Thursday, March 09, 2006

Six percent of what?

OK, you circulators out there, what are y'all going to do about a 6% GST?

How many magazines use tax-inclusive subscription prices, and (of those who do) how many of you are going to reduce prices from (say) $19.97 to $19.78 so the customer gets their measly 1%? How many will find they can postpone a subscription price increase by an additional few weeks or months because that 1% of extra subscription revenue will come in handy? What will we do with all this extra cash that the government thinks will trickle down to the taxpaying consumer?

And how many magazines still have tax-extra subscription prices (e.g. $19.97 + GST/HST/QST)? Do your order forms also spell out the tax-inclusive price (e.g. $21.37)? What will you do if you have mega-inventory of some pre-printed order forms or letters that refer to 7% GST? Pitch them and reprint, or just hope nobody notices?

What other impacts should we all be thinking about? Discussion begins now, in the comments area. Click away and let's get this party started!

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