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First post brexit price increase
Just had a price increase from one of my suppliers. The brexit vote and subsequent devaluation of the £ has been blamed. Wonder how long before others follow suit?
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13 Replies
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I’m surprised it’s taken this long tbh
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We’ve recently had a price increase on HP consumables from PaperGraphics.
Also had some paper price increases from other suppliers, all blaming Brexit and the depreciation of sterling.Can’t help but feel that Brexit is getting blamed to simply condone uneccessary price increases…?!
I’m sure if someone took the time to investigate, then there’s been little impact on the products companies are actually increasing prices on.
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Not really:
fuel has gone up 15% since June,
import anything in dollars and it’s 25% more expensive,
import anything in Euros and its it’s nearly 30% more expensive. -
quote Peter Wynne:We’ve recently had a price increase on HP consumables from PaperGraphics.
Also had some paper price increases from other suppliers, all blaming Brexit and the depreciation of sterling.Can’t help but feel that Brexit is getting blamed to simply condone uneccessary price increases…?!
I’m sure if someone took the time to investigate, then there’s been little impact on the products companies are actually increasing prices on.
I really don’t think any of these increases we’re seeing are unnecessary – infact I would say most UK distributors and their Global suppliers are holding back as much as possible. The only areas that would be excluded from any impact would be if the manufacturer can source all raw material within the UK, manufacture and convert within the UK and then sell within the UK.
However virtually all SAV sold within the UK is manufactured in Europe or the US. Since the start of the year we have seen the pound drop in value by over 25% against the Euro and around 22% against the US Dollar.
If the manufacturer 3M (Germany & US), Avery (Holland and Germany), Orafol (Germany), MacTac (Belgium), Arlon (US) etc sells in UK £ sterling then they are receiving that percentage less everytime they sell into the UK so they have to raise their pricing. If we the distributor purchase in Euro or Dollar then every time we pay and convert at todays currency we are paying that 22% to 25% more than the start of 2016
Trust me these increases are genuine and between the manufacturers and the distributors we have delayed (hoping for an improvement to the currency slide) and not passed on the full impact of the pricing fluctuation as most of our customers could not handle such significant increases during a 12 month period.
Brexit truly has created this and regardless of who your supplier is eventually these increases have to be passed on or the supply chain wouldn’t survive.
I don’t think we have seen the last of these increases into the market as the current increases I have seen go no way close to covering the true cost of currency fluctuation.
Stuart
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But will the prices go back down when the pound recovers???
Call me cynical but I doubt it.
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When is the £ likely to recover though? 2 years of uncertainty until brexit happens then x amount of years after that? It may not go back to previous levels for a very long time, if ever. We’ve been looking at buying quite an expensive bit of equipment and the price increase since the vote has been staggering.
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quote David Hammond:But will the prices go back down when the pound recovers???Call me cynical but I doubt it.
I have to agree with David here. If and when the pound recovers will the prices decrease?
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I do think there are other factors involved too, we can’t blame it all on brexit. The new minimum living wage will also have some impact on everything we buy. Thos nearer the bottom of the wages food chain have all had their salaries increase, therefore the UK manufacturers / importers will have to at some pointincrease prices to reflect costs.. then of course the wholesalers and retailers will have to increase the costs in turn, tus we are back to square one where the cost of living rises and wages are again falling behind….
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Although is it a bad thing if ‘instant gratification’ is curbed? There was a time when we really had to work hard to achieve or buy something. I sound old now but it is far too easy to consume these days.
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This is the problem of allowing manufacturing in the UK to die and sourcing from EU made so easy
Kev
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quote David Hammond:But will the prices go back down when the pound recovers???Call me cynical but I doubt it.
You are right, prices never go down.
When pounds recovers?
This time, that will take a while IMO. -
And… prices go down for HP inks today, small decrease but welcome …. 😆
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I wouldn’t expect the pound to recover anytime soon, in fact I would say it will fall further next year if the EU are going to make an example of us (cutting off the nose to spite the face).
Some say the pound has been 10-20% over valued for sometime now so what your seeing is a correction, albeit uncomfortable for people like us who buy imported goods. The price will just have to be passed on to the customer which will squeeze peoples pockets further.
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