McAfee U-turn on VAT cut

 

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By Barry Collins

Posted on 27 Nov 2008 at 17:48

Security software company McAfee says it will pass on the VAT cut to its customers, after initially ruling out a price drop because it would be too expensive.

As we reported earlier today, McAfee sent out a statement to its affiliate partners claiming it wouldn't be adjusting its prices for the new VAT rate.

"The cost to McAfee of updating its internal systems to reflect the change in UK VAT is such that the company would have been forced to increase the prices at which consumers purchase security solutions from the McAfee online store," the company claimed.

However, the company's now had a change of heart and has told PC Pro that it will indeed pass on the VAT saving after a "period of consultation" with its partners.

The cost of adjusting the website prices "is nothing like what we initially believed the costs would be," Sarah Whipp, vice president of marketing at McAfee, told us this afternoon.

However, she claimed the company had to consult with its retail partners and affiliates before deciding on new prices. "If we just take the straight 2.5% off you don't get a very nice, emotional price point," she said. "The issue is what we do we move to - whether it's 2.5% off or a bigger percentage."

Whipp wouldn't confirm how long the consultation would take, but said "we're not talking a period of months."