Cheap is NOT good?

Now it’s hard time in Europe. Everyday price of “something” is increasing.

(Soon in Japan as well. But CPI in March in Japan was 0.8%. Can you imagine???)

Recently, tourists are not allowed to enter Japan, but under the normal circumstances, foreign tourists are looking forward to enjoy shopping at 100 Yen Shop.

(Almost) every good costs just 100 JPY (approx. 20 CZK).

VAT in Japan is now 10%, so TTL price is 110 JPY.

INCREDIBLE! It can’t happen in Europe.

Now I’m curious what would be the next step by sellers.

Option 1)

Prices rise for the same good

Option 2)

Price is the same but less amount (Shrinkflation, thank you to remember me this! Ms. Sakurako Oshima ,a famous business English teacher in Japan❣️ )

E.g. 8 peaces instead of 10 peaces

Option 3)

The current good will not appear again… so a new good will be introduced with a new name and package!

It’s possible for produced goods, but not for vegetable or fruit.

Options 3 is tricky, but reaction of consumers is not bad. On the other hand, this option is effective for long-term sale, not just for several months.

When I learnt economics and tax system, I thought that increasing VAT is something too easy that every dull country does it.

So now I live in the country where the basic rate of VAT is 21%😅

In Japan? 10%.

In US? No VAT. (There is Sales tax instead, but not the same.)

How to stop increasing prices?

Cut VAT for definite period and let sellers fix prices at this moment.

Pretty easy, but again, not a popular solution.

Another solution for Japanese abroad. Go to Japan with several carriages and buy everything what you need before prices go up!

So any strategies?

#vat

#salestax

#europe

#czechia

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#japan

#us

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#scm

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#百均

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#税金

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#ヨーロッパ

#アメリカ

#inflace

#japonsko

#dph

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