I think a 5p a litre change is both likely and affordable.Originally Posted by Unheard Of
It is doing what I want. Company A tries to pull a fast one, Company B says no I don't think so, consumers adjust.
I think a 5p a litre change is both likely and affordable.
It is doing what I want. Company A tries to pull a fast one, Company B says no I don't think so, consumers adjust.
That would be the Randblade explanation for it; simple and wrong. Like always.
The reality is that company A is a multi-national producing and selling its products in 190 countries, wanting to make a profit on those products. Company B is a retailer also hoping to make a profit while trying to stay in business as the likes of Lidl are eating away its market share and its profit margins are razor thin. Company A doesn't just sell one product at a time to company B but a package of products which are priced in a way so that the products in the package - on average - are profitable. This means some products are internally evening out the less profitable other products which company A still wants to have on offer because it makes the complete package more competitive. Now, with a drop of the local currency of almost 20% against the currency in which the majority of raw materials are priced in an overall rise of the package with 10% is outright moderate for company A. They are no doubt absorbing some of the rise in costs on the expense of their profit margins.
Company B can't afford that 10% though because it has no buffer to absorb it with and would have to pass on the rise in prices on to the consumers. Which would probably mean those consumers won't buy the products through them any longer. It's a no-win situation for company B. Whether they have the products on their shelves at higher prices or not at all; they won't be able to move them at a profit.
Nobody is trying to pull a fast one or calling anyone's bluff. It is just an example of industry adjusting to a new reality; which is that the UK does become poorer from a collapsing currency.
This would be Randy's cue to state that he doesn't need coffee, chocolate or foreign fruits and that Brexit is just Brilliant.
Last edited by Hazir; 10-13-2016 at 10:32 AM.
Congratulations America
Very much this.
And next week we can expect the proposal for a Independence Referendum Bill in the Scottish Parliament.
Randy : I don't like the Scots to start with and they can go screw themselves or their filthy sheep.
Congratulations America
It's the Welsh who shaggy sheep, get your prejudices straight. The Scots can go drink themselves into a whiskey induced stupor and fight each other in Glasgow.
Politically it makes sense for Scotland to be independent as I have said for nearly a decade here since it first arose. Economically it now longer makes sense post Brexit.
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