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That overseas postage dilemma raises its ugly head again


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While SWMBO was not looking, I went on line and pre-ordered a Flying Scotsman with steam (to go with my LNER P2  Prince Of Wales) @ 292 pounds which with VAT off and GST added, came to 268 pounds. Good, free postage. Then they offered me to use my rewards points of about 30 pounds, so I did, but that took me under 250 pounds, so they added on 50 pounds postage. It took me 2 seconds to remove my rewards points and so back to free postage. Obviously that free postage applies to the amount of cash you pay, not the actual cost of goods. Ebeneza is alive and well and living in Hornby Towers

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I'm sure that's a known rule or feature that's been discussed before, certainly when folk were making use of the higher reward point rate in the TT:120 club and trying to balance order postage .v. using reward points.

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That seems to be a general way things happen. I had a voucher from Tesco's at Christmas spend £125 and get £18 off, which I did, but with my Clubcard discounts it came to under. I had to buy a load of toilet and kitchen rolls (high cost items easy to pick up) to push it back up. I am surprised that they give free overseas postage, very many don't, no matter how much you spend.

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Posted (edited)

I think it is fair and clear. Postage has to be paid by Hornby regardless. The points are spent on the products.

Much like when you buy something at a discount. I don't hear people complaining about not getting free postage if the discounted total cost is below the threshold. They simply add something else to the basket to get the total cost over the threshold. IMO it is the same thing.

Edited by HST Mainline
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Not neccessarily, I shop at a supermarket that awards you on money spent with reward points. With a deal of $10 off for every 2,000 points returned, that does not affect the points awared for that purchase as the points awarded on how much you spend, not how much you pay.

Anyway, I have a relly going to UK in a couple of months, so I thought I might use those point and have it posted to his family over there. Is there a minumum spend for free postage in UK.

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Hi Fred

Most every program of this type works on the basis of cash money in the door.  

They are essentially offering a discount when you put money in their hands.  Be it a points reward (you don't earn points when you spend points) or discounted shipping. Its simply a discount, allocate it where you will.  

But it is based on the money in the door.  Not to include points, discount codes, coupons, etc.  For example, if Hornby sells something at ½ price, you pay VAT on ½ price, you earn points on ½ price.  You calculate the shipping charge on ½ price (free or standard).  Not the original list.   If you so happen to discount that ½ price even further with points, everything is based on that newly discounted price.  Not list, not ½ price.

Money in the door.  If you want to include your points, it discounts the cash basis.  

Depending on your tax situation, it is debatable if it is worth it to purchase in the UK.

I understand that the tax situation is different for Australian Buyers.  Australian buyers do not pay VAT, so that is discounted, but there is some sort of Aussie tax.  What is that charge?

In the UK, shipping is either £4 or £0.  The shipping in the UK is negligible. The VAT is not.   When you ship to a UK address or purchase over the counter in the UK, you absolutely must pay VAT.  20%.   

Bee

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Posted (edited)

Yes Bee, They take off the VAT 20% and add our GST which is 10%. We didn't have to pay the GST on purchases from UK under a certain level, BUT, a certain electrical retailer kicked up a stink because he thought he was losing business, Never pay his prices anyway, so he wasn't losing mine, nor most who were frugal, so now GST is added at point of sale overseas, regardless of the cost, even something for $5 from China (post free) they pay 50 cents GST - costs them 10 times that amount to collect it but that is tax offices for you.

Edited by Aussie Fred
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Fred, 

You really want to think about a trip to the USA.  We do not pay VAT.  Instant 20% discount.  There is no offsetting tax like your GST.  The tax is always £0.0.  Yes we do pay £30 shipping.  But, and this is big, the shipping can be less than the VAT!!!!  

Suppose I purchase £150 worth of goods, to include VAT.  Take the 20% off, and add shipping back on.  The total?  £155.

Suppose I purchase a locomotive for £200, inclusive of VAT.  Take the VAT off, add in shipping. The total is £196.67

Suppose I purchase £240 worth of goods, inclusive of VAT.  Take the VAT off, its £200, qualifying for free shipping.  The  total I now pay is £200.

It only gets better, the more you spend. The break even point is exactly £180.  This is when the VAT equals the shipping.

So when do you get here?  I know one guy who could hold your stuff until you arrive, and it would remain untouched. 😉

Bee

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Posted (edited)

Yes Bee, I have a step-son who lives in Maryland, who comes home every couple of years for his 2 week vacation (His boss pays the airfare and car rental) and I arrange for anything I want in US to come with him. But then, my step-son-in-law is a pom and he goes back to visit his family every so often, I will use him for my "mule" from the UK. Unfortunately that doesn't work for pre-orders as who knows when they will actually be available and they don't allow you to tack on extras to those purchases.

Edited by Aussie Fred
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I have acted as go between several times for Hornby purchases destined for Oz and the overall cost delta must have been worth it for the recipient to follow that route.

I also note the vast difference between postage costs from Canada to UK versus the same size and weight parcel going the other way. Canada Post versus Royal Mail International tracked service. Using couriers like Fedex, DPD, DHL, etc really jacks the price up and doesn't necessarily improve transit time.

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