In the weeks running up to the referendum I was asked to write a comment piece for a trade magazine on the likely consequences to this business of BREXIT. I didn’t end up writing the piece, partly because of writers block, partly because I was preparing for the consequences of BREXIT.
In the few days before referendum there was a small peak in the value of the pound as the markets expected GB to stay in. I thought otherwise and invested heavily in Euros. Sure enough, two days later the will of the people said out. In the following days the £ has fallen sharply – a massive 13%.
This means one thing for the catering market, sharp price increases and soon for most goods. The reason being for this that most capital equipment is sourced outside of the UK. There will be other distributors which have either invested in Euros or have large stocks they have bought at pre- devaluation prices. The bottom line is that that cash and stock will be finite and so distributors will be either absorbing the cost pressure in the short term to gain market advantage OR they will be passing on price increases. Dishwashers Direct have large stock reserves so that we can offer Dishwashers, ware-washers and others essential catering equipment at existing prices. But, we can only guarantee this for couple of months. So my advice is if you have any intention of buying capital equipment before Christmas, avoid the inevitable price increases which WILL happen across the market. And buy now.written by David Teasdale