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View Full Version : Have GST been applied for you yet?



Nomad
27-09-2010, 09:18 AM
Banks and my ISP has impemented them prob by this Friday afaik when they kick in, have received their emails.

Actrix ISP has increased my plan up approx 2.5%.

PinoyKiw
27-09-2010, 09:56 AM
The ISP we use, I beleive they are holding off on the GST increase but you could probably bet your last dollar that many other companies will be in a rush to increase, then there will be those that will hike there pricing under the guise of GST.

Like anti virus testing, be interesting real world end results of just how much better or worse off people are compared to what the govt is touting once the increase and rebates flow through.

kenj
27-09-2010, 11:53 AM
Just waiting for SWMBO to say she wants 2.5% more!!!

Of what, I will ask :D:D

Ken

lakewoodlady
27-09-2010, 01:45 PM
Slingshot have notified me that the new gst rate will be reflected in my October account. (from $79.95 - $81.73).

LL

Nomad
27-09-2010, 02:24 PM
These prices looks stupid. From a nice round number to some odd cents when we don't have 1 or 2c anymore ...

lakewoodlady
27-09-2010, 03:43 PM
These prices looks stupid. From a nice round number to some odd cents when we don't have 1 or 2c anymore ...

Yes, if one paid cash I wonder if the 0.73 cents would be rounded up to 0.80 or down to 0.70 ?

LL

pcuser42
27-09-2010, 03:46 PM
Just waiting for SWMBO to say she wants 2.5% more!!!

2.2222222222...% ;)

robbyp
27-09-2010, 04:08 PM
Slingshot have notified me that the new gst rate will be reflected in my October account. (from $79.95 - $81.73).

LL


That is the problem with that sort of pricing. With my business I have my prices exclusive of GST, which is great for this sort of situation, as you don't have to change the advertised price.

lakewoodlady
27-09-2010, 04:18 PM
That is the problem with that sort of pricing. With my business I have my prices exclusive of GST, which is great for this sort of situation, as you don't have to change the advertised price.

So, I wonder if they will raise the price of the plan to a nice round figure after a few days, weeks months? And make it GST included.

LL

lakewoodlady
27-09-2010, 04:21 PM
The ISP we use, I beleive they are holding off on the GST increase but you could probably bet your last dollar that many other companies will be in a rush to increase, then there will be those that will hike there pricing under the guise of GST.

Like anti virus testing, be interesting real world end results of just how much better or worse off people are compared to what the govt is touting once the increase and rebates flow through.

And your ISP is?

LL

pctek
27-09-2010, 05:01 PM
These prices looks stupid. From a nice round number to some odd cents

Don't worry, they'll keep edging it up to a new round figure with the excuse that it's normal other price increases that are necessary because.

somebody
27-09-2010, 05:43 PM
This is precisely why some prices won't go up, because the prices become unattractive for advertising. Supermarkets will be one example - they'll still do a promotion of xyz item at $2.99 instead of $3.06 because it looks better on paper. Retailers who sell an item for $99 will try to keep it at that price if they can, because it looks better on a flyer or TV ad than $101.20.

They may shrink the product instead to compensate, but that's another story.

DeSade
28-09-2010, 07:54 AM
AFAIK Orcon is not raising its fees for GST, In fact If I read the comms right they are revamping all plans and lowering costs across the board, no word on caps yet thou.

coldfront
29-09-2010, 09:31 AM
Its interesting to see who is doing what about the increase to GST.

One company I deal with is implementing price increases from Friday and rounding it up to the nearest dollar.

It is though inevitable that business with eventaully raise prices to a more even amount within twelve months sighting this as part of the "Annual" review.

We discussed this at work and from what I know no one in our industry is planning to increase rates on the 1st October intead absorbing the GST increase. Being seasonal we can get away with that as November 1st is start of the summer pricing anyways.

What annoyed me was my partner and a few of her coworkers have been pushing for a payrise. The response they just got from their employer was "Your net wage is increasing on October 1st with the lower tax rate" WTF!!! Last payrise her company gave was inline with minimum wage and those above minimum wage have not seen a pay increase for 4 years (before the recession). makes you wonder really!

