7dayshop - now with VAT

Discussion in 'Digital Photography' started by Matthew, Jul 30, 2004.

  1. Matthew

    Matthew Guest

    As of 6pm this afternoon it appears that 7dayshop has faced up to the
    realities of customs & excise, and they are charging VAT on all items
    above £17.99.... It seems that they were ripping off their customers
    at the expense of the taxman, as the canon a75 I ordered on Sunday
    (which incidentally has not yet arrived, so I don't know whether I
    will be hit with a nasty surprise (if so can I refuse the delivery,
    cancel the order and buy it at the new price?)) is now £152.75, which
    is only 11.5% more than the price I paid, which suggests that either
    they were making a lot of money before, or they are cutting their
    margins even further than ever before to stay competitive in the
    legitimate world of taxed goods.

    Anyway, goods priced around £18 are very keenly priced now those over
    this price are likely to be as cheap elsewhere.
     
    Matthew, Jul 30, 2004
    #1
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  2. Matthew

    ejb Guest

    "Matthew" <wrote>

    As of 6pm this afternoon it appears that 7dayshop has faced up to the
    > realities of customs & excise, and they are charging VAT on all items
    > above £17.99.... It seems that they were ripping off their customers
    > at the expense of the taxman,


    (snip)

    How were they "ripping off their customers" ?
     
    ejb, Jul 30, 2004
    #2
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  3. Matthew

    Your-nice Guest

    I just got a 75 to 300 lens from them £119 but had to pay £20 to get it from
    the post office customs charge, and the post office charged £4 so it really
    cost £143.

    "Matthew" <> wrote in message
    news:...
    > As of 6pm this afternoon it appears that 7dayshop has faced up to the
    > realities of customs & excise, and they are charging VAT on all items
    > above £17.99.... It seems that they were ripping off their customers
    > at the expense of the taxman, as the canon a75 I ordered on Sunday
    > (which incidentally has not yet arrived, so I don't know whether I
    > will be hit with a nasty surprise (if so can I refuse the delivery,
    > cancel the order and buy it at the new price?)) is now £152.75, which
    > is only 11.5% more than the price I paid, which suggests that either
    > they were making a lot of money before, or they are cutting their
    > margins even further than ever before to stay competitive in the
    > legitimate world of taxed goods.
    >
    > Anyway, goods priced around £18 are very keenly priced now those over
    > this price are likely to be as cheap elsewhere.
     
    Your-nice, Jul 30, 2004
    #3
  4. Matthew

    Matthew Guest

    "ejb" <> wrote in message news:<ceea5u$n0v$>...
    > "Matthew" <wrote>
    >
    > As of 6pm this afternoon it appears that 7dayshop has faced up to the
    > > realities of customs & excise, and they are charging VAT on all items
    > > above £17.99.... It seems that they were ripping off their customers
    > > at the expense of the taxman,

    >
    > (snip)
    >
    > How were they "ripping off their customers" ?


    By not passing on the full 17.5% VAT saving before. Like those duty
    free shops in airports - the lack of tax makes the product look
    incredibly cheap, but in fact they are making £3 or £4 per item per
    more profit than other shops would.
     
    Matthew, Jul 31, 2004
    #4
  5. Matthew

    A.Lee Guest

    On Sat, 31 Jul 2004 00:45:50 -0700, Matthew wrote:

    > "ejb" <> wrote in message news:<ceea5u$n0v$>...
    >> "Matthew" <wrote>
    >>
    >> As of 6pm this afternoon it appears that 7dayshop has faced up to the
    >> > realities of customs & excise, and they are charging VAT on all items
    >> > above £17.99.... It seems that they were ripping off their customers
    >> > at the expense of the taxman,


    >> How were they "ripping off their customers" ?

    >
    > By not passing on the full 17.5% VAT saving before. Like those duty
    > free shops in airports - the lack of tax makes the product look
    > incredibly cheap, but in fact they are making £3 or £4 per item per
    > more profit than other shops would.


    Thats comical.They sell stuff cheaper than anywhere else.Now you moan as
    you think they should sell it even cheaper.
    They are ripping off no-one - not even the taxman.
    Alan.

    --
    To reply by e-mail, change the ' + ' to 'plus'.
    http://www.dvatc.co.uk - Off-road cycling in the North Midlands.
     
    A.Lee, Jul 31, 2004
    #5
  6. Matthew

    Lostin1999 Guest

    "Matthew" <> wrote in message
    news:...
    > "ejb" <> wrote in message

    news:<ceea5u$n0v$>...
    > > "Matthew" <wrote>
    > >
    > > As of 6pm this afternoon it appears that 7dayshop has faced up to the
    > > > realities of customs & excise, and they are charging VAT on all items
    > > > above £17.99.... It seems that they were ripping off their customers
    > > > at the expense of the taxman,

    > >
    > > (snip)
    > >
    > > How were they "ripping off their customers" ?

