make out was You Stole The Sun

 

At the 101club, London, tonight alas been off work past few days with man flu ... so didn't make it tonight.

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At the 101club, London, tonight alas been off work past few days with man flu ... so didn't make it tonight.

 

I should have guessed itd be a southern venue with your name having oasis in it. Im sure you didnt miss all that much. Johnny Brownshoes was fantastic on his own at the castle but the band werent up to much.

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