The Cost Of Retailing
As you the reader are no doubt aware the country is facing rising inflation and costs rising, already in the region of 10% inflation is hitting other goods besides fuel and food.
The fact of today's economics are that if fuel goes up in price, then everything else follows, because we are a national and global market.
Like you, I have seen my domestic bills rise.
I have the added dimension that overheads at the shop are also on the increase, at the moment these increases have been absorbed, by the profit margins.
This last week I have had notification that electricity into the shop is rising almost 3-fold from £27 a month to nearly £90 a month.
A major supplier has hit all independents with a 5.8% increase in trade prices, with no increase in RRP, which means a cut of 3% in already tight profit margins.
There is no doubt that other wholesalers and manufacturers will follow suit, (Hornby started cutting margins to the trade years ago, which meant that small independents like myself could no longer warrant stocking it).
In real terms 3% isn't that much, it represents 7p on the present sale price of a pot of paint that is now £2.55.
In short what will happen is, as stock of consumables like paint, washes, glue etc are re-stocked, they will have to be sold at RRP, this I feel is better than hitting you the customer with an increase of the boxed products, which would amount to £'s not pence, and would be far more noticeable on your pocket.
I will try to maintain the discount structure on boxed products as long as I can, whilst keeping an eye on the rest of the market and how other outlets are responding to this massive inflation.
Thank you all for your business in the past, I hope we can continue to do business together for many years to come.