short version : prices on ALL of our models will be going up at the end of this month. Any orders placed along with a deposit before 1st March will be secured at the current price. In other words, if you’re on the fence, get your order in!
Long version : we were hit with price rises at the start of last year that had a knock on effect, meaning we had to increase our prices at the end of 2016. We managed to keep this to a couple of the affected models and the rises weren’t too big.
Since about the end of last summer we’ve seen ridiculous price increases on virtually everything we buy, labour costs and transport costs. Most of what we buy, we purchase in either US dollars or Euros, the graphs above illustrate the direction currency is heading for us, especially in the past year or so (Brexit anyone?). So even if the published costs of the goods from our suppliers hasn’t gone up, the actual cost to us has. Very little of what we buy is in Sterling and since most of our customers are here in the UK and pay in Sterling, that leaves us very exposed to currency fluctuations.
There are ways to mitigate against this. The most obvious one is to allow our overseas customers to pay in Euros or Dollars and we use that cash to pay our Euro or Dollar bills, thereby avoiding any exchange rate issues. On the surface, this works. However, because of the cheap pound, our products are actually very attractive to overseas customers once they factor in the exchange rate (our weak pound helps them). If we were to allow them to pay in USD or Euros, we’d lose a lot of customers (approx 30% of our sales go overseas) as our products would then start to look comparitively expensive.
Aside from currency issues, we’re seeing general costs increasing on top of this. Labour costs in Asia (a substantial amount of components are coming to us from Taiwan) are increasing year on year. Transport costs (shipping parts around the world) are getting more and more expensive everyday, this has a big effect on us.
And of course the goods that we buy here in the UK are often either imported from overseas or are manufactured from raw materials from overseas, so even though we’re buying those in GBP, those prices have gone up too.
Putting prices up is never a good thing but we need to be realistic and we need to make sure we can run a profitable company to enable us to continuing employing people and investing back into the company. The business needs to be sustainable so we can continue to make great products here in the UK. Thanks for supporting us.