Keep the customer satisfied

[DanS]

Originally posted by Dauphin
I would think it easier to have the price inclusive of tax, and have the receipt give details of any tax component - unless your customers more often than not can reclaim tax. Most people would be interested in the bottom line figure.

While true, it's not done that way here. Kenobi is coming from off-planet on this one.

[Kontiki]

Originally posted by Ben Kenobi
Yes, I have, and they usually say that the prices have taxes on top of them, or they include the taxes in the price.

That's the point of having signs with (+tax), etc.

Again, same question. I can't remember the last time I saw a sign that said "+ tax" on anything. It's pretty much inferred by the fact that there's tax on almost everything.

[Ben Kenobi]

A) What make you think they're taking a loss on the shoes?

When they charge 90$ for one, and 100$ for two, and the shoes have a clearance tag on them...

B) If they were, why would they want to take an even bigger loss?

Inventory costs money to maintain. If you have things that are not selling at all, it makes sense to discount them heavily to sell them, and to clear the inventory for things that will make you money.

C) Does the government stop collecting taxes on things stores decide to sell at a discount?

No, just that if you are making a discount, why not make it inclusive of tax?

[Dauphin]

Originally posted by Wezil


Governments would absolutely love that. Consumers don't see the tax they pay...

I appreciate that's a reason why its done, but it does mildly annoy me when I shop in places (such as the US) that list pre-tax prices and then you find the price has to be inflated a further 10+%. I personally don't care who's getting the money, I'm just interested in the price I can get for the product I'm buying.

[Ben Kenobi]

I can't remember the last time I saw a sign that said "+ tax" on anything. It's pretty much inferred by the fact that there's tax on almost everything.

I've seen lots of signs either with (+ tax) on them, or with taxes included. I dunno why folks think I am off base on this.

[DanS]

10+%? Where the hell are you shopping in the US?

The reason why it's not tax-inclusive in the US is because tax varies by local jurisdiction. It would be impossible to have a nationwide marketing campaign on price with a tax-inclusive scheme.

[Ben Kenobi]

That's not the case in canada, where we do have a nationwide sales tax.

[Dauphin]

Originally posted by DanS
10+%? Where the hell are you shopping in the US?

I'm probably just mixing up with GST in Australia which is 10%.

[Kontiki]

Originally posted by Ben Kenobi


When they charge 90$ for one, and 100$ for two, and the shoes have a clearance tag on them...

Do they also have a line item detail of their cost to the retailer?

Inventory costs money to maintain. If you have things that are not selling at all, it makes sense to discount them heavily to sell them, and to clear the inventory for things that will make you money.

It also makes sense to get as much money as you can for it. If you have something that's not moving fast enough or at all, you don't start giving it away for free.

No, just that if you are making a discount, why not make it inclusive of tax?

What's special about a discounted item that it should be inclusive of tax when a regular priced item is not? And again, if you make it inclusive of tax, then the retailer is taking an even bigger hit, because they still have to fork the tax over to the government.

[Kontiki]

Originally posted by Ben Kenobi
That's not the case in canada, where we do have a nationwide sales tax.

And differing provincial taxes, or HST in the maritimes.....

[Boris Godunov]

Originally posted by Ben Kenobi
Inventory costs money to maintain. If you have things that are not selling at all, it makes sense to discount them heavily to sell them, and to clear the inventory for things that will make you money.

The cost of maintaining two pairs of shoes in the back of a shoe store is far, far less than the amount it would cost them if they ate the sales tax.

I don't think I've ever seen tax included in the price here in the U.S. It's certainly not expected.

[duke o' york]

In Yookay, all the prices are inclusive of VAT, or have "+VAT" in large letters next to the price. Possibly a result of consumers taking the Kenobi approach, and leaving them in the shop when they realise how much they really cost.

[Az]

Here, taxes are always included in price. I'd find any other practice highly offensive and an attempt to swindle me into buying stuff.

Usually, All prices are after tax, and on the receipt the amount of tax is mentioned.

[DanS]

Yeh, well Kenobi should move to Israel then.

[Az]

If this is an x-post, this is glorious. But I doubt it is.