OPINION: The price hiker's guide
Vivid boss, Nick Austin looks at an inevitable price rise and its effect on the industry.
Nobody likes price increases, that’s for sure. However, the combination of unfavourable macro economic factors that have hit manufacturers recently is quite unprecedented in the past 30 years.
Currency depreciation of 22 per cent year on year, coupled with Chinese cost increases across last year averaging 15-20 per cent have meant that anyone importing an item for £1 in January 2008 is paying £1.45 for the same item now.
Add domestic cost increases on freight, energy costs, advertising costs and salaries to the mix and you have ‘the perfect storm’ with serious destructive capability.
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