Monday, 9 May 2022 | Graham
Inflationary Pressures on the Cost of Lights
The chief executive of the British Retail Consortium (BRC), recently reported shop price inflation nearly double, "driven by a sharp rise in non-food inflation". This is driven by demand in many home products leading to increased prices as the rising oil costs makes shipping more expensive. As our products are manufactured here in the UK or in Ireland you would think this has little effect, however we are not immune to the significant rises.
Metal prices in particular Aluminium and Brass have risen significantly in the past year, along with shortages and transportation costs adding to the base material rise. The internal light connections and fittings are (regrettably) brought from further afield, again fueling the upward cost. This together with the rise in labour costs has seen the cost of many of our products increase at a faster rate than we have ever seen. Prior to the pandemic, price rises happened once a year at best and by a few percent at most. More recently manufacturers are having to raise there prices every few months, with each delivery of materials bring a new shock.
Clearly they pass this to us, we are trying to keep our costs as low as possible, having reduced staff, through natural wastage not redundancies, and working from home where practical. Nevertheless prices of some light fittings have risen by as much as 45% in some instances in the space of less than a year. We have obviously had to pass some of this on, hence prices have risen. We will continue to limit how much we apply but cannot absorb it all.
We will try and continue to offer discount offers on some products as and when we can.