Quick, there's a recession, almost a depression, I've had a great idea.......
04 March 2009, 12:00 PM
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Quick, there's a recession, almost a depression, I've had a great idea.......
............let's put prices up!
Ford, and GM, then the japs, Sony, Nikon, Canon etc, now the brewers, Carling and Carlsberg for a kick-off.
People have less to spend, they are making less profit, so they bang prices up.......they deserve to go to the wall.
Ford, and GM, then the japs, Sony, Nikon, Canon etc, now the brewers, Carling and Carlsberg for a kick-off.
People have less to spend, they are making less profit, so they bang prices up.......they deserve to go to the wall.
04 March 2009, 12:15 PM
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You can see why they are doing it but they really have no idea that people just aren't buying new cars, new cameras and the only thing people really want from Sony comes bundled with most phone contracts these days.
04 March 2009, 12:24 PM
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There are lots of reasons to put prices up in a recession unfortunately: Less people buy goods so the cost of production is more expensive and that is all the way down (or up) the supply chain, they sell less so need more profit per item to keep people in jobs etc...
In addition there is an exchange rate problem at the moment for the UK, although recovering slightly.
Steve
In addition there is an exchange rate problem at the moment for the UK, although recovering slightly.
Steve
04 March 2009, 12:28 PM
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I think you will find it has more to do with the current exchange rates.
If Ford UK for example pay for their cars/parts in euros, then obviously, 5000 euros now costs them quite a bit more than in used to (in sterling). So they have had no choice but to increase prices. Otherwise, they would end up making a loss on the cars that they do sell. I know for a fact that Peugeot UK dealers only have 11-13% to play with on new cars. If the currency you buy in weakens by 25%, you're screwed.
If Ford UK for example pay for their cars/parts in euros, then obviously, 5000 euros now costs them quite a bit more than in used to (in sterling). So they have had no choice but to increase prices. Otherwise, they would end up making a loss on the cars that they do sell. I know for a fact that Peugeot UK dealers only have 11-13% to play with on new cars. If the currency you buy in weakens by 25%, you're screwed.
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04 March 2009, 01:00 PM
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Inflation. Look it up. Have you seen the prices in the supermarket as well?
News report today saying pay in the private sector was deflating as well.
We're screwed.
News report today saying pay in the private sector was deflating as well.
We're screwed.
04 March 2009, 01:24 PM
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It's funny how they'll soon put up the price of imports when the exchange rate is poor, but when the pound is strong they don't lower prices.
The exchange rate argument is b*llocks, they made more profit than normal when the rate is good for them, they didn't build a roof while the sun was shining.
The exchange rate argument is b*llocks, they made more profit than normal when the rate is good for them, they didn't build a roof while the sun was shining.
04 March 2009, 01:29 PM
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It's funny how they'll soon put up the price of imports when the exchange rate is poor, but when the pound is strong they don't lower prices.
The exchange rate argument is b*llocks, they made more profit than normal when the rate is good for them, they didn't build a roof while the sun was shining.
The exchange rate argument is b*llocks, they made more profit than normal when the rate is good for them, they didn't build a roof while the sun was shining.
Companies still had be competitive when the rate was better.
04 March 2009, 03:04 PM
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I didn't say it did. But you would be surprised how small the margins are these days. Everyone has got to make a living.
What would you say is a decent % profit for a company to make every year then?
What would you say is a decent % profit for a company to make every year then?
04 March 2009, 03:15 PM
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1.8% on XX billion is very nice thankyou.
1.8% on 50k, well sell up and do something else.
04 March 2009, 06:55 PM
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It's funny how they'll soon put up the price of imports when the exchange rate is poor, but when the pound is strong they don't lower prices.
The exchange rate argument is b*llocks, they made more profit than normal when the rate is good for them, they didn't build a roof while the sun was shining.
The exchange rate argument is b*llocks, they made more profit than normal when the rate is good for them, they didn't build a roof while the sun was shining.
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