The Effects Of Vat On Email Marketing

The question as to how the rise to 20% VAT will affect email marketing is one that concerns us all. You will, no doubt, be wondering if subscribers will abandon your email lists in their droves. There are so many predictions of gloom that you cannot help but think that one at least might be right.

The predicted Christmas bonanza for high street shops failed to materialise. The interim figures tend to suggest a drop on last year's. The anticipated sales rush was also a disappointment. It too failed to reach the levels of twelve months before, let alone compensate for the Christmas disappointment.

Where did all the buyers go?

Provisional figures tend to indicate that the predicted increase in online sales was delivered. If anything it seems as if email marketing confounded the downturn and produced better figures than expected. However, there must be concern over the 20% VAT rate.

You will be wondering how to market the increase in prices. After all, you do not want to put off those on your email lists. There are a number of options. Let us look at four.

Twenty per cent is a big figure. Many people will not think along the lines of percentages but work out that for every £20 they will pay an additional £4. That is nearly a quarter. To instil confidence you need to emphasise 2.5%, the increase in VAT.

In email marketing we deal in precision so let us do so in this case. The actual percentage rise is a bit under 2.13%. Or, to put it another way, a little over 2. In a few short bits of logic we have reduced the headline figure to a tenth. Or, better still, it is ten times smaller.

This is almost as good as having money in your pocket.

Another option is to state you will absorb the increase. You might feel you will have to justify this claim. You could mention that you have reorganised in some way, purchased in bulk or even sacked your father. What you cannot do is put up your prices as this will soon be noticed.

You could absorb the increase and then show that you have, in fact, reduced the price. If, via email marketing, you offered a product at £100 before the VAT increase and maintained that price you have 'reduced' it by a fraction over 2%. Not a headline grabbing figure it has to be said, but one that would benefit from being included in any other offer.

The final option is to ignore all mention of the increase. There is so much on domestic news, newspaper leaders, business sections and down the pub that any more might be seen as too much.

How refreshing will those on your email lists find it if you continue to market in the way that has worked so well in the past? Email marketing is increasing its share of the market because it is cheaper in any case. You have every reason to be positive.

By: Breanna Cameron

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Breanna Cameron is a freelance author who has vast knowledge in email marketing and email lists. For more information on email marketing, please visit: www.wizemail.co.uk