With the decrease in VAT rate from 13.5% to 9% there is a genuine opportunity to deliver better value to the customer and to win more business in the process.
In this regard, there are two obvious but important points that all businesses impacted by the rate change should consider…
1. Pass on the saving to the customer!
Do we really want to hear a stream of calls to radio stations with a litany of stories of businesses not passing on the reduction to the customer. That sort of negative press at any time, let alone in these challenging times is not what's needed right now.
2. Let your customers know that you are passing on the saving.
Do not assume that your customers will be aware of or notice the price decrease.
With this in mind, here are some ideas on how to build awareness of the savings being passed on to your customers from the VAT rate decrease. These ideas are to generate you more business and to build your profile.
Signage
Why not put up a 'We're passing on the VAT reduction' sign on your front windows, doors, reception desks, elevators, etc.
Menus and Price Lists
Why not show the price reductions on your menus and price lists. Add a sticker 'We're passing on the VAT reduction'.
On-line
Why not add a banner to your website 'We're passing on the VAT reduction' and a note to your e-mail footer.
Special Offers
Why not use this opportunity to communicate with your customer, to let them know that you are passing on the VAT reduction, how it will impact them, and while you're at it, let them know of a special offer you have that encourages them to contact you. You can do this through a mailshot, e-mailshot, flyer, blogpost etc.
See this VAT rate reduction as an opportunity to generate more business and to build your profile. Pass on the reduction, and engage with your customers.
Wishing you every success.
How are you using the VAT rate reduction as an opportunity in your business? Please share in the comments box below.
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