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Well the UK voted to leave although, I still don’t know that everyone who voted knew what they were really voting for and we’re leaving.
Supreme ruler May has now said it’s a “hard Brexit” and honestly, I don’t see that going well but hey, what do I know. All I see is we get control of our borders but it could possibly leave us in financial ruins as prices are already beginning to creep up and have been for a while. It’ll really start to bite now I think as stock is replaced.
Anyways, what I do wonder is how that will affect all the imported stuff in this industry.
We’ve already seen some pretty walloping price hikes on parts, Bosch being one I’ve really noted lately but to be fair most seem to be increasing prices.
If the prices of parts rise, fuel and everyone else as inflation hits 1.6{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} already what do you think, will repairing stuff be more or less attractive as ultimately, repairers will have to also raise prices.
And logically therefore, if you have to raise prices, will you also raise the contract rates?
K.
Re: Brexit Stage Left…
I think that if things go up we in the independent sector cant soak up the rises ,I also think that those that use our services on a contract basis have worked out there figures based on a non brexit basis, which means they cant soak up the increases.
where it will end goodness only knowsRe: Brexit Stage Left…
The ‘problem’ is that GBP has taken hit on the world financial market as a direct result over the ‘short term’ uncertainties over Brexit. However short that short term will be depends on many factors. It could be months it could be years. The outlook for the U.K as a whole is good however not so for the white goods industry as its central core is firmly entrenched within Europe.
The good news is that when GBP once again increased in value, which it will, all will be well. 😀
Re: Brexit Stage Left…
We’ll see.
We’re not out yet. It isn’t over till the fat lady sings and Article 50 is executed.
And I suspect that most appliances will be coming from non-EU states now given most want it out the EU so they can save on labour costs and, a low Pound ain’t exactly a good thing for anyone that exports.
But I cannot for the life of me see how making (supposedly) imported goods more expensive whilst raising the cost to repair through inflation and price hikes here is a good thing for all of us.
K.
Re: Brexit Stage Left…
I’ll be more concerned when jimmy crankie starts her bid to leave the uk. Does she really think that leaving the uk will leave Scotland firmly in the European union/single market? It’s going to be an interesting year,Merkel is certainly in trouble, le penn and Wilders are gaining serious ground, Italy is definitely in turmoil and the European union as it stands is definitely on sticky ground. If only the idiots at Brussels would come back with some agreement about border control and shenzen, then maybe the another referendum is on the cards. I voted leave, and I know exactly what it entailed. It’s going to take a good few years for the uk to recover from it, but it will, how unscathed we are as a business is a different matter
Re: Brexit Stage Left…
Brexit begins? Or is greed going to come in to it as well?
Email from Connect this morning“Hi,
Just a quick update, commencing February, the manufactures below are raising their prices anywhere from 10-20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}
Miele- across whole range
Samsung- across whole range
Sebo- across whole range
Hoover- across whole range
Certain Dyson Parts”Email continues with the usual garb if you want a deal before then just give us a call.
Re: Brexit Stage Left…
Yep, expected really.
So instead of as some might have thought, the price of finished goods rising and repair becoming more attractive financially what you end up with by the look of it is, the status quo at best if not something actually worse. Just the amount involved bumps up.
Zero sum game really.
Just my take of course.
K.
Re: Brexit Stage Left…
So far there has been two price rises of 6{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} at cost on all BSH group finished goods prices.
One price rise so far on Hotpoint and Indesit late last year. Increases varied which makes it hard to estimate an average increase.
DonRe: Brexit Stage Left…
So then in that case it would appear as if spares are increasing more than a new product making things for all of us worse, not better. 🙁
K.
Re: Brexit Stage Left…
Maybe I’m not getting the Maths on this but most the spares I fit are bought at the £5 – £25 mark.
So 20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on that is still far better than 10 – 15{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} on a new machine price…
How do those percentages cancel each other out?Re: Brexit Stage Left…
Proportionally it will be in the repairers favour!
Even though I sell new machines my price will go up but so will John Lewis & AO.
Bring on the repairs!Re: Brexit Stage Left…
Okay so it’s okay that appliance prices rise by half the amount that the spare parts do for the exact same reason being given for the hike?
That’s okay is it?
By that way of thinking Shell could go from £1 a litre to £1.20 and you’d have no problem with that? Even though the currency shift only mandates a rise to £1.10.
Let me think now, if everyone does that and you end up with a 15-20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} hike on all your costs but appliance prices only rise by 5{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d} mhm.. I’m no mathematician but…
K.
Re: Brexit Stage Left…
Will there ever be a positive spin to this thread? It is nice to see that Tim has brought a little rational thinking toward these price hikes. Our job in the repair business is to work round these seemingly irrational hurdles by firstly accepting that prices will always rise when there is a demand and will fall by a similar margin when demand wains. Those at the top of the white goods food chain seem happy to inflict financial challenges on those minions below. We minions (tongue in cheek) should busy ourselves working around it.
Off topic comment : What ever became of idea of reducing the rate of VAT on repairs and servicing?
Re: Brexit Stage Left…
If I saw something positive in it I’d say so. I don’t.
VAT reduction on repairs is actively being chased by a number of people in various walks but, UK Government isn’t exactly falling over themselves to do much of anything as they’re too distracted by somewhat more pressing problems, like Brexit, Trump, terrorists and so on.
And, as they’re under pressure to pump more money into the NHS et all with reduced incomes elsewhere, I can’t see this happening anytime soon.
K.
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