Wiggle exchange rates email - am I nuts or are they?

FrankGrimes

Got the following in a promo email from Wiggle this afternoon trying to push sales based on the beneficial exchange rate for Euro spenders. That's a fair enough marketing ploy but is it me or are they totally off with their example?

With GBP-EUR exchange rates in your favour you can now take advantage of the strong Euro at Wiggle with effective savings of over 26%. £50GBP used to cost €64 in October 2008 & now only costs €46! That's before any of wiggle.co.uk's many discounts off the list price!

If they're selling Sterling at a rate of €46 buys £50, I think I'll take em up on their generous offer but methinks they have this backwards somehow!

scottreynolds

FrankGrimes wrote: »

Got the following in a promo email from Wiggle this afternoon trying to push sales based on the beneficial exchange rate for Euro spenders. That's a fair enough marketing ploy but is it me or are they totally off with their example?




If they're selling Sterling at a rate of €46 buys £50, I think I'll take em up on their generous offer but methinks they have this backwards somehow!

I can't understand it either.

zzzzzzzz

FrankGrimes wrote: »

Got the following in a promo email from Wiggle this afternoon trying to push sales based on the beneficial exchange rate for Euro spenders. That's a fair enough marketing ploy but is it me or are they totally off with their example?




If they're selling Sterling at a rate of €46 buys £50, I think I'll take em up on their generous offer but methinks they have this backwards somehow!

When I checked earlier the exchange rate was around £0.93 to €1. I think they're wrong but they've got nothing to lose from you buying something - you'll be buying it at the actual exchange rate (on your credit card or through paypal which won't be as good as .93)

stuf

saw that today and they have got it arseways

would be very wary of anyone offering to accept payment in Euros as it means that they're making something with a less favourable rate.

Wiggle used quote in Euro if you wanted, but the charge would go through in GBP - the implication in this mail is that they would take the money in Euros.

It's just occurred to me that they might be doing this by setting up euro accounts to pay their irish vat bill but I'd still be wary of the rate they use.

zzzzzzzz

aidan.offbeat wrote: »

When I checked earlier the exchange rate was around £0.93 to €1. I think they're wrong but they've got nothing to lose from you buying something - you'll be buying it at the actual exchange rate (on your credit card or through paypal which won't be as good as .93)

Sorry - I'm wrong. Got the same email and they say they're accepting yoyos. Sounds like free money. THE MORE YOU SPEND, THE MORE YOU SAVE! WOOHOO!

Ryaner

Email had the prices wrong. The website also uses 0.885 sterling per euro which is less than you'll get from a credit card. http://www.corporate.visa.com/pd/consumer_services/consumer_ex_results.jsp?from=EUR&to=GBP&rate=0.02

blorg

They have it a bit arseways all right. They charge in GBP anyway, I just leave it in that and work it out myself, as online I am almost always comparing GBP to GBP anyway. A lot of stuff (Shimano especially) has gone WAY up in England in the last few months too, doubling or more in cases!



That trough around Christmas mind saw me get three new bikes

72hundred

Does the differing VAT rates come into this?

FrankGrimes

I thought they had got it messed up alright.

I'd stay away if they were forcing me to make payments in Euro as I know they'd be skimming a few percent off it and I no likes that. If I still have the option to be billed in GBP, I'll stay with them and I think they will be offering that.

Yep, loved that trough at the end of December, still brings a smile when I think about the bargains I had!

Aquos76

I hate the way the charge the Irish VAT rates for items shipped over to here, there is no way they are passing it on to the Irish government.

stuf

Aquos76 wrote: »

I hate the way the charge the Irish VAT rates for items shipped over to here, there is no way they are passing it on to the Irish government.

If they weren't paying VAT here there would have been no reason for them to make the website changes that they made to cater for them passing the cross-border threshold - the website changes alone would have cost a lot of money and the extra cost to the customer just reduces their attractiveness to the Irish market.

I don't think it's that easy to commit tax fraud and get away with it - especially not in a company that's so visible.

blorg

The tax thing is an EU regulation that Wiggle have complied with and other unnamed retailers have not, it is quite clear and obligatory if you do over a certain amount of turnover.

Aquos76

blorg wrote: »

The tax thing is an EU regulation that Wiggle have complied with and other unnamed retailers have not, it is quite clear and obligatory if you do over a certain amount of turnover.

Wasn't aware of that, I though we could buy anything we like from within the EU once we paid the country of purchase vat rate.

They are in the minority that comply with this rule when it comes to online cycle store, because they are the only one that I have used in the UK and N Ireland that charge the 21.5% Irish rate. I have used CRC, PBK, Mcconvey, Ribble, and Planet X, and it has always been the UK vat rate applied to my checkout price.

blorg

that used to be the case but is not any longer (actually since 2003 or so.) Wiggle in fairness are compliing with an EU law that is not strongly enforced (yet)- if you do over a certain amont of business you have to charge local VAT. Amazon do the same.

Aquos76

blorg wrote: »

that used to be the case but is not any longer (actually since 2003 or so.) Wiggle in fairness are compliing with an EU law that is not strongly enforced (yet)- if you do over a certain amont of business you have to charge local VAT. Amazon do the same.

Yeah, I knew amazon and QVC did it alright.

Ryaner

Quite a few of the computer and electronics stores have started doing it too. The only plus side (for me) is I've been able to buy lots of stuff without the hassle of claiming VAT back as they are allowed invoice VAT free now once you supply a valid vat number.

zzzzzzzz

Ryaner wrote: »

Quite a few of the computer and electronics stores have started doing it too. The only plus side (for me) is I've been able to buy lots of stuff without the hassle of claiming VAT back as they are allowed invoice VAT free now once you supply a valid vat number.

I didn't think that was a new devlopment - if you're buying something from abroad they shouldn't be charging you VAT. i.e. You can't claim back VAT you pay to the English tax man from the Irish tax man