Brexit Devaluation

This morning the £ has dropped to US$1.2382 and I thought it would be worthwhile re-releasing an article we penneed back in November 2016.

Following the POST BREXIT result the £ dropped catastrophically and in a few days its value had dropped by 16%. At the time of writing the Pound is now worth 1.16 Euros and 1.24 US $. Most of the catering equipment in the UK is sourced from Europe or countries which use either the Euro or the US $ as currency. This means that ALL ware washers and dishwashers without exception and most other catering equipment have either gone up in price already, or will do within the next couple of months

European manufacturers with UK price lists such as Hobart, Hobart UK, Classeq, Winterhalter, Miele and few others have already put their prices up by 10% or more.

When these prices hit the market will depend on what happens with Distributors and the following factors:-

  1. The stock distributors hold at Pre- Brexit prices
  2. Distributor foreign currency reserves at the Pre-Brexit prices
  3. Distributors negotiating power with suppliers

The bottom line is that stock of equipment and foreign cash will be almost depleted in most distributors and the manufacturers in the UK are bigger than 95% of UK distributors and so hold the power to force price increases through.

So large price increases to the market i.e. YOU are inevitable.

What this means is that if you can buy at Pre- BREXIT prices then well done and snap the hand off that offers you this deal. It will not be sustainable for much longer.

 

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