Online stores such as Wiggle, DSG (Dixons, Currys, PC World etc), Comet were quick to pass on the VAT rate (Amazon took a bit longer) - this was simply done by either the buyer typing in a coupon code or (as in DSG's case later on in the week) the coupon/voucher code was automatically applied at the check-out. This was good, but it did mean that you could not use another coupon code in conjunction with the new VAT rate. I'm waiting for Monday when their systems (hopefully) should be updated so that the main price reflects the new VAT rate and I can use a different coupon code to get even further savings.

Prices are not dropping by 2.5%; only the VAT element is.

In the case of that Jabra headset, the ex-VAT element is £50 / 1.175 = £42.55 at the moment. Once VAT is 15%, the price including VAT will be £42.55 x 1.15 = £48.94, a saving of £1.06, not the £1.50 you state.

... saving of £1.06, not £1.25 [rather than £1.50]

- all a bit frazzled......