VAT Change - Your Feedback Needed

[rich_crid4]

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All,

Many of our competitors have already implemented a VAT change within their feeds, therefore £35 line rental is now displayed as 34.26 instead of 35.00. All networks have changed their line rentals, i.e. Orange Dolphin 35 will now cost 34.26.

We are just about to start adding this to our feed, we feel that we must do this to remain competitive, however your feedback would be appreciated.

We are trying to understand what implications, if any this change will have on your sites?

Thanks for your continued support,

Richard

[bewise]

In my opinion a 2.5% reduction in VAT is a total waste of time! Who is incentivised to buy a mobile phone deal because it is 27p cheaper per month? The costs that businesses will incur changing prices far outweighs the benefits that consumers will receive. In addition to this the rate will only go back up again in a years time, meaning further costs to businesses all across the UK. And as if that wasn't enough, Darling will charge you an extra 0.5% national insurance from 2009 for the privalage of saving 1p on a can of beans... it's absolutely farsical! Sorry rant over!

On another note I run price comparison sites so a drop of 27p per month might push you up a few places in our results, meaning more sales!

[web-strategies]

Hi Rich.

It won't affect us. Our site uses the network's pricing data where available, but always gives priority to the retailer's pricing data if it's present.

It does seem like a lot of hassle with little benefit for the retailers though.