Brexit Plans - Take Eat Away
Brexit - Our plans
We are trying to be as honest as possible.
Whether you agree or disagree with the UK's planned withdrawal from the EU in October 2019, we as a business have tried to plan ahead. As a business we have always tried to plan several years ahead, however the uncertainty is not good for any business, as we cannot plan ahead like before, as no one knows what is going to happen towards the end of 2019.
As with any planning, there is a cost to business in terms of hours spent working on projects and also the financial cost to stock pile and storing of excessive stock, then there is the burden of exploring all options, including moving all or part of the business out of the UK. At this time, the EU is a large part of our business and we have many customers throughout Europe. Do we absorb these costs or do we add some to the retail prices?
The main consideration for us a business is our European sales and also the Pound/US Dollar exchange rates. We import most of our products from the Far East and the EU and make purchases in US Dollars. Since the Nation voted to leave the EU in 2016, we have seen the US/UK exchange rates reduce by around 25%. This means our product cost prices have risen by 25%. We have held our retail prices as best we can, however in the long term this is not a sustainable business model and we could well see our own retail price increase of 25% to 35%. A no deal Brexit is expected to see further reductions in exchange rates and therefore there is the potential to see our retail prices increase by 50%.
We are also seeing a general rise in cost prices of around 10% across the board. One of our products which retailed at £14.99 in 2016 is now selling for £19.99. A no deal Brexit could see this increase to £24.99 or more.
We are still developing new products and are very much planning for the future, however we are putting less into development and more into warehousing, stock piling and Brexit planning.