Prices going up before GST kicks in

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Linuxluver

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#68767 27-Sep-2010 22:45

I've noticed quite a few places have already put their prices up....and may well do so again when the GST rate rise kicks in....or they will claim they've 'held the line'.

We went to a chemists in the Glenfield Mall yesterday and picked up an item. The price marked on the goods was about $2 less than the till said it should be. The person serving behind the counter explained to my wife (I was off looking at something else) this was because they had already added the new GST amount.

I would have argued the point....but my wife had chosen not to. Her call.

That aside....has anyone else noticed prices leaping this past week?

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#385228 27-Sep-2010 23:03

Is that even legal?

boby55

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#385229 27-Sep-2010 23:03

The Only shop I have noticed this happen is Mitre 10 Mega, Who Have Progressively been changing all the products stickers over to the 15% price but when you get to the till you still only get charged the 12.5%, & There are big signs as you walk in saying this.

IIRC If the product has a price on it they have to sell it to you at that price in this situation. Unless of course it had ex gst, Even then the current legal GST rate is 12.5%. So the shop will be profiting the extra $$ it makes on each item until next month

JMatt94

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#385231 27-Sep-2010 23:11

Heard my parents say that their Sky bill has gone up an extra $10 a month..not sure if it's to do with GST or not, but they haven't upgraded their plan.

Linuxluver

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#385273 28-Sep-2010 07:29

JMatt94: Heard my parents say that their Sky bill has gone up an extra $10 a month..not sure if it's to do with GST or not, but they haven't upgraded their plan.

Happily, I'm at no risk of overpaying Sky as I'd never use them as presently configured. I grew up with cable TV in Canada for $15 / month - or less. Paying $1000 / year for Sky just seems wrong on so many levels. That Rupert Murdoch is one of the owners (IIRC) makes that little bit easier.

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#385278 28-Sep-2010 08:12

I know of a couple of places that have released pricing for after the GST rise - but then when you look at the pricing its actually above the GST rise - when questioned about it, they said "oh weve rounded our prices up to the nearest $10 to make it easier for everyone".

Like we cant figure out pricing as it is now...

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old3eyes

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#385295 28-Sep-2010 08:34

The food area where the increase will be way more that 2.5% increase. I assume most cafes and restaurants will hick prices by at lest 10% using the guise of GST to blame for it

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jjnz1

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#385326 28-Sep-2010 09:14

The reason the prices may have already risen is because the stock that you are buying will be on some sort of account and will not be paid for by the store until after October 1st.

In effect, most items in stores now will be subjected to the 15% GST. Although, you will find that most stores will just absorb the small increase until 1 October.

Aaroona

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#385369 28-Sep-2010 10:59

I'm really not looking forward to seeing TradeMe's new fees....

nickb800

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#385385 28-Sep-2010 11:25

boby55: The Only shop I have noticed this happen is Mitre 10 Mega, Who Have Progressively been changing all the products stickers over to the 15% price but when you get to the till you still only get charged the 12.5%, & There are big signs as you walk in saying this.

Yeah this seems the way most stores are doing it, I know Warehouse Stationary started changing price labels months ago, but are only updating till prices when the rate changes

boby55:
IIRC If the product has a price on it they have to sell it to you at that price in this situation.

I think they dont, legally a price label/sticker is 'an invitation to offer', they dont have to sell it at that price.

Advertising/Promotion is completely different, as you would expect maliciously advertising a different price to what you will charge falls under the fair trading act.

Nonetheless, charging the higher rate of GST before it kicks isnt a great move for customer service, regardless of what/when your suppliers charge

sbiddle

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#385389 28-Sep-2010 11:33

nickb800:
Nonetheless, charging the higher rate of GST before it kicks isnt a great move for customer service, regardless of what/when your suppliers charge

Just wait until people see their bills for next month from various utility providers including power, phone, internet etc.

Any charges incurred before the 1st but billed after the 1st will be charged at the new GST rate.

Bee

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#385394 28-Sep-2010 11:39

Notice how everyone is extremely excited about the tax cut they will get???

The government proposed that all retailers would increase their prices by the increased GST amount and the tax cuts would more than compensate the consumer.

My own view was that retailers would absorb the price increase for a few months at least in the name of competition...

Turns out that most places are taking the opportunity to increase their profit margins along with the tax increase which means in the end the consumer will be worse off or just not buy the products...

Thou its a little hard not to buy things like power and basic food...

I can also think of one product that has progressively gone from $16 to $21 over the course of this year and will no doubt go up again with the GST increase :(

And yes I do have the right to complain as I did vote and I didnt vote for this government!

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tardtasticx

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#385405 28-Sep-2010 12:17

IMO the Government needs to make so many products exempt from GST completely, like things that will prevent people from needing government money, like fresh fruit; helps lower obesity rate = fewer doctors visits. Contraceptives = No doctors visits, no going on the benefit to support the child. Bottled water/water in general = promotes healthier drinking in money stricken families = helps fight obesity. If they cut GST on those products alone then surely it would pay for itself and the consumer would be better off unlike this $50 a week super amazing tax cut we're meant to receive.

Geese

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#385416 28-Sep-2010 12:41

At my local Mitre 10 as said above, the price tags have been changed, yet I was charged the label price, not the lesser old price also still shown on their website. It wasn't worth complaining over such a small amount.

People aren't happy about the rise, yet I have heard no complaints about the fact electricity is increasing 25% in April 2011...

manta

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#385444 28-Sep-2010 13:31

in the UK GST (or VAT) is not charged on food, childrens' clothes or any books. Why? Because those are what are deemed to be essential items and thus not liable to consumer choice as such. Seems sensible to me.

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#385452 28-Sep-2010 13:43

manta: in the UK GST (or VAT) is not charged on food, childrens' clothes or any books. Why? Because those are what are deemed to be essential items and thus not liable to consumer choice as such. Seems sensible to me.

Nice idea but a TV in NZ is deemed a necessity of life according to WINZ (or at least used to be) - cant see them making TVs GST free because its deemed "necessary".

XPD / Gavin

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