    >
    > By not passing on the full 17.5% VAT saving before. Like those duty
    > free shops in airports - the lack of tax makes the product look
    > incredibly cheap, but in fact they are making £3 or £4 per item per
    > more profit than other shops would.


    that's just good business practice.. hardly ripping you off....

    Lost
     
    Lostin1999, Jul 31, 2004
    #6
  7. In article <>, Lostin1999
    <> writes
    >
    >"Matthew" <> wrote in message
    >news:...
    >> "ejb" <> wrote in message

    >news:<ceea5u$n0v$>...
    >> > "Matthew" <wrote>
    >> >
    >> > As of 6pm this afternoon it appears that 7dayshop has faced up to the
    >> > > realities of customs & excise, and they are charging VAT on all items
    >> > > above £17.99.... It seems that they were ripping off their customers
    >> > > at the expense of the taxman,
    >> >
    >> > (snip)
    >> >
    >> > How were they "ripping off their customers" ?

    >>
    >> By not passing on the full 17.5% VAT saving before. Like those duty
    >> free shops in airports - the lack of tax makes the product look
    >> incredibly cheap, but in fact they are making £3 or £4 per item per
    >> more profit than other shops would.

    >
    >that's just good business practice.. hardly ripping you off....
    >

    Selling things at a price lower than UK high street but by less than the
    VAT and customs duty is good business. Implying in adverts that the
    goods are "tax free" when you have in effect taken half the tax saving
    into your own pocket is however rather more dubious. Margins in UK
    retailing are already disgustingly large compared with the USA.

    BTW, does anyone know on what legal basis this change of practice is
    founded? I didn't think the Gauleiters of Brussels had any power in
    Guernsey.
    --
    David Littlewood
     
    David Littlewood, Jul 31, 2004
    #7
  8. Matthew

    ejb Guest

    "Matthew" <> wrote >

    By not passing on the full 17.5% VAT saving before. Like those duty
    > free shops in airports - the lack of tax makes the product look
    > incredibly cheap, but in fact they are making £3 or £4 per item per
    > more profit than other shops would.


    snip

    I wasn't aware that they were forcing people to buy from them.
    I choose to purchase from them because they have the goods that I want at a
    price that I'm prepared to pay.

    Presumably that's why you placed an order with them in the first place.

    I would imagine that most people would be aware of the VAT implications when
    purchasing from a C.I based company.

    What I find annoying is certain retail UK companies advertising VAT
    exclusive prices in camera mags.
    Such companies do not get my business.
     
    ejb, Jul 31, 2004
    #8
  9. Matthew

    Stevie Boy Guest


    > >>
    > >> How were they "ripping off their customers" ?

    > >
    > > By not passing on the full 17.5% VAT saving before.

    >
    > Well go elsewhere then. Any business is free to sell their products with
    > whatever profit margin they like.
    >


    I think thats called price fixing. Theres a law against that.

    Steve
     
    Stevie Boy, Jul 31, 2004
    #9
  10. Matthew

    scott Guest

    "Matthew" <> wrote in message
    news:
    > "ejb" <> wrote in message
    > news:<ceea5u$n0v$>...
    >> "Matthew" <wrote>
    >>
    >> As of 6pm this afternoon it appears that 7dayshop has faced up to
    >> the
    >>> realities of customs & excise, and they are charging VAT on all
    >>> items above £17.99.... It seems that they were ripping off their
    >>> customers at the expense of the taxman,

    >>
    >> (snip)
    >>
    >> How were they "ripping off their customers" ?

    >
    > By not passing on the full 17.5% VAT saving before.


    Well go elsewhere then. Any business is free to sell their products with
    whatever profit margin they like.

    > Like those duty
    > free shops in airports - the lack of tax makes the product look
    > incredibly cheap, but in fact they are making £3 or £4 per item per
    > more profit than other shops would.


    How do you know they are making more profit than other shops? I suspect it
    mighe be more expensive to run a shop in an airport than in the highstreet
    (longer opening hours, more expensive rent?)

    And they just set the price (or try to) and what will make them the most
    profit. It's what every business does - and you're a bit stupid if you
    don't.
     
    scott, Jul 31, 2004
    #10
  11. Matthew

    Nick G Guest

    "Stevie Boy" <> wrote in message
    news:...

