Rift Amps prices rising 20% from 01st July

docbaker

Quoting from the website ...

"From 1st July 2017, Rift Amplification will be VAT registered, meaning 20% will be added to the cost of your amplifier/repair.

The good news is that if you place an order by 30th June, then you won't have to pay the VAT."

They are quite pricey already, but worth it I believe, my tweed is being delivered in mid-June.

RiftAmps

Yup, it's true. The victim of my own success.

It does mean that some amplifiers will become far too expensive and I might have to drop them from my lineup, whilst others will now be closer in line with the competition. I'm going to try and swallow some of the increase if I can on some models, but unfortunately not possible for all.

Still, with my current lead time at a staggering 22 weeks minimum, it might just help bring that down.

fretmeister

Gassage might buy one now.

dindude

Congrats on your success, it's well deserved. Am I wrong though, starting to pay VAT doesn't mean a straight 20% on the price in real terms, as you also now get to claim back the VAT you pay for parts. Not trying to be a dick, just my understanding is that you are essentially now a VAT man collecting it on behalf of HMRC, but the principle is that you are only really paying it for your labour / margin. Still a big uplift mind, just not 20%. 

richardhomer

fretmeister said:

Gassage might buy one now.

Let's hope they increase VAT after the election - that way he'll save even more....

RiftAmps

dindude said:

Congrats on your success, it's well deserved. Am I wrong though, starting to pay VAT doesn't mean a straight 20% on the price in real terms, as you also now get to claim back the VAT you pay for parts. Not trying to be a dick, just my understanding is that you are essentially now a VAT man collecting it on behalf of HMRC, but the principle is that you are only really paying it for your labour / margin. Still a big uplift mind, just not 20%. 

Yes, it does mean that some of the parts that I purchase will be cheaper for me as not paying VAT, but many of my suppliers aren't VAT registered, so no savings from them.

Also, I now have to factor in the huge increase in accoutant fees for quarterly VAT returns and the extra paperwork to boot.

mgaw

RiftAmps said:

dindude said:

Congrats on your success, it's well deserved. Am I wrong though, starting to pay VAT doesn't mean a straight 20% on the price in real terms, as you also now get to claim back the VAT you pay for parts. Not trying to be a dick, just my understanding is that you are essentially now a VAT man collecting it on behalf of HMRC, but the principle is that you are only really paying it for your labour / margin. Still a big uplift mind, just not 20%. 

Yes, it does mean that some of the parts that I purchase will be cheaper for me as not paying VAT, but many of my suppliers aren't VAT registered, so no savings from them.

Also, I now have to factor in the huge increase in accoutant fees for quarterly VAT returns and the extra paperwork to boot.

the Amps were too cheap anyway..if the US boutiques can charge £2k plus then surely you can charge more..

fretmeister

Do your own vat return. It's piss easy.

jpfamps

RiftAmps said:

dindude said:

Congrats on your success, it's well deserved. Am I wrong though, starting to pay VAT doesn't mean a straight 20% on the price in real terms, as you also now get to claim back the VAT you pay for parts. Not trying to be a dick, just my understanding is that you are essentially now a VAT man collecting it on behalf of HMRC, but the principle is that you are only really paying it for your labour / margin. Still a big uplift mind, just not 20%. 

Yes, it does mean that some of the parts that I purchase will be cheaper for me as not paying VAT, but many of my suppliers aren't VAT registered, so no savings from them.

Also, I now have to factor in the huge increase in accoutant fees for quarterly VAT returns and the extra paperwork to boot.

Wouldn't you be better off in the flat rate scheme?

jpfamps

mgaw said:

RiftAmps said:

dindude said:

Congrats on your success, it's well deserved. Am I wrong though, starting to pay VAT doesn't mean a straight 20% on the price in real terms, as you also now get to claim back the VAT you pay for parts. Not trying to be a dick, just my understanding is that you are essentially now a VAT man collecting it on behalf of HMRC, but the principle is that you are only really paying it for your labour / margin. Still a big uplift mind, just not 20%. 

