Trade Is Down

[gfromls]

I run a small property maintenance business in Yorkshire, we have been busy since day one (June 2000) but this month trade is down by 60% - never happened before.

Another point – some of our suppliers are now adding a “raw material surcharge”

of about 9% to our invoices “due to increased cost of metal & oil at the source” they say that their cost have rocketed over the past 18 months and they have tried adsorb the rises, but now they have no choice but to pass them on..

this is a rock solid business with no debt, but I must admit – the outlook looks……crap.

Just wondering if everyone else was suffering.

[jonpo]

raw materials surcharge ? this is a result of the negligence of the Bank of England only targeting CPI and not raising interest rates to target PPI in which inflation is RAMPANT. not really their fault as they are straightjacketed by their purpose.

this means that low interest rates have resulted in a huge inflationary boom in real resources. as the Bank of England has not bid up the price of money. producers have bid up the price of resources. this will end in the only way it ever has in a real resource crunch where prices are too expensive to continue production and demand falls as a result.

tut tut tut Merv. could do better. give the doves a slap and tell em to buck up their ideas.

Fed is doing the right thing though. 5% here we come

[BuyingBear]

Don't worry I'm sure the 9% surcharge will be accurately represented in the CPI figures. What do you again, hopefully something to do with selling DVD players?