Pricing in OZ

I went to my local Pirtek this morning to get a few bits and pieces, as the chap was looking up the prices in his book I was reading it upside down. The hose barb I got was in the book with a List price of 1.35 and a RRP of 2.55, I was charged 2.55 PLUS 10 percent GST, so around 2.80.
Does anyone know if this way of doing it is right? I thought RRP should include GST?
I had another issue a while back buying a 4or 5 litre bottle of Inox, the price on the bottle said 70.00 (not sure of actual price this is just for example) with a little plus sign next to it? I went to pay the 70.00 and the bloke added GST to it, this practice is ILLEGAL, the price on the product must include the GST according to the ATO. I had no hope of getting the bloke to understand this so I paid the extra and left and I won't be going back, his explanation went along the lines of there are all different discounts that their ACCOUNT customers get and it would be too hard to work out?
My argument is I am paying CASH, you do not have to wait for your money I should be getting the best price!
It wil be interesting to hear of others experiences
Will

Hi Will,

Your experience is sadly pretty typical, I'd try and get trade discount, even if that means opening a trade account, and still paying cash.

Trade price for electrical stuff, contactors, switchgear, and so on is often 50% off retail. I always grimace a bit when you see a quote for a job, and you know the materials are being quoted at full retail..

I can remember buying electrical enclosures at 70% off retail...

Paying cash is not always a guarantee of the best price.

Regards
Ray

I think the RRP is just that, the Recommended Retail Price as suggested by the manufacturer/distributor etc. I believe the retailer is free to sell at whatever price he or she feels like with the exemption of certain specific goods and services that will attract maximum prices as set by the relevant government authority. Indeed trying to force a price upon them would be dabbling in the area of price fixing in addition to other nasties.

Pete

Hi will,

My understanding is that all advertised or price lables must be inclusive of GST. Prices in a pricing book can be ex GST as often it caters for purchases that will not include GST such as businesses.

In any case, any price quoted to the public is assumed to be inclusive of GST unless stated..

Cheers,

Simon

Quote:

---

unless stated..

---

I think that's the key statement. So if the store has a sign up saying the advertised prices don't include GST, then, well they don't include GST. The airlines were recently in strife for this as they used to advertise cheap tickets "plus taxes and surcharges". Nothing wrong with that under the law at the time, but it was terribly misleading (as cheap airlines typically are to suck in the unsuspecting), so I believe the law was changed for this particular instance. Otherwise I understand most businesses are quite at liberty to quote prices excluding GST.

Pete

Pirtek would likely argue that they are a trade supply store not retail(still better a price that you have to add GST to than a lot of "trade" stores that have no prices at all). What a cash customer pays is often up to the guy on the counter and how much he likes you or how much you pained him lol. The discounts can be huge, as Ray says 50% and more. I had a sparky replace all the powerpoints and light switches in my house. He had me go pick up all the parts and pay cash but on his account. The discount I got on the parts covered $650 of his $700 bill for the day. (I think that parts cost about $400 to him, retail would have been $1050ish)
Stuart

Simon
As far as I am aware, It is illegal to not include the GST component in the marked price, you can either show the breakdown on the docket or just the total. As far as I know you cannot legally state prices are plus GST.
Will

My understanding is that it is legal for businesses which primarily trade as business to business to list prices as nett price plus GST, as the nett price is the effective cost to another business which can offset the GST paid against the GST they collect on goods and services supplied.

However business which primarily service end user consumers must include the GST in the displayed price, as the consumer cannot offset the tax.

In the case of the parts you are discussing, the supplier is primarily a B2B supplier, and from the description provided, did not individually price mark the items on display, but relied on a confidential pricelist to determine selling price. Technically, it is naughty of you to read this price list upside down, but be confident that you were not overcharged as the price in the book was the nett price you were charged.

Here is what the ACCC has to say about pricing Pricing and purchasing

Consumer retailers (as compared with trade retailers) must always show prices that clearly indicate the price inclusive of GST as everyday consumers must pay GST.

Regarding wholesalers and trade suppliers, they predominantly sell to customers who effectively do not pay GST because they claim back the GST as an input tax credit.

From the ACCC site

Traders are required to provide you with a single cash price for the products or services they offer. The single price means the minimum total cost that is able to be calculated at the time the representation is made. The single price must be clear at the time of the sale and the most prominent price displayed.

I suppose that if I saw pricing of $70+ in a trade store, I'd figure that the price was $70 plus GST = $77. Nevertheless, I'm not sure whether $70+ is clear pricing information to the majority of consumers.

Quote:

---

Originally Posted by wbleeker

I went to my local Pirtek this morning to get a few bits and pieces, as the chap was looking up the prices in his book I was reading it upside down. The hose barb I got was in the book with a List price of 1.35 and a RRP of 2.55, I was charged 2.55 PLUS 10 percent GST, so around 2.80.
Does anyone know if this way of doing it is right? I thought RRP should include GST?
I had another issue a while back buying a 4or 5 litre bottle of Inox, the price on the bottle said 70.00 (not sure of actual price this is just for example) with a little plus sign next to it? I went to pay the 70.00 and the bloke added GST to it, this practice is ILLEGAL, the price on the product must include the GST according to the ATO. I had no hope of getting the bloke to understand this so I paid the extra and left and I won't be going back, his explanation went along the lines of there are all different discounts that their ACCOUNT customers get and it would be too hard to work out?
My argument is I am paying CASH, you do not have to wait for your money I should be getting the best price!
It wil be interesting to hear of others experiences
Will

---

It always gets :~ me how a taxable supply can be quoted excuding GST. If it is taxable then it should be quoted inclusive. Yes businesses get a rebate on the tax paid but that calculation happens at the business end, not the point of sale.

John :roll:

A business quoting to someone who can claim the GST can quote a non GST price but must include words such as "excluding GST"..if they dont use "Excluding GST" they run the risk of being held to the price shown on their quote!.

A business quoting to a person or someone who cannot claim the GST must show a price including GST no matter how else they show pricing....ie "$10.00" + "GST $1.00" it must show the total ie $11.00.(including GST) or similar

Products on display to the general public must include GST. if it has one price only shown then that price must include GST...

One can argue this in a court if they so desire...whether its worth it or not is up to the individual

the above is my understanding of what the tax commissioner wants

Quote:

---

Originally Posted by Blu_Rock

I suppose that if I saw pricing of $70+ in a trade store, I'd figure that the price was $70 plus GST = $77. Nevertheless, I'm not sure whether $70+ is clear pricing information to the majority of consumers.

---

I'd say you had figured wrong..if the public can enter the store premises and buy then the price displayed must include GST!