Brexit effect.

[skipdiver]

Went to order some birch ply yesterday from Howarth Timber, who order it in from Arnold Laver. Got my card out to pay and the counter hand said i will have to ring you on Tuesday with the price when Arnold Lavers is open again. But you have the prices, i bought some three weeks ago says me. It will have gone up in price since then like everything else has, so i don't know what to charge you until i speak to them as prices are rising daily and not by small amounts either, says he. Far eastern ply is set to go up 10 to 15 per cent and timber prices will soon follow suit.

Anyone else finding the same?

 

[clk230]

Thing go up , things go down . This was happening with metal prices not that many years ago .
When anything goes up in price now it just seems that everyone jumps on the bandwagon and blames Brexit !

 

[morfa]

Not so sure about timber prices, but I work in IT and we buy a lot of kit for American companies and the increase has been about 20-25% over pre-Brexit vote prices. It's having a big effect on the IT industry. Lots of cancelled projects.

 

[skipdiver]

Thing go up , things go down . This was happening with metal prices not that many years ago .
When anything goes up in price now it just seems that everyone jumps on the bandwagon and blames Brexit !

It was the staff that blamed it on Brexit, not me. I just wanted to know why it had gone up by a significant amount in the last three weeks. Timber products have gone up alarmingly over the last few years. I've had all sorts of reasons why prices keep on rising. Transport costs, production costs, VAT rises, pay rises, interest rates, exchange rates, the fluctuating pound, you name it. Funny how changes never bring prices down isn't it?

I now have to decide whether to pass these rises on to my customer or suck them up.

 

[Peter Sefton]

Most of the tools we import are from America, the exchange rate has moved by around 11% against us meaning we should increase our prices by about 8 - 9 %.

We have not actually changed our prices yet, we have had the busiest month ever, so post Brexit business is good. We are going to see how sales go before making any quick decisions but I don't see much change happening in the exchange rates anytime soon.

Our margins have been squeezed but our turn over is higher, it will take a few months to see how this works out for us.

Cheers Peter

 

[Random Orbital Bob]

That's interesting Peter....do you think people are "panic" buying worrying about future rises or is the work load high and full order books driving the purchasing? Its nice to hear but its got me thinking about the drivers. You must have picked up the vibe from customers, what's your thoughts on this?

 

[tomatwark]

Hafele's prices are going up next month, and timber is already starting to.

The new wide belt sander we bought last month would of been about £1000 dearer if we had bought it this month, hopefully once things settle down with the exchange rates things will even out.

 

[heimlaga]

Lots of prizes are going up in Finland too...... and to my knowledge we haven't left the EU yet.

Brexit probably made some of your prizes jump a couple of percents but I think it is an ongoing trend which was just speeded up momentarily. The consumption party is over and you just walked out the pub door........ and because of many years of drunken hybris we are in for one hell of a hangover whenever we leave the pub. Staying there and drinking on credit doesn't help.
The hangover will probably not end before we have had a proper cleanup both in finance and in politics all over Europe and replaced the present system with a new better one.

 

[Doug71]

I buy Accoya from Lavers, that has gone up £200m3 over the last 2 months, they say European oak gone up more. My door supplier gone up 7% and a lot of ironmongery 10%, they all blame Brexit.

Doug

 

[rafezetter]

Call me a cynic but I wonder how many of the price increases we have seen are actually "real" because of real changes since the brexit vote, and how many are people just taking advantage of the trend to increase prices without feeling any extra pinch? That way if they have the room, they can then lowr prices again if it has a negative effect, but profit now.

To be honest if I were in a similar situation of facing actual material cost price increases I would put your prices up now while this trend is ocurring rather than wait it out and then try to do it and face some possible backlash - right now it seems everyone is doing it, so those who must; should.

 

[Peter Sefton]

That's interesting Peter....do you think people are "panic" buying worrying about future rises or is the work load high and full order books driving the purchasing? Its nice to hear but its got me thinking about the drivers. You must have picked up the vibe from customers, what's your thoughts on this?

It might be that people have decided the world hasn't come to an end, we don't know the answer yet.

