Chip

Because people always want more. Its called greed.

Chip

ScoobyWeb

Correct. I am vat registered and whatever the net cost to me is, I then put my profit on top and then charge vat on the whole amount. I then have to pay that vat amount to hmrc every three months, but at the same time claim back any vat which I have paid to my suppliers.
Anyone who is charging Vat to their customers and is not registered for VAT is commiting vat fraud.

stevebt

iTrader: (8)

If you think come Tuesdays prices will only rise by 2.5% you must be living in a dream. Delivery costs and packaging suddenly become more expensive. When beer rises by 1p how often does it only rise by that? the ususal amount is about 10p

GlesgaKiss

That's generally what happens in a free market. It might seem they are being greedy, but so many big names (businesses) in this country are just getting by right now despite putting prices up... And if they didn't they would go under. Try not to think of it as these people putting prices up, but instead the metric of value - i.e., the pound - losing value relative to everything else, and so naturally prices have to "rise" to reflect that.

We could stop, as you say, but how would we do that, and why do we need to? Competing businesses naturally lower prices. Maybe think about it more in the sense that, all the while your income remains constant with the prices of everything else rising, you are actually taking a pay cut, as the equilibrium between everything else stays the same.

alcazar

iTrader: (2)

These big businesses that are "just getting by"?

Would they be the likes of Tesco, Asda, Sainsburys and Morrisons, all of who have posted increased profits?

Or the oil companies, whose profits rise to obscene new records every year?

Or BT? Or Virgin? Or any of the electricity or water companies?

They ALL seem to be doing OK

Chip

And the more these companies make the more gets pumped back into the economy.

Chip

markjmd

iTrader: (11)

You don't think a large proportion of it gets pumped into Director's salaries and bonuses, flashy new HQs, shareholder dividends, and pension funds?

Trout

iTrader: (1)

Director's who spend their money in shops, feeding cash into the economy.

Flashy new HQs being built pushing money into the construction industry, feeding money into the economy.

Shareholders, like people on Scoobynet, who spend the money, in the, oh wait, oh yes, the economy.

Pension funds. Oh they only exist because people want to save for their retirement, employing lots of people on the, yes, you guessed it, feeding money into the economy. Oh, and pension funds are one of the biggest investors in the UK economy, guess what. They feed money into the economy!

Chip

You need to look at the big picture , not just at the things you want to see and believe.

Chip

markjmd

iTrader: (11)

EFA, two sides to every story

Chip

And what is wrong with that. I have a share portfolio which, yes, gives me a nice dividend every year. A dividend I use to spend on holidays and little luxuries. What is so wrong with that. I could have, like so many, pissed my money up against the wall but I chose not to.

Do you not pay into a pension fund then for your retirement , if not , why not.

Chip

GlesgaKiss

You make the mistake of assuming these companies are here to serve you. On the other hand, think where we would be without oil companies - presumably without oil. They provide oil because others will trade their wealth for it. If there are no buyers then there are no 'greedy oil companies' making any profit.

Same goes for all the other companies you mentioned. And as Trout says, the money is circulated through the economy anyway. All savings are used for a purpose.

lordharding

iTrader: (1)

All retail prices will go more then 2.5 probably nearer 5%
due to transport etc and of course the round pound pricing
Tv and sofas will always be 299-399-499 rather then £408-512 etc
So shops will have to tweak prices eg chairs up £20 cables and aerials up £2-3 to balance the books

A jacket at 34.99 will creep up to £39.99 rather then 36.12 or whatever so some retailers are going to be hit badly the strong players like dfs , primark and tesco will survive people will look closer at eBay / online retailers for keener prices

Maybe everyone will turn to cheap booze and wear they clothing untill it's threadbare
But whatever happens prices are defently going up a lot

jonc

Exactly

alcazar

iTrader: (2)

Of course I don't. THEY make the mistake in thinking that they could exist without me. (Well, not JUST me, but customers).

Agreed, but firstly, is there any need for them to keep making RECORD profits when the people they are profiting FROM are in hard times? And secondly, no-one expects them to make NO profit, but the OP said they were "just getting by." I disagreed. I still do.

Again, agreed, but my argument isn't about profit: Shall we? Shan't we? It's about HOW MUCH profit they are making from their customers who are suffering hard times, and the OP's suggestion that these companies are "just getting by". They aren't, they are doing fine, thanks very much.

GlesgaKiss

They don't make any mistakes though; They are obviously not going wrong if they are still making a profit. They know they can't exist without us, but since you keep buying from them they aren't going without.



Some of them are just getting by, financed by debt like the rest of the population. Obviously the ones you mentioned are some of the best, especially Tesco and the Oil & Gas companies. But again, they aren't running a charity here, their job is to make profit for shareholders who, again, put those profits to work in the economy, just the same as the people who would have made savings on the goods had they been cheaper - it's a zero sum game in that respect. They are under no obligation to give us the goods they produce/supply.

What are the other options here? To A) Get what they provide us with ourselves? Impossible. Or to B) Have the government organise it all? And since they can't run a p*ss up in a brewery there seems little chance that it would end up more efficient, and therefore cheaper, than competing businesses.

I'm not defending free market capitalism here by the way, I'm just being objective. It's a fact that these companies work on supply and demand, and the way to bring prices down is to refuse to buy at current levels. So since people are still willing to buy the way things are now, the prices must be relatively fair?

fast bloke

Yep - bottle of plonk was 5.99 in the offy last week. Now its 6.99..... erm its due to the vat...... jeez - I didn't realise they increased it by 16%. Tell you what - I'll just leave it..... welcome to your mini recession.Diesel went from 124 to 131 'due to the VAT'Happy days - only 5% on Diesel instead of 16 on wine....... you know what, I'll buy it somewhere else.

DoZZa

iTrader: (4)

I have put my prices up by 5% across all of the products we sell.

This is about right as its not as clear cut as raising the prices 2.5% to combat the VAT increase.

There are other factors to think about. Not just the increased prices of the products I buy, but also the increase in the delivery costs of the products etc.

Its all swings and round-a-bouts I'm afraid.

gallois

You are putting up prices by 5% instead of the '2.5%' (incidentally it is 2.1% increase), Have your suppliers also increased their costs by 5%? or are you simply using the VAT change to make more profit? none of my business of course, but i am just curious, as this practice if carried out across the board will ultimately lead to an inflation spiral.

zip106

I must be the only one who's reduced prices!

I've just had yet another rise in raw materials cost, the rise in VAT and the rise in fuel prices.

I'm now charging my customers just about what it costs me for materials (i.e, zero mark-up) and I've reduced my daily work rate to take into account the rises in fuel prices and VAT on my materials.

Therefore, I'm not getting paid as much but hopefully will still have work to do.

It's a bit of a $hitty situation to be in, but I'd rather have some work at a cheaper rate than none at all.

mart360

Well near me, Petrol has hit £1.30 a litre, and Diesel £1.35

motorists just get screwed

Just done a search in the area, the highest is £1.38.9 a whopping £6.30 a gallon £78 to fill a tank

Mart

DoZZa

iTrader: (4)

Yes, the majority of my suppliers have put around 5% on most lines.