3 ms·

Do as the rest of the world does and include the tax in the price. Margins will obviously change between stores in different tax districts but arguably that phe

by koyote 8y ago

Do as the rest of the world does and include the tax in the price. Margins will obviously change between stores in different tax districts but arguably that phenomenon is already priced in today's profits: A store on the California to Oregon border has to price in the fact that their customer base could buy the same product with zero sales tax across the border.

spc476 8y ago
McDonald's is offering a 99₵ burger as part of a nation wide promotion. Where I live (Florida) it's $1.06 with tax. In Oregon, it would be 99₵ (no sales tax). In North Carolina, it's $1.03 except Ashville, North Carolina has a 7% tax rate so it would be $1.07 there. What price does McDonald's advertise for their promotion?
- koyote 8y ago
  99cent. In Europe they have a 1 euro menu regardless of what country the burger was sold in (countries have different VAT rates). Some advertising is even shared between smaller countries that speak the same languages.
- kwhitefoot 8y ago
  > What price does McDonald's advertise for their promotion? I really don't care, it's their problem not mine. All I want is for stores, fast food places, etc., to be honest about the price I am to pay. In Europe, including the UK, it is illegal to advertise only tax-exclusive prices to end customers.
  - tialaramex 8y ago
    Dragging this back towards a HN topic, years back this caused a fight for PC computers stores. They argued that their main customers were businesses and so advertising prices "before tax" was expected by the trade customers. Others argued really most customers were hobbyists and so would pay the VAT price. Obviously it's beneficial to be able to advertise the lower price, these days assembling your own PC from components must be much less common than it was back then so I imagine even if the decision went in their favour back then that's changed since.
  - Larrikin 8y ago
    This is a minor annoyance only to foreigners here on vacation. You quickly adjust to not having the tax included and it is something people in the US don't even consider unless they've traveled abroad. The system with the taxes included in the advertised price only really works when you have a national tax with no other taxes involved. No state or city will ever go for that and it really isn't bothering anyone since everyone is used to the system already. If you want to rail against hidden charges complain about the restaurant welfare system that allows employers to legally under pay and fire employees for not making the majority of their money from tips
- Jolter 8y ago
  In a world with tax-included prices, obviously they would advertise the local price in local media. In national media, who cares what they do? They could put "$0.99 (prices may vary)" or whatever they choose. The headache of an advertiser should be the least of your concerns when dictating consumer law. (And yes, it is law in many countries. Consumer protection laws say that consumer pricing must include VAT.)

by koyote 8y ago

spc476 8y ago

McDonald's is offering a 99₵ burger as part of a nation wide promotion. Where I live (Florida) it's $1.06 with tax. In Oregon, it would be 99₵ (no sales tax). In North Carolina, it's $1.03 except Ashville, North Carolina has a 7% tax rate so it would be $1.07 there. What price does McDonald's advertise for their promotion?

koyote 8y ago
99cent. In Europe they have a 1 euro menu regardless of what country the burger was sold in (countries have different VAT rates). Some advertising is even shared between smaller countries that speak the same languages.
kwhitefoot 8y ago
> What price does McDonald's advertise for their promotion? I really don't care, it's their problem not mine. All I want is for stores, fast food places, etc., to be honest about the price I am to pay. In Europe, including the UK, it is illegal to advertise only tax-exclusive prices to end customers.
- tialaramex 8y ago
  Dragging this back towards a HN topic, years back this caused a fight for PC computers stores. They argued that their main customers were businesses and so advertising prices "before tax" was expected by the trade customers. Others argued really most customers were hobbyists and so would pay the VAT price. Obviously it's beneficial to be able to advertise the lower price, these days assembling your own PC from components must be much less common than it was back then so I imagine even if the decision went in their favour back then that's changed since.
- Larrikin 8y ago
  This is a minor annoyance only to foreigners here on vacation. You quickly adjust to not having the tax included and it is something people in the US don't even consider unless they've traveled abroad. The system with the taxes included in the advertised price only really works when you have a national tax with no other taxes involved. No state or city will ever go for that and it really isn't bothering anyone since everyone is used to the system already. If you want to rail against hidden charges complain about the restaurant welfare system that allows employers to legally under pay and fire employees for not making the majority of their money from tips
Jolter 8y ago
In a world with tax-included prices, obviously they would advertise the local price in local media. In national media, who cares what they do? They could put "$0.99 (prices may vary)" or whatever they choose. The headache of an advertiser should be the least of your concerns when dictating consumer law. (And yes, it is law in many countries. Consumer protection laws say that consumer pricing must include VAT.)