2D not raising prices on Oct 1st

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › 2D not raising prices on Oct 1st

Finch

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#68533 24-Sep-2010 00:34

Good on ya 2Degrees. Keeping it how it was and not following in the footsteps of other companies. Great to see somebody out there isnt raising prices to compensate for the Tax Rate increase on October 1st.

http://www.stuff.co.nz/business/industries/4160920/2Degrees-won-t-pass-on-GST-hike

robbyp

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#383859 24-Sep-2010 00:44

M_I_C_H_A_E_L: Good on ya 2Degrees. Keeping it how it was and not following in the footsteps of other companies. Great to see somebody out there isnt raising prices to compensate for the Tax Rate increase on October 1st.

http://www.stuff.co.nz/business/industries/4160920/2Degrees-won-t-pass-on-GST-hike

Probably becuase they compete mainly on price anyway. However remember that if a company is raising it's prices by the rate of the GST rise, they aren't actually making more money, it is just the government that is getting more. The company itself isn't getting any more, unless they raise it by more than the 2.2% rise.

Some comapnies can afford to absord the rises, if they are already making a pretty good profit from their customers.

Don't blame companies for rising their prices by 2.2%. Just blame those who are raising their prices by more than 2.2%

haakuturi

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#383882 24-Sep-2010 07:00

Where are you getting 2.2% from?

15% - 12.5% = 2.5%

kiwitrc

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#383883 24-Sep-2010 07:12

haakuturi: Where are you getting 2.2% from?

15% - 12.5% = 2.5%

If you take the current price the GST increase will raise it by 2.2%.

So if you have a price of say $100 pre the GST increase the new price will be $102.20 or a 2.2% increase, even though GST is going up by 2.5%.

haakuturi

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#383891 24-Sep-2010 08:02

o.O *brain implodes*

freitasm

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#383906 24-Sep-2010 08:39

And of course you have to realise this is a 20% increase in the GST *rate* (12.5 + 20% = 15).

You obviously don't expect prices to raise 20%, do you?

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kiwitrc

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#383909 24-Sep-2010 08:51

freitasm: And of course you have to realise this is a 20% increase in the GST *rate* (12.5 + 20% = 15).

You obviously don't expect prices to raise 20%, do you?

Phil Goff does.

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bazzer

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#383953 24-Sep-2010 10:23

haakuturi: o.O *brain implodes*

1.15/1.125 = 1.022 = 2.2% (compounded) increase.

blakamin

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#383971 24-Sep-2010 11:00

I have my whole phone, mobile, TV, interwebs through TC and my bill is actually going to be cheaper :D