VAT reduction
VAT is being reduced from 17.5% to 15% as from Monday 1 December. So a bed that cost £100+VAT is now £115 rather than £117.50, ie a 2.13% reduction. Not 2.5%? Confused? That’s VAT for you.
Its been a hard year for price changes this year. Silentnight and Sealy have put up their prices twice. Some importers are putting on temporary “exchange rate” surcharges and some prices have just gone off the chart. Only 6 months ago we could sell a good chunky pine bunk bed for £99. Its now going up to £179. You have to rub your eyes.
The VAT reduction is of course great news. Petrol costs are coming down and the pound (sterling) has firmed up against the dollar, at least, over the last month. At $1.50 to the £1 its not good but at least its stable. One big increase for us this year has been the cost of steel and its effect on mattress spring costs. China got the blame and the word is they’re not using so much these days.
So with luck we can start to find price cuts again.
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This entry was posted on Saturday, November 29th, 2008 at 5:29 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
