America is on SALE!

Discussion in 'Off Topic Discussion' started by GekiDan, Oct 5, 2009.

  1. GekiDan

    GekiDan
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    Discount and bargain lovers here should love to hear this good news. According to this news, America will have a wide sale throughout the states. From bags to clothes to sports goods up to gaming gadgets, almost all items have already cut prices.

    As for my knowledge, since I took up economy in high school, it's a good move since the US is in recession, people tend to save their money for more important items or wait for a price cut to get more value to their money, and the more money circulating the country, the higher the chances of strengthening the economy and surviving or getting out of recession.
     
  2. Sahil

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    Hey GekiDan,

    Thanks for sharing the news. That's good that America is having some sale in recession period. You have chosen the tile very good, it tells that "America Is On Sale" I thought that Russia will buy it soon. LOL :D

    Nice One.:)

    Thanks
     
  3. Fergal

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    It's good to see prices coming down like this. Unfortunately it took a disastrous recession to make it happen. Now is a great time to be buying, for those that can afford it.
     
  4. Adam

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    Wow its good news for you then, its anoying that it wont happen in the UK for a while! Dam credit crunch.
     
  5. Fergal

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    Lots of Irish people (mostly women) travel to the US to do their Christmas shopping every year. They'll pick up real bargains this year, especially as the Dollar is so low against the Euro. Unfortunately many of them won't have as much money to spend due to the recession here.

    Has the recession not resulted in sales in the UK as well?
     
  6. Adam

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    With some smaller businesses, its resulted in them closing down ie going bankrupt as they cant cope with the bigger giants who drive costs down in order to keep customers happy. However Ive seen that some shops are still managing to cope but only by offering discounts otherwise the consumers will not be buying from them. I have also heard that people do not have much money to spend on high end goods and therefore thats why most high end goods are cheap to buy due to this. Also businesses are bringing in a cheaper line of goods in order to make quick sales.

    Tesco are a good example of this by offering "Technica" as a brand compared to giants such as LG, Samsung and Panasonic.
     
  7. piatraelfa

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    Do you think they will get out of the recession by doing this?
    No, all the way!
    How could you get out from a problem like that when the taxes you have to pay are actually huge? That is why the president asked for low taxes from now on.
     
  8. Fergal

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    Taxes can be a huge obstacle for business. The UK government has been quite proactive in this regard and they have cut VAT rates to help businesses survive the recession. It's about survival at this time, companies will reduce their prices just to maintain some sales and keep their heads above water until the recession is over.
     
  9. ginahinderliter

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    lol...interesting title. Wish I felt the effect of this.
     
  10. freedirectory

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    wow i thought that USA is for sale and i want to buy it for 10$ :D if any body is selling USA for 10$ send me pm with details

    good luck :)
     
  11. GekiDan

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    I really do hope they will also cut the VAT costs here in the Philippines. Congressmen and Senators want the vat to be back on 10% from the current 12%. But it is taking them a long time, they are all talks, no work. They even prioritize taxes on text messaging...:mad:
     
  12. Fergal

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    VAT cuts can help. They make it easier for consumers to start buying again. Economies need consumers spending to stimulate growth.
     
  13. seanstevens

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    This move by the UK government was not more than a cheap party trick to get voters on their side. It has been a complete disaster for businesses in general and has cost many of them more to implement that they will save. The UK government only reduced the rate by 2.5% for a limited time; in January 2010 it will go back to where it was.

    It has meant that many small businesses had to change all of their prices on their literature at their own costs, have any software they used at the point of sale updated at their own cost just make the Government feel better about themselves.

    The recession in the UK has been bad, but at the end of the day the major reason why most companies go out of business is because they are not managed correctly. When an economy is good companies can float along nicely thinking things are great, without really knowing everything they need to know or with processes not working to full capacity. As soon as a recession comes those companies are exposed and they fail. Most people then blame it on the "credit crunch".

    Woolworths for instance had been failing for 2-3 years, the credit crisis just finished them off. They went out of business due to bad management (my opinion, not the opinion of Business Advice Forums or its owners) when they started getting into lines of business that they really were not set up for. As soon as Zaavi went bust it was only a matter of time before Woolworths followed them as they were reliant on the CD/DVD merchandise.

    Many small business owners are great at selling but not great at managing their cash and they wrongly believe that cash = profit. They do a lot of sales, make a lot of cash and then panic when the tax man comes calling for his share months later. This puts them in a position where they are fighting against the tide for months and years and as soon as a recession hits where the sales dip they go under. They also make the mistake that getting one large customer is the end of the story and job done. They place so much energy into this customer that they don't really worry about the rest. If that customer is hit by the recession then again, the small business is the one that ultimately pays the price.
     
  14. Fergal

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    Thanks for your informative reply Sean, nothing like the opinion of a native with real business experience. I can see how the fall in VAT would have resulted in some costs for businesses.

    Businesses in Northern Ireland got a lot more sales because of the VAT reduction. The Irish government took the decision (in their infinite wisdom) to increase VAT rates at about the same time. The result was that lots of Irish people started travelling North to do their shopping. The increased VAT differential, combined with the reduced value of Sterling made travelling across the border more and more worth their while.
     

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