It could be some customers were buying from America directly before, hoping to get a better price, some customers have done well and some have had their fingers burnt in the past. Maybe Brexit exchange rates have tipped the scales and it's no longer perceived as cheaper to buy from countries with the Euro or Dollar and customers are shopping at home, I think our european sales are also up.

Cheers Peter

 

[Eric The Viking]

Anyone remember decimalization? Similar excuse for price rises.

Our exchange rate has shifted, to favour exports rather than imports, but, as Peter says, by nothing like what we are seeing in retail.

As a starting point, I'd shop around a bit.

 

[Phil Pascoe]

Decimalisation was an excuse for downright robbery, and this is heading the same way. Of course when all is said and done comparative costs of goods will alter - but that's years away.

 

[Rorschach]

There are some genuine prices rises I am sure but everyone loves a good excuse to bump them up higher than needed.

 

[tomatwark]

From a business point of view even though the prices of things have gone up, and I have been pricing to allow for this and also allowing a small amount for future increases between getting the job and doing it ( which I expect to some extend is what other companies are doing as well) we have work coming in all the time, a lot more than a couple of years ago.

The impact of this, is because I am not sure what is going to happen, I am paying over time to my staff instead of taking additional staff on.

Which if things were not quite as up in the air with Brexit and also for us a possibility of Scotland leaving the UK would be the case.

 

[RobinBHM]

I had the same thing recently, I rsng a local merchany for softwood studwork prices, when I questioned the high prices.....well its due to brexit Sir.

I then rang another merchant, prices had increased just 3p per metre.

Hardwood prices go up and down like a yo yo anyway, so I dont take much notice.

 

[skipdiver]

Just had a call from Howarths and the birch ply is going up by an incredible 35%, with a further 20% rise expected. The 4mm was the same price as they have some old stock but the 9mm has risen by £6 per sheet + VAT. This is confusing to me as that doesn't equate to 35%, so i imagine they are somehow cashing in on current stock and the big rises will come when the new stock arrives.

I was also told that stocks are running low and next time i order, there could be a wait until after Xmas, so to get my order in now. So do i order and stockpile or take my chances as my orders come in? Are others stockpiling before increases, leading to shortages?

I took over the orders of a retiring woodworker 6 months ago and spent ages working on my prices and set up, investing in new tools and machinery. This has thrown a massive spanner in the works as most of my outlay is for birch ply. Looks like i'm now going to have to raise my prices to my customer or take the hit myself. As if it isn't hard enough making a living as a woodworker.

 

[Eric The Viking]

At list ring round to see if you can find an alternative supplier.

Unless there is some other factor affecting supply, it's nothing to do with Brexit (which hasn't happened anyway, and won't for at least five years, at this rate).

I'd also contact your MP, as this sort of behaviour deserves some publicity!

 

[tomatwark]

I would certainly get another price.

Go to someone like Meyer Timber who are sheet material suppliers instead.

Also are you just dealing with the guys behind the counter or the rep, if not speak to him a bet he can offer you a better price.

The counter staff at a lot of places only have the authority to give a certain amount of discount otherwise they would give to much to Joe public and the occasional tradesman who normally uses another firm, where as the rep or the branch manager will be looking at developing longer term business with you.

 

[skipdiver]

I was in the middle of something when he rang and the line wasn't that good either, so i will need to pop in and have a word when i have more time. Been using them ever since they opened, god knows how many years now and am on first name, friendly terms with all the staff, so i already get the top discounts.

They sourced my first batch of ply from Meyer in Leeds and it turned into a nightmare with delivery, so i complained and they got the next batch from Lavers, which was quite a bit cheaper but not as good quality. It is BB/BB and the Meyer stuff is B/BB, although it was still good enough for my needs. Luckily, i only need a couple of sheets to stock up on the ones i use most of but when i go for a full order, think i'll need to shop around again, which i'd already done when i set up. He did say that they now use the Stoke branch of Meyer because of the delivery problems they had with the Leeds branch. Sounds daft to me as it's the same company.

Either way, those rises seem extortionate to me, so will have to investigate further.