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Thread ID: 112903	2010-09-26 21:18:00	Have GST been applied for you yet?	Nomad (952)	PC World Chat

Post ID	Timestamp	Content	User
1139760	2010-09-27 05:01:00	These prices looks stupid. From a nice round number to some odd cents Don't worry, they'll keep edging it up to a new round figure with the excuse that it's normal other price increases that are necessary because.	pctek (84)
1139761	2010-09-27 05:43:00	This is precisely why some prices won't go up, because the prices become unattractive for advertising. Supermarkets will be one example - they'll still do a promotion of xyz item at $2.99 instead of $3.06 because it looks better on paper. Retailers who sell an item for $99 will try to keep it at that price if they can, because it looks better on a flyer or TV ad than $101.20. They may shrink the product instead to compensate, but that's another story.	somebody (208)
1139762	2010-09-27 19:54:00	AFAIK Orcon is not raising its fees for GST, In fact If I read the comms right they are revamping all plans and lowering costs across the board, no word on caps yet thou.	DeSade (984)
1139763	2010-09-28 21:31:00	Its interesting to see who is doing what about the increase to GST . One company I deal with is implementing price increases from Friday and rounding it up to the nearest dollar . It is though inevitable that business with eventaully raise prices to a more even amount within twelve months sighting this as part of the "Annual" review . We discussed this at work and from what I know no one in our industry is planning to increase rates on the 1st October intead absorbing the GST increase . Being seasonal we can get away with that as November 1st is start of the summer pricing anyways . What annoyed me was my partner and a few of her coworkers have been pushing for a payrise . The response they just got from their employer was "Your net wage is increasing on October 1st with the lower tax rate" WTF!!! Last payrise her company gave was inline with minimum wage and those above minimum wage have not seen a pay increase for 4 years (before the recession) . makes you wonder really! Needless to say I think I need to increase my charge out rates for the self employed work I do either way I am going to get someone blaming GST as my reason .	coldfront (15814)
1139764	2010-09-28 21:38:00	You can use the gst increase as an excuse just like everyone else	Gobe1 (6290)
1139765	2010-09-28 22:21:00	Why should I? You missed what I said about how many businesses I know that will absorb the increase for a while or until the annual or seasonal reviews take place . From a practical point of view all my charges are inclusive gst increasing by 2 . 5% would make things awkward to say the least . For a start the weight of coinage is a good incentive not to worry about the increase . Would have to be charging out at $200 per hour to be worrying about 2 . 5 % We are not all greedy and panic about a few cents here and there . Then again look at the ripoffs being charged on mileage charges during the big fuel hikes a few years ago! How many were as quick to drop them when the price fell back?	coldfront (15814)
1139766	2010-09-28 23:09:00	Just remember that if a Business absorbs the increase they still have to pay it. Meaning if they get a item from their suppliers (lets say a lounge suite) and the said supplier charges the business 15% GST, then the business has to pay IRD 15% in GST. So sooner or later the business if only chargeing the customers 12.5% then they will cost them money. With GST, the business doesn't keep it, they are simply gathering the Tax for IRD, which has to be paid on what ever time plan they are on. Mine for example is two monthly, so If I gather $1000 in gst, I have to pay that to IRD. Sure thats only $25 per $1000, if I charged 12.5%, but times that by a few thousand dollars, which these big places easily would pay, then it soon adds up to some serious money. So , if a company only collects $1000 in GST from their customers, but have to pay IRD $1025, the extra comes out of the profit/Pockets of the business. $25 is nothing, but its only a simple example.	wainuitech (129)
1139767	2010-09-28 23:49:00	Wainuitech is quite correct . As the Scotsman once said, "Many a mickle makes a muckle . " I know of a programmer who did the roundings in several thousands of financial transactions weekly so that maybe $0 . 000085 went into his account on each transaction . The books balanced with no problem however . :)	Snorkbox (15764)
1139768	2010-09-29 01:09:00	What i meant was you can just blame the gst increase for the reason to increase your charges if you have to. It is a perfectly good reason. "Blame the gummint". Sounds better than "i have to eat"	Gobe1 (6290)
1139769	2010-09-29 04:35:00	This is precisely why some prices won't go up, because the prices become unattractive for advertising. Supermarkets will be one example - they'll still do a promotion of xyz item at $2.99 instead of $3.06 because it looks better on paper. Retailers who sell an item for $99 will try to keep it at that price if they can, because it looks better on a flyer or TV ad than $101.20. They may shrink the product instead to compensate, but that's another story. That is exactly the reason why the labour governments idea of removing GST of fruit and vegetables is a bad idea, as it is often priced at a 49c, 99c $1.99 etc figure. I can't see them then reducing their prices to an odd amount.	robbyp (2751)
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