    <Snipped>

    > > Well go elsewhere then. Any business is free to sell their products

    with
    > > whatever profit margin they like.
    > >

    >
    > I think thats called price fixing. Theres a law against that.


    No it's not. Price Fixing is when a number of businesses get together to fix
    a price at which they will all sell an item, thereby depriving the consumer
    of any choice.


    --
    -Nick G

    ** Vidi Vici Veni ***
     
    Nick G, Jul 31, 2004
    #11
  12. Matthew

    Lordy Guest

    > > Well go elsewhere then. Any business is free to sell their
    > > products with whatever profit margin they like.

    >
    > I think thats called price fixing.


    No it isn't.

    HTH


    --
    Lordy
     
    Lordy, Jul 31, 2004
    #12
  13. Matthew

    Lordy Guest

    > > > It seems that they were ripping off their customers
    > > > at the expense of the taxman,

    > >
    > > (snip)
    > >
    > > How were they "ripping off their customers" ?

    >
    > By not passing on the full 17.5% VAT saving before. Like those
    > duty free shops in airports - the lack of tax makes the product
    > look incredibly cheap, but in fact they are making £3 or £4 per
    > item per more profit than other shops would.


    Well, that one wins the award for most stupid post of the day :)


    --
    Lordy
     
    Lordy, Jul 31, 2004
    #13
  14. In article <cefrn2$5sm$>, ejb
    <> writes
    >
    >"Matthew" <> wrote >
    >
    >By not passing on the full 17.5% VAT saving before. Like those duty
    >> free shops in airports - the lack of tax makes the product look
    >> incredibly cheap, but in fact they are making £3 or £4 per item per
    >> more profit than other shops would.

    >
    >snip
    >
    >I wasn't aware that they were forcing people to buy from them.
    >I choose to purchase from them because they have the goods that I want at a
    >price that I'm prepared to pay.
    >
    >Presumably that's why you placed an order with them in the first place.
    >
    >I would imagine that most people would be aware of the VAT implications when
    >purchasing from a C.I based company.
    >
    >What I find annoying is certain retail UK companies advertising VAT
    >exclusive prices in camera mags.
    >Such companies do not get my business.
    >
    >

    I agree - they don't get mine either. It is also in breach of OFT
    guidelines to advertise ex-VAT prices in consumer magazines -
    non-statutory, but it makes you wonder why the magazines accept adverts
    on this basis.

    It is also beginning to annoy me that some eBay sellers are doing this.
    I don't bid on their items, as a matter of principle. I even saw one
    that said it was adding a 20% buyers' premium to the final bid price. I
    am surprised this is not in breach of eBay rules. Needless to say, they
    didn't get a bid from me either; hell will freeze over before I bid on
    such conditions.

    BTW, English contract law has effect that if a seller does not specify
    in course of reaching a contract that a price is "ex-VAT" or "subject to
    VAT" then the price is deemed to be VAT inclusive, and he would be in
    breach of contract if he then tried to add it later; he could be forced
    to sell at the contract price, or sued for damages if he ratted on the
    deal.
    --
    David Littlewood
     
    David Littlewood, Jul 31, 2004
    #14
  15. In article <>, Stevie Boy
    <> writes
    >
    >> >>
    >> >> How were they "ripping off their customers" ?
    >> >
    >> > By not passing on the full 17.5% VAT saving before.

    >>
    >> Well go elsewhere then. Any business is free to sell their products with
    >> whatever profit margin they like.
    >>

    >
    >I think thats called price fixing. Theres a law against that.
    >
    >Steve
    >
    >

    Rubbish.
    --
    David Littlewood
     
    David Littlewood, Jul 31, 2004
    #15
  16. Matthew

    Trev Guest

    "David Littlewood" <> wrote in message
    news:...
    > In article <>, Lostin1999
    > <> writes
    > >
    > >"Matthew" <> wrote in message
    > >news:...
    > >> "ejb" <> wrote in message

    > >news:<ceea5u$n0v$>...
    > >> > "Matthew" <wrote>
    > >> >
    > >> > As of 6pm this afternoon it appears that 7dayshop has faced up to the
    > >> > > realities of customs & excise, and they are charging VAT on all

    items
    > >> > > above £17.99.... It seems that they were ripping off their

    customers
    > >> > > at the expense of the taxman,
    > >> >
    > >> > (snip)
    > >> >
    > >> > How were they "ripping off their customers" ?
    > >>
    > >> By not passing on the full 17.5% VAT saving before. Like those duty
    > >> free shops in airports - the lack of tax makes the product look
    > >> incredibly cheap, but in fact they are making £3 or £4 per item per
    > >> more profit than other shops would.

