Anyone know or care if this latest deal from Tesco is correct?
I just watched their TV advert which made two claims as far as I could see.. that they were cutting prices on some ranges by 20%... and that these items would then be VAT free..
The graphic they use and one of the prices is shown below for your consideration:
So as you can see, a PS3 has reduced from £245 to £199.
20% of £245 is of course £49... so if something is reduced by 20% from £245 surely that means it should go down by 20%?? So it should be £196 by that logic?
You could say well maybe they are working with the before VAT prices.. in my days in retail you could do that with business customers but not normal retail ones... needing to show and talk about all inclusive prices with normal retail customers.
So, say they were working with before VAT prices anyway...as maybe the way that is looked at has changed since my time. The £245 price was actually £204.17 plus VAT at 20%.
So, if you reduce the £204.17 price by 20% you get £163.34 as your new price before VAT, and after adding the 20% VAT on you get £196
So.. my question is... how can they make their claims and charge more than £196?
I'll be happy to hear if I've mixed something up... or if they have? All ideas welcomed!