Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: terrymaloy on January 10, 2011, 03:11:18 pm
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Was just wondering because of the VAT increase, have you put your prices up ?
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at a guess i'd say everyone is still charging the same prices e.g. £40 for living room, then plus whatever vat is at, so customer will see an increase of 2.1% but the cleaners price will still bee the same.
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i dont think th 2 % increase will effect prices too much but prices should but prob wont rise with the increase in fuel and other direct costs.
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I think a lot of companies will absorb the increase in some case spec with small purchases.
Same prices really for me so wont be an increase for me here.
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Charge = Price + VAT
VAT has always made getting domestic custy's harder but I doubt the increase will affect this either way.
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at a guess i'd say everyone is still charging the same prices e.g. £40 for living room, then plus whatever vat is at, so customer will see an increase of 2.1% but the cleaners price will still bee the same.
Do you give your domestic customers a price then add the VAT? ( It's 2.5% BTW not 2.1)
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£100 plus vat etc.
it's a 2.1% (or there abouts) difference btw not 2.5% ;)
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Maths isn't my strong point, can you please explain to me simply? Cheers
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The increase will see the rate rise from 17.5% to 20% - meaning an extra 2.13p added ito products that had previously been sold for £1.
http://news.sky.com/skynews/Home/Business/VAT-Increase-25-Percent-And-Rises-To-20-Percent-Chancellor-George-Osborne-Hopes-For-Budget-Deficit/Article/201101115879089?f=rss
remember you can't just add another 2.5% to your prices to work out the increase. you need to remove the vat, so take 17.5% off your current total, then add 20%. the increase should be around 2.1% (i hope)
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priced £100 vat @ 17.5% = £ 117.50p
price £100 vat @ 20% = £120
The actual difference that the customer pays is 2.1%........I think
is that what adam is basing his figures on ????
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adam answered as i was typing ;)
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While the VAT increase doesn't make a particularly significant difference in real terms given the prices in this industry, it's the psychological effect of the increase that worries me.
People will now naturally feel a sense of dread when they hear anyone mention "VAT"
I wouldn't want to be charging VAT at the moment.
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Don't get it!
120/117.5 x 100 = 102.127.
An increase of 2.1 %
But its gone up 2.5, where is the missing .4 ???
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117.5 is 97.9% of 120 - the difference is 2.1
VAT has increased by 2.5 percentage points but is in fact an increase of 14.28%
The old fraction for extracting VAT from a VAT+cost figure was 7/47. This has now changed to 1/6.
The are lies, damn lies and statistics.
My brain is now hurting.
Rog
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Is this a maths class or what!
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Or a simple explanation:-
Vat has increased by 2.5% meaning that the overall Vat INCLUSIVE price has increased by 2.1%
Dave.