Pricing Competition 2010
I think we all knew it was going to happen…
With VAT now back to 17.5% from 15%, businesses are now advertising they’re not passing this cost onto the consumer! – my guess is that it’s a way of trying to pro-long spending in the economy.
I did think that when it went back up that some businesses may rise prices above 2.5%, however this 2.5% won’t make much difference to consumers.
For every £100 you spend, it will now cost you £2.50 more today than it did yesterday, but this isn’t really a lot is it? – it may add up to a lot if you make a big one off purchase or if you had up all the tiny amounts at the end of the year.
It was funny however to see businesses trying to encourage people to spend lots of money before today’s VAT increase.. either though it wouldn’t make much of a difference to the individual.
