UK Game Prices Could Rise in New Year
Distributors aren't budging on prices, so retailers may pass the cost of an upcoming tax gain onto British consumers.
UK gamers could be getting a rather unwished late Christmas present this year, in the form of higher prices. Value Added Tax, or VAT, will growth from 17.5% to 20% on January 1st, and despite calls from the retail sector to take down trade prices, one political platform holder has ordered its official distributor to freeze its prices at current levels, with another apparently planning to do the same shortly.
If the prices persist unchanged, retailers essentially have two options: either they absorb the tax increase themselves and reduce into their profit margins, or they fall in step with distributors and pass the increase on to consumers. Obviously, neither is ideal, and could be especially damaging to the smaller, independent retailers who are already troubled to compete with supermarkets and retail irons. The increase in tax will mean that unfit prices will increase by £1 and console prices will growth by £5 – £6.
Higher prices may also affect what stock retailers dribble. Unmatchable retailer suggested that consoles would be harder to sell at the higher prices, and the ratio of high margin to low margin stock would change to reflect the new retail situation. Pre-owed sales, already a earthshaking source of revenue for retailers, are likely to read on even greater grandness, being both cheaper and more profitable than new buy in.
Source: MCV
https://www.escapistmagazine.com/uk-game-prices-could-rise-in-new-year/
Source: https://www.escapistmagazine.com/uk-game-prices-could-rise-in-new-year/
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