Yes, it does mean that some of the parts that I purchase will be cheaper for me as not paying VAT, but many of my suppliers aren't VAT registered, so no savings from them.

Also, I now have to factor in the huge increase in accoutant fees for quarterly VAT returns and the extra paperwork to boot.

the Amps were too cheap anyway..if the US boutiques can charge £2k plus then surely you can charge more..

If the US boutique makers aren't relying on the UK market to make a living however.

I suspect if they were there wouldn't be many of them.

RiftAmps

jpfamps said:

Wouldn't you be better off in the flat rate scheme?

We did look at FRS, but in my situation the benefit was negligible.

fretmeister said:

Do your own vat return. It's piss easy.

I plan to eventually, but can't risk falling foul of something in the first year.

uncledick

Any cheap accounts package on a pc will sort out your vat return for you.  Some accountants have freelance people who will come to you and get you started.  As others have said, unless your suppliers aren't registered, it's only the labour which will really make a difference.  Besides, all the pro guys on here will claim it back in any case.

thebreeze

I feel lucky to have been able to have picked up a Rift amp which was for sale on here.  It really is a great amp and from my experience your success is richly deserved.  

I have to admit that when I was looking at amps to buy generally the pricing was an attractive part of considering purchasing a Rift over a Fender or a Marshall say.  I may be wrong but it seems to me that Rift amps were/are "homages" to classic amps which have been popular over time and at different times.  It will be a different decision if the amps are all at comparable prices.  Having said that, the amps speak for themselves and you may even find they increase in popularity because the new pricing will identify them as high end, and quite rightly.  Maybe this is why some of the American boutique producers go for developing a distinctive and individual look/style?  

earwighoney

RiftAmps said:

 Yes, it does mean that some of the parts that I purchase will be cheaper for me as not paying VAT, but many of my suppliers aren't VAT registered, so no savings from them.

Also, I now have to factor in the huge increase in accoutant fees for quarterly VAT returns and the extra paperwork to boot.

Chris, 

Do you have an accountant?  I was speaking to my dad (he's one) and he was saying some things about VAT that I didn't really understand but the core aspect I took away was along the lines of you wouldn't really have to raise prices by 20% to begin with, less so.  If you don't have an accountant and if you need me to pass on a few questions to my dad, send me a PM! 

fretmeister

RiftAmps said:

jpfamps said:

Wouldn't you be better off in the flat rate scheme?

We did look at FRS, but in my situation the benefit was negligible.

fretmeister said:

Do your own vat return. It's piss easy.

I plan to eventually, but can't risk falling foul of something in the first year.

The flat rate scheme has changed quite a lot this year. Most annoying to me.

I got my accountant to provide me with a spreadsheet and a lesson how to do it properly. Now I do the work and email it to him and he charges me about £20 to check my figures.

RiftAmps

earwighoney said:

Chris, 

Do you have an accountant?  I was speaking to my dad (he's one) and he was saying some things about VAT that I didn't really understand but the core aspect I took away was along the lines of you wouldn't really have to raise prices by 20% to begin with, less so.  If you don't have an accountant and if you need me to pass on a few questions to my dad, send me a PM! 

I do have an accountant, yes, but thank you for the offer

I'm currently going through all amplifier models and working out the new prices, but in order for me to maintain the same margins, the majority will end up 18-20% more expensive.

hotpickups

Damn I should have bought one when I had the chance

fandango

hotpickups said:

Damn I should have bought one when I had the chance

You can still benefit from the VAT exclusive prices up to 30th June ... so you've got 4 weeks to make up your mind ...

hotpickups

fandango said:

hotpickups said:

Damn I should have bought one when I had the chance

You can still benefit from the VAT exclusive prices up to 30th June ... so you've got 4 weeks to make up your mind ...

No money  plus I already have two amps 

fandango

hotpickups said:

fandango said:

hotpickups said:

Damn I should have bought one when I had the chance

You can still benefit from the VAT exclusive prices up to 30th June ... so you've got 4 weeks to make up your mind ...

No money  plus I already have two amps 

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