hi there
fuel price knock on, this will always end up being pased to your customers irrespective of whether they are domestic or commercial, you must have the courage to do this, as you need your business to sustain itself.
we have already seen food prices increase, a recent report claims they are up approx £600 pa, add to that the energy pric increases, then houselds are starting to feel the pinch.
in the past they would then stretch the plastic, to aborb the increase, but now that credit is starting to contract, then the effects are felt even more.
hey presto, large payrises are demanded, and then industrial action.
inflation is up, house prices down, interest rates are reduced/increased to control inflation, there used to be correlation betwen the two, recently that has been broken the LIBOR rate remains high in proportion, and credit deals are now costing more.
the government thinks that £50bn will help banks to reset their mortgage business, more like £100bn requirement to do that.
the pound has weakened so much that the migrant population, who everyone thought were not too clever, are now moving back out of the UK as the advantage is no longer there for them. the thruth being that there will be a hell of a gap if they all leave.
now is the time, to stay solid, and deliver they quality service/product to the client/customer, and instead of cutting back on selling activity, seling activity needs to be increased to maintain turnover.
credit clients should be managaed so that exposure is limited, if thery dont pay, stop service, you'll be amazed how many clients pay their bill when the toilets start to stink aftera couple of days.
inevitably raw materials will increase in cost, and therefore your sales prices will also have to be adjusted.
good trading
regards
martin sales
