Why?

Starovich · 30 March 2011, 12:57

Why do people give a price for a service as ex VAT;
There is no chance they wont change me the VAT
I am not a tradesman so I cant claim it back.
In all other walks of life you get the price as a total to be paid, you dont pick up a loaf of bread marked as 80p then be asked for £1 at the till.

Its just a way to make it seem a lower cost WE ARE NOT STUPID, just quote the price you are going to expect me to pay!

In addition, anyone who cant tell me prices of the consumables used in the service makes me wonder why?

From what I understand (and I'm not a mechanic) you always change the filters, plugs, GB oil and impellor every year. So why not just either have them costed as a unit, and deduct any parts not needed, money off is always better then money added, or just make the service price include the average cost of the parts you need.

I just had 2 conversations with 2 companies for a service and other work and one (RibShop) gave a clear honest pricing for the work I needed and one (I wont say who) was unable and unwilling to give a price, the closest I got was "between £115 and £200".

Well guess who I am going to give the work too!

Leapy · 30 March 2011, 13:15

Quote:

Originally Posted by Starovich

80p then be asked for £1 at the till.

Sh!t. When did VAT go up to 25%

ashbypower · 30 March 2011, 13:26

Ah But Food is zero rated for VAT, so I guess that was inflation !!

Leapy · 30 March 2011, 13:28

Quote:

Originally Posted by ashbypower

Ah But Food is zero rated for VAT, so I guess that was inflation !!

Good point. There's more to this than meets the eye

willk · 30 March 2011, 13:32

Quote:

Originally Posted by ashbypower

Ah But Food is zero rated for VAT, so I guess that was inflation !!

You can slice it any way you like but the bread had risen. Dough!

HUMBER P4VWL · 30 March 2011, 13:48

like it willk!

Leapy · 30 March 2011, 13:55

Quote:

Originally Posted by willk

You can slice it any way you like but the bread had risen. Dough!

You're definitely not spending enough time on your boat

Starovich · 30 March 2011, 13:58

Quote:

Originally Posted by ashbypower

Ah But Food is zero rated for VAT, so I guess that was inflation !!

I knew some one was going to pick holes in my example, didnt think of food as 0 rated

Leapy · 30 March 2011, 14:06

Quote:

Originally Posted by Starovich

I knew some one was going to pick holes in my example, didnt think of food as 0 rated

Nevertheless, you're right...I don't understand why some folks quote ex-VAT prices where goods are clearly liable for VAT and the VAT would not be normally reclaimable. The sceptic in me thinks it's a (misplaced) marketing ploy

willk · 30 March 2011, 14:14

There is a chandler on ebay with a full shop of nice bits at even prices. You fill your basket and calculate postage. Vat is added to the final total!

It's a swizz!

Nos4r2 · 30 March 2011, 16:03

Quote:

Originally Posted by willk

There is a chandler on ebay with a full shop of nice bits at even prices. You fill your basket and calculate postage. Vat is added to the final total!

It's a swizz!

Yep... I got as far as the basket and dumped it.

Doug Stormforce · 31 March 2011, 23:48

Quote:

Originally Posted by Starovich

Why do people give a price for a service as ex VAT;

I would guess they want to give you the opportunity to ask if there is a particular payment method that gets you a better price. Either that or they want you to know that the rip of price is due to vat not them.

Bigmuz7 · 01 April 2011, 06:42

I quote all my prices ex VAT because we deal with so many commercial customers.. its usual to quote something without mentioning VAT .. I see it the other way about , in that, for us its a PITA having to remember to quote it for non commercial punters TBH .. Its no con trick its just that the bulk of our trade is with other traders or people in the trade, who all know VAT will be added, its not really about whether 'we know' if they can reclaim it or if they cant.

Most private punters I deal with expect VAT to be added, they all hate it, but its a fact of life.

Leapy · 01 April 2011, 06:49

Quote:

Originally Posted by Bigmuz7

I quote all my prices ex VAT because we deal with so many commercial customers.. its usual to quote something without mentioning VAT .. I see it the other way about , in that, for us its a PITA having to remember to quote it for non commercial punters TBH .. Its no con trick its just that the bulk of our trade is with other traders or people in the trade, who all know VAT will be added, its not really about whether 'we know' if they can reclaim it or if they cant.

Most private punters I deal with expect VAT to be added, they all hate it, but its a fact of life.

Got no problem with that

My issue is as I said before: don't understand why some folks quote ex-VAT prices where goods are clearly liable for VAT and the VAT would not be normally reclaimable. The sceptic in me thinks it's a (misplaced) marketing ploy

Starovich · 01 April 2011, 08:01

Bigmuz7:
If your business deal with trade as 90% of the business you deal with then i can understand it.
How many boat related businesses can claim this?

Doug
Vat is due to the government coffers regardless of method of payment, unless of course the business is in the habit of "cash in hand" and defraud the tax man?

If the prices they quote are so high they to need to try and make it seem cheaper they they are too pricey.

Take Petrol for example we are not stupid, and all know the majority of the fuel price is tax and vat, do you see petrol stations showing the prices at the pump, ex vat and ex tax, only to then add it back in at the till?

I, as a consumer want to be able to phone around for quotes and get the price i am going to end up paying, if the business makes that hard or complicated by not quoting the full price for the job including all bells and whistles, as has been said by others here, ill go else elsewhere.

Steve_B · 01 April 2011, 08:38

I fully agree with the sentiment of the first post, caught me out only yesterday.

I ordered a part for the car and got phone call to say it was in. As it was over in Sway and a friend lives in Lymington, he said he would pick it up for me. I was told the price was £26.97 so I gave my friend £30 cash.

When he saw me the next day gave me the part and told me he had to pay over £35! Luckily he had the extra cash, but it made me feel ackward that I had not given him enough. No one pays for goods without VAT added, even if VAT registered, you pay and then claim back.

I would go over and have a rant, but broke my ankle last night! Bugger

Steve

boristhebold · 01 April 2011, 08:47

Quote:

Originally Posted by Starovich

Why do people give a price for a service as ex VAT;
There is no chance they wont change me the VAT
I am not a tradesman so I cant claim it back.
In all other walks of life you get the price as a total to be paid, you dont pick up a loaf of bread marked as 80p then be asked for £1 at the till.

Its just a way to make it seem a lower cost WE ARE NOT STUPID, just quote the price you are going to expect me to pay!

In addition, anyone who cant tell me prices of the consumables used in the service makes me wonder why?

From what I understand (and I'm not a mechanic) you always change the filters, plugs, GB oil and impellor every year. So why not just either have them costed as a unit, and deduct any parts not needed, money off is always better then money added, or just make the service price include the average cost of the parts you need.

I just had 2 conversations with 2 companies for a service and other work and one (RibShop) gave a clear honest pricing for the work I needed and one (I wont say who) was unable and unwilling to give a price, the closest I got was "between £115 and £200".

Well guess who I am going to give the work too!

I had exactly the same experience a few weeks ago, I had quotes from 4 companies who could not seem to make their minds up on what the cost would be and 1 from Ribshop who quoted exactly what the price would be and incidently was competitive, I chose Ribshop who did a great Job in my opinion.