Needless to say I think I need to increase my charge out rates for the self employed work I do either way I am going to get someone blaming GST as my reason.

Gobe1
29-09-2010, 09:38 AM
You can use the gst increase as an excuse just like everyone else

coldfront
29-09-2010, 10:21 AM
Why should I?

You missed what I said about how many businesses I know that will absorb the increase for a while or until the annual or seasonal reviews take place.

From a practical point of view all my charges are inclusive gst increasing by 2.5% would make things awkward to say the least. For a start the weight of coinage is a good incentive not to worry about the increase.

Would have to be charging out at $200 per hour to be worrying about 2.5 %

We are not all greedy and panic about a few cents here and there. Then again look at the ripoffs being charged on mileage charges during the big fuel hikes a few years ago! How many were as quick to drop them when the price fell back?

wainuitech
29-09-2010, 11:09 AM
Just remember that if a Business absorbs the increase they still have to pay it.

Meaning if they get a item from their suppliers (lets say a lounge suite) and the said supplier charges the business 15% GST, then the business has to pay IRD 15% in GST.

So sooner or later the business if only chargeing the customers 12.5% then they will cost them money.

With GST, the business doesn't keep it, they are simply gathering the Tax for IRD, which has to be paid on what ever time plan they are on. Mine for example is two monthly, so If I gather $1000 in gst, I have to pay that to IRD.
Sure thats only $25 per $1000, if I charged 12.5%, but times that by a few thousand dollars, which these big places easily would pay, then it soon adds up to some serious money.

So , if a company only collects $1000 in GST from their customers, but have to pay IRD $1025, the extra comes out of the profit/Pockets of the business. $25 is nothing, but its only a simple example.

Snorkbox
29-09-2010, 11:49 AM
Wainuitech is quite correct. As the Scotsman once said, "Many a mickle makes a muckle."

I know of a programmer who did the roundings in several thousands of financial transactions weekly so that maybe $0.000085 went into his account on each transaction. The books balanced with no problem however. :)

Gobe1
29-09-2010, 01:09 PM
What i meant was you can just blame the gst increase for the reason to increase your charges if you have to. It is a perfectly good reason. "Blame the gummint". Sounds better than "i have to eat"

robbyp
29-09-2010, 04:35 PM
This is precisely why some prices won't go up, because the prices become unattractive for advertising. Supermarkets will be one example - they'll still do a promotion of xyz item at $2.99 instead of $3.06 because it looks better on paper. Retailers who sell an item for $99 will try to keep it at that price if they can, because it looks better on a flyer or TV ad than $101.20.

They may shrink the product instead to compensate, but that's another story.

That is exactly the reason why the labour governments idea of removing GST of fruit and vegetables is a bad idea, as it is often priced at a 49c, 99c $1.99 etc figure. I can't see them then reducing their prices to an odd amount.

wainuitech
29-09-2010, 04:46 PM
Wrong post oops

ubergeek85
29-09-2010, 06:12 PM
New prices at work, as of friday, not sure what they are yet. I'd be surprised if much has gone up more than $1.40 at most (and that's our high-priced stuff), but I don't know.

All it means to me is that I have to refer to the sheet beside the register again for a while until I pick up the new prices. I don't have to pay for much from work... I do love contracted perks! If I did, I'd be down roughly... $35 a week!

Nomad
11-10-2010, 02:37 PM
For a while now .. I noticed that my ISP and my bus has increased fares 2.5% since they have odd prices to the "cent" but other places have increased GST more than 2.5% just so prices don't look strange. Like coffee from $3.70 or was it $3.80 to $4.00, they also used smaller containers! $26 haircut to $27.

Some other places, boiled egg 80c to 90c. $3.50 sandwich/pies to $3.70.

Gobe1
11-10-2010, 02:45 PM
Yep seen it myself especially at dairies.
My favorite 2 sandwiches gone from 3.60 to 4 bucks. Easier to just round it off also i guess

roddy_boy
11-10-2010, 04:04 PM
90c is a pretty damn good deal for a boiled egg Nomad. Wouldn't complain about that.