Poundland - Why no price drop after VAT change?

[marc1990 10]

You know the VAT cut made things cheaper, why is stuff at poundland still a pound! have they ever addressed this??

[tifftifco2 10]

You know the VAT cut made things cheaper, why is stuff at poundland still a pound! have they ever addressed this??

 

oh yeah! i never thought of that! rip off! lol.

[UnkleBob 10]

it's because everything they sell is a pound, always has been and always will be while-ever it's called poundland.

[Greybeard 10]

I use that 99p shop on Angel street now - everything is so much cheaper

[melthebell 863]

it's because everything they sell is a pound, always has been and always will be while-ever it's called poundland.

yeah theyd get closed down under the trades description act for cheating if things wernt a pound

[Naylor 10]

Companies have no legal obligation to pass on the VAT cut saving. Poundland would have had to change all their inventory prices on their system to make things add back up to a pound on the tills. Just think though thats an extra 2.5% profit they have made since the cut.

[dazzler4 10]

97.5 penceland!!!

[cressida 1,564]

97.5 penceland!!!

 

patent 'penceland' NOW:D

[zongamin 10]

97.5 penceland!!!

 

Its should actually be 97.8719p land.

 

Old Item Price = £1 / 117.5 * 100 = 85.106p before VAT

 

85.106p /100 * 115 = 98.8719p

 

Thats because VAT is added to the value of the item, not a percentage of the total.

 

(boring eh)

[RikkiTikki 10]

Its should actually be 97.8719p land.

 

Old Item Price = £1 / 117.5 * 100 = 85.106p before VAT

 

85.106p /100 * 115 = 98.8719p

 

Thats because VAT is added to the value of the item, not a percentage of the total.

 

(boring eh)

Were you bullied at school by any chance ?

[goldenfleece 11]

Does anyone ever go in these shops? Surely its just all complete low quality tat that will fall apart in 5 minutes.......

wierd business model, how on earth do they make any profit.......unless what they sell for £1 is actually only worth less than 40 pence or something...then its going to be even lower quality

[Antics^^ 10]

Does anyone ever go in these shops? Surely its just all complete low quality tat that will fall apart in 5 minutes.......

wierd business model, how on earth do they make any profit.......unless what they sell for £1 is actually only worth less than 40 pence or something...then its going to be even lower quality

 

Surprisingly there are a lot of recognisable brand names, from Coca-Cola to Sony. I get my toothbrushes from Poundland, three decent Colgate ones for a quid.

 

Economies of scale, I believe helps them post a profit.