Quietly last month, Apple put up most of its prices in the UK. Undoubtedly this related to exchange rates. This time last year, spending $1000 would have cost £649. Today (31/10/16), that spend would cost around £820, a 26% increase.
The two models we most often use for iPad till installations are the base specification iPad Air 2 and iPad Mini 2 These have risen from £291 to £316 and £183 to £199 respectively ex VAT. We've also seen prices rise on receipt printers, cash drawers etc and have tried to minimise the effect on our own prices.
All seems like doom and gloom but is it all really bad? We work with retailers and hospitality businesses and tourism is booming. Not only are record numbers of people visiting the UK with their wallets at the ready but UK tourists are opting for "staycations" to avoid the dreaded Euro. All of this is seriously good news for us in SW England and S Wales where tourism is more important to us than in any part of the country.
If this carries on as we head towards Brexit, 2017 looks like a very exciting year indeed for tourism. Have you got the right POS system in place to be busier than you've ever been? All of a sudden, £27 more for an iPad doesn't seem so bad.
Here's the real irony. If a New Yorker goes into the Apple Store in 5th Avenue, they pay $434 for an iPad Air 2 after unrefundable sales tax. If, however, they choose to have a great holiday in the UK and pick up the same item at the store in Bath, they'll pay £379 and get £63 back in VAT when they leave. That means they've spent a total of £316 or $384 at current rates. No wonder flights to the UK are selling faster than ever!