Price, Price, Baby
All of sudden price is everywhere. I sit and watch the television and the adverts are Price Crunch, Price Crash, Smashing Prices, Price Slams and Prices we are going to tie you to a table and squeeze you until blood comes from your ears…..
So yesterday the Government increased VAT to 20%…for those of you that don’t know, VAT (Value Added tax) is basically a tax on the price of most consumer goods. And of course in response the retailers are all showing how they are reducing prices rather than increasing them whilst of course the brightest retailers HAVE been slowly increasing prices since the announcement of the changes so that at the application they can show they are holding or reducing prices. Don’t believe me? Bet you I’m right.
I’m not sure how much of this actually makes a difference to be honest. VAT has been at increasingly higher percentages over the years, 15%, 17.5% does 20% really change our attitudes? Short term maybe…medium term, consumers will just suck it up and get on with it. I really don’t think we’re are that price sensitive anymore.
So I know times are tough and I know that we are all watching what we do, but is price the all determining factor? I just don’t buy it (geddit?). We have income and we have out goings and we make decisions based on a set of values that we hold….we place them in value of importance to us. Each and every person is different.
Of course if something increases by 25%, by 50% we take note….but a few pence here, a few cents there, the odd centime or deux do we really take notice? I don’t want to sound insensitive or arrogant…I know that I am luckier than many. I just think consumers are more savvy than just the price game.
We take a whole range of things into account….but maybe I’m wrong…..