    > >
    > >that's just good business practice.. hardly ripping you off....
    > >

    > Selling things at a price lower than UK high street but by less than the
    > VAT and customs duty is good business. Implying in adverts that the
    > goods are "tax free" when you have in effect taken half the tax saving
    > into your own pocket is however rather more dubious. Margins in UK
    > retailing are already disgustingly large compared with the USA.
    >
    > BTW, does anyone know on what legal basis this change of practice is
    > founded? I didn't think the Gauleiters of Brussels had any power in
    > Guernsey.
    > --
    > David Littlewood


    The stuff I have looked at or bought from them has been Much lower then High
    st prices Before vat. How can they be making money out of vat if they dont
    charge it.
     
    Trev, Jul 31, 2004
    #16
  17. Matthew

    Stevie Boy Guest


    > No it's not. Price Fixing is when a number of businesses get together to

    fix
    > a price at which they will all sell an item, thereby depriving the

    consumer
    > of any choice.
    >
    >
    > --


    Well I disagree. I so no reason why a company has to be in conjunction with
    others to price fix.
    There is an upper price index for goods controlled by the RRP and generally
    a lower price index controlled by what the manufacturer will allow it to be
    sold, which is generally controlled by the buying in price and your profit
    margin.

    If a company decides not to be competitive within the market place and
    therefore sells their goods at a higher than competitive price in order to
    maximise profits then that is price fixing. Likewise if they decide to
    undercut EVERY soul in the market in order to maximise sales then that is
    price fixing.

    Steve
     
    Stevie Boy, Jul 31, 2004
    #17
  18. Matthew

    ejb Guest

    "Stevie Boy" wrote

    If a company decides not to be competitive within the market place and
    > therefore sells their goods at a higher than competitive price in order

    to
    > maximise profits then that is price fixing. Likewise if they decide to
    > undercut EVERY soul in the market in order to maximise sales then that is

    price fixing.
    >


    The generally accepted meaning of "price fixing" in the market sense is when
    manufacturers/distributors/retailers agree a price for a product that none
    of them will undercut.

    Another term for it is a "cartel".

    If a retailer decides to sell the item(s) at a lower price,they may find
    that they are unable to obtain further supplies of the said items.
    The most likely reason being "our order books are full".
     
    ejb, Jul 31, 2004
    #18
  19. "Stevie Boy" <> wrote in message
    news:...
    >
    > > No it's not. Price Fixing is when a number of businesses get together to

    > fix
    > > a price at which they will all sell an item, thereby depriving the

    > consumer
    > > of any choice.
    > >
    > >
    > > --

    >
    > Well I disagree. I so no reason why a company has to be in conjunction

    with
    > others to price fix.
    > There is an upper price index for goods controlled by the RRP and

    generally
    > a lower price index controlled by what the manufacturer will allow it to

    be
    > sold, which is generally controlled by the buying in price and your profit
    > margin.
    >
    > If a company decides not to be competitive within the market place and
    > therefore sells their goods at a higher than competitive price in order

    to
    > maximise profits then that is price fixing. Likewise if they decide to
    > undercut EVERY soul in the market in order to maximise sales then that is
    > price fixing.
    >
    > Steve
    >
    >


    I can see where you are coming from, based on the words, but there is an
    accepted term called "price fixing"
    If you specify define: price fixing to Google, you will get to here after a
    couple of clicks...

    http://www.google.co.uk/search?hl=en&lr=&ie=UTF-8&oi=defmore&q=define:price fixing

    It think the term for what you describe is "pricing yourself out of the
    market"

    Regards
    Dennis
     
    Dennis Bradley, Jul 31, 2004
    #19
  20. Matthew

    Paul F Guest

    "Lordy" <> wrote in message
    news:...
    > > > > It seems that they were ripping off their customers
    > > > > at the expense of the taxman,
    > > >
    > > > (snip)
    > > >
    > > > How were they "ripping off their customers" ?

    > >
    > > By not passing on the full 17.5% VAT saving before. Like those
    > > duty free shops in airports - the lack of tax makes the product
    > > look incredibly cheap, but in fact they are making £3 or £4 per
    > > item per more profit than other shops would.

    >
    > Well, that one wins the award for most stupid post of the day :)
    >
    >
    > --
    > Lordy


    Really? What a sheltered e-life you must lead! Try looking at groups in
    which the Iraq invasion and occupation is being 'justified'.

    Could we have some tolerance on this group of opinions with which we might
    not agree? I think its a bit pathetic the way you and others have slammed
    into this bloke because he happens to differ from your opinions on
    acceptable business practices.

    Yours respectfully

    Paul F
     
    Paul F, Jul 31, 2004
    #20
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