Discounts vs taxes

I was able to attend the Wind Up watch fair in Chicago and attempted to buy a couple of watches from vendors. One of the vendors quoted me the suggested retail price for a watch and offered a $175.00 show discount which sounds good. The problem is that they agreed to collect all of the local taxes for the state of Illinois and the city of Chicago. That turned out to be $225.00. If I can order it online without tax at full retail price from their website I will save $50.00. Has tax ever changed your decision to buy a watch? What kinds of tax(VAT, Luxury, etc.) do you have to pay where you live?

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Generally, I look at the total overall price when buying, but there are other factors that can come into play. If I were in your situation, I would look at the purchase as a souvenir of the event and  would be less likely to be concerned about the extra $50.

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Yes, though I’d be careful quoting anything publicly. Depending on state, including NJ, you have to report purchases made out state and settle up at the end of the year via Use Tax.

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VAT is definetly a parameter for me. Everything outside EU ( Japan, US, GB) ad up 25% in price.

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caktaylor

Generally, I look at the total overall price when buying, but there are other factors that can come into play. If I were in your situation, I would look at the purchase as a souvenir of the event and  would be less likely to be concerned about the extra $50.

I like this perspective. I too was at that fair and I bought a Citizen Promaster Orca very spontaneously (which is super unlike me). I love the watch and I'm glad I have it as it gives me a new brand and movement (eco-drive) to the collection all while being a very competent diver that I can simply pick up and go whenever I want.

That said, the spontaneous nature of the purchase was bugging me because it's so out of character and the watch wasn't on my radar at all. But framing it with the "this is a memory of that event" actually gives the watch a lot more cache for me than it had previously. It makes the purchase way more justifiable.

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AllTheWatches

Yes, though I’d be careful quoting anything publicly. Depending on state, including NJ, you have to report purchases made out state and settle up at the end of the year via Use Tax.

As a business owner in the peoples republic of New Jersey I have sent the watch company a copy of my sales tax exemption certificate.  Upon receipt of the wrist watch I intend to wear it and put it up for sale as used merchandise.  I will be asking $2000.00 plus tax more than I paid for the watch.  When someone buys it, NJ will get the tax and I'll have enough to buy a new one. Should it not sell, I will keep wearing it until it does. LOL

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Taxes are part of why I bought a watch before moving from Alaska where there is no sales tax. If you know someone who lives in a low cost state then you can have them order it and pick it up next time you see them. 

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Velomax

As a business owner in the peoples republic of New Jersey I have sent the watch company a copy of my sales tax exemption certificate.  Upon receipt of the wrist watch I intend to wear it and put it up for sale as used merchandise.  I will be asking $2000.00 plus tax more than I paid for the watch.  When someone buys it, NJ will get the tax and I'll have enough to buy a new one. Should it not sell, I will keep wearing it until it does. LOL

That is great!  Well played.

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It's pretty close to 9% where I live. That definitely factors in to my purchase decisions.