1. Win The VAT Back At Lovehoney!

    Win The VAT Back At Lovehoney!

    Alistair Darling is trying to give the economy a big stimulus by reducing the rate of VAT from 17.5% to 15%. But we've got a better idea!

    No matter which side of the political divide you're on, it's hard to imagine that chopping the VAT rate by 2.5% is going to have a major effect on consumer spending.

    In the context of Lovehoney's already low prices and incredible free delivery, we don't think individual customers would notice the savings if we reduced prices by tuppence ha'penny here and half a groat there.

    Under the new rules, our best-selling Jessica Rabbit 2.0 Vibrator would sell for £24.46. Can you get excited about an extra 53p off when it's already £20 cheaper than a similar rabbit vibe in the high street?

    And we'd have to pulp the 120,000 magazines we've just had printed because all the prices would be wrong. Not very green, is it Darling?

    We're not the only ones who think so. Simon Wolfson, the chief executive of Next, wrote in a letter to The Times: "The change will be administratively expensive, do nothing to stimulate demand and leave few feeling any better off."

    Too right, Simon.

    So the bad news is we're not going to reduce our prices. BOOOOO!

    But good news is we're going to do something better! HOORAY!

    We're going to let one lucky customer Win The Vat Back!

    Here's how it will work:

    In December, we're going to put all the money that individual customers would have saved if we have reduced our prices in a big virtual pot.

    Over the course of the month (our busiest of the year!), the pot will grow to be a rather tidy five-figure sum.

    And in January, one lucky Lovehoney customer will win the whole lot!

    Now that's what we call a stimulus, Darling!

    To be in with a chance of winning, all you have to do is create a Lovehoney account and join the Lovehoney Loyalty Scheme.

    Good luck. And Happy Christmas!

    Small Print

    No purchase necessary. Employees of Lovehoney and Lovehoney's agents cannot enter. The winner will be drawn at random from all eligible Lovehoney loyalty scheme members. The winner will be notified by e-mail by 15 January 2009.

    Click Here To Win The VAT Back!

    Comments (4)

    • Scotty: December 03, 2008 09:40
      But what about the VAT saving throughout 2009 !!.

      Lets do the math. You expect the VAT reduction to be a 5 figure amount during December, your busiest month. So that is at least £10,000. Lets imagine that Dec is 20% of your yearly business. So for the 2009, if you pocket the VAT reduction rather than reducing your prices - Lovehoney will make an extra £50,000 in profit - well that is fair - NOT. Come on Lovehoney, don't treat your customers as stupid - we all know VAT has gone down, so a. we expect prices at unusual price points (not the normal x.99, x.95 etc) and for everyone with a printed magazine, they can have pleasant news if they make a purchase and find the price is slightly less. If you have magazines not yet distributed, just put a sticker on the front explaining the pricing. If you put your prices down, but just simply always rounded up to the nearest 1p or 5p, then just the penny rounding would pay for the stickers and the few hours it would take to change the VAT rate parameter in your website. Go on Lovehoney, do the right thing.

    • Richard: December 03, 2008 10:20
      I totally agree with Scotty, I do feel like this is a massive slap in the face for use. I think lovehoney should have a look at what Sainsburys is doing for the vat reduction, which is give everyone a 2.5% reduction off the final price, this means that the magazines are still up to date and the prices on the web do not need to be changed.
    • Oh Purleease: December 03, 2008 18:12
      2.5% is nothing, to tide LH over until the next magazine a prize will be fine, get a life scotty and dick! im sure you have the odd 50p to gamble!
    • LoveHoney Richard: January 02, 2009 13:14
      We're not treating anyone as stupid Scotty, we've been very clear about what we've been doing.

      We think our customers are intelligent enough to work out where they can get the best value when buying sex toys online.

      LoveHoney offers free delivery on all orders, Deal of Day, sale bargains, 3 for 2s, multibuy savings and all-round low prices.

      And of course a no-quibbles returns policy with freepost address.

      By not reducing our prices to account for the 15% VAT rate, you could say we've effectively put all our prices up by 2.1% - even though the prices that customers pay are the same as they were under the old VAT rate...

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