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Jonnybegood

Inflation A Real Concern

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A couple of examples from last week

Was going to buy a new set of wardrobes and other pieces for the bedroom before Christmas but decided to hold off until the sales that never really came, So phoned up last weekend to order the same wardrobes we seen before Christmas.

Order processed £1560 thank you.

Phone call on Tuesday bedroom furniture has increased by 5%, So I say yeah go ahead with the order still want them etc.

Then on Friday a very apologetic lady, sorry the bedroom furniture has increased another 5% blaming increased manufacturing costs and delivery costs, the furniture is made in a factory in Sheffield and they are just passing on the costs from increased raw materials etc.

I cancelled the order, but it seems to have gone up everywhere so no other option but to pay the extra 10% (£156).

I have an ISA returning 6.5%, so this rise wipes out a large part of this years interest.

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The cost of my new garage has increased 3% due to materials and the cost increase of copper electrical cable, an extra £250 there.

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Finally to top it all my return flights to Toronto next month have risen by 3% again blamed on increasing oil prices, read the T&C and they are entitled to do this up to a max of 5%.

Last week has cost me almost £500 extra, it soon starts to eat into the interest gained on any savings

I am now considering taking out a fixed rate loan at and buying everything I need now to finish off the house before I pay anymore than I need to.

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If the order was actually processed at £1560 then that's what they have to sell for. Once you've agreed to buy at a specific price they've agreed to sell at that price. Now you've cancelled it's too late, but keep it in mind for future reference. If they have a problem with rising costs they should hedge themselves by quoting a price that they can guarantee will still be economically viable when they actually fill the order.

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And on the opposite tack, and reinforcing the inflation figure fudging, the new model laptop I am buying is the same price as the old one is now (odd marketing strategy) and I found a generic 10% off e-voucher so it's costing me less than the old one.

And the reason I found this is because Comet, Staples, PC World etc all seem to have tightened up a lot on their returns policy and what counts as defective in their book and so I was scared of getting lumbered with crap Made in China stuff. As an FYI - the distance selling regulations allow for a 7 working day no quibble return so effectively bypassing the draconian 'you bought it, it's yours so go send it for repair under manufacturer's warranty' approach the big chain shops have now.

TFH

Edited by Tin Foil Hat

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Out of interest, Declan on BBC is actually running a slot RIGHT NOW about how the real inflation rate is a Northern Crock of Sh1t!

I nearly choked on my cornflakes! His paymasters don't want to see this!

Well done Declan (for once).

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Guest KingCharles1st
Out of interest, Declan on BBC is actually running a slot RIGHT NOW about how the real inflation rate is a Northern Crock of Sh1t!

I nearly choked on my cornflakes! His paymasters don't want to see this!

Well done Declan (for once).

The reason Declan is running it is because HE is feeling it too- only someone totally removed from the real world (ie the giggle twins) wouldnt feel the heat of rampant inflation knocking on their door right now.

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The Govt are more concerned about peoples expectations of inflation than the real rate of inflation. Assuming this is correct what reasonable conclusion can be drawn?

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We need a bit of inflation to help incomes come more inline with asset values. I don't think our HPC will be as bad as everyone predicts, inflation could become the main driver in returning the UK to an affordable income to house price ratio.

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The press are so far behind the curve it is laughable.

Wait till they realise the reality of what inflation will do to an already obscenely over-expensive country. If they think there is just a problem with the stupidly over-indebted going bung wait until they put two and two together and work out the repercussions of say half to two thirds of the country driven to the point where essentials and basics wipe out their income. Discretionary spending will be banjo'd, the millions working in the peripheral non-essential service trades will be utterly sidelined. And the country STILL won't be able to compete with Asia, or even many parts of Europe in producing goods.

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I own a furniture company. Retailers are having a bad time of it in general. I am an online retailer and to increase profits i have to lower prices, on the high street they tend to increase the prices.

The difference in price is staggering, my type of furniture i sell for around 500 something the highstreet sells for £1500.

It all comes down to cost of the overheads. The furniture stays the same.

I looked into a shop in chester and it was about £60k for 2,400sqft and 30k rates with bills thats 100k in costs.

I would have to sell 5k a week before i made a penny and thats without any staff.

That sums up retail at the moment and business in general you have to work a lot of hours to pay other for people who dont both public sector (through Taxes) and private (rents etc).

General public though who dont know about furniture tend to just look a price and think the more expensive it is the better, but the item is only 20% of high street costs when selling a furniture product.

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I own a furniture company. Retailers are having a bad time of it in general. I am an online retailer and to increase profits i have to lower prices, on the high street they tend to increase the prices.

The difference in price is staggering, my type of furniture i sell for around 500 something the highstreet sells for £1500.

It all comes down to cost of the overheads. The furniture stays the same.

I looked into a shop in chester and it was about £60k for 2,400sqft and 30k rates with bills thats 100k in costs.

I would have to sell 5k a week before i made a penny and thats without any staff.

That sums up retail at the moment and business in general you have to work a lot of hours to pay other for people who dont both public sector (through Taxes) and private (rents etc).

General public though who dont know about furniture tend to just look a price and think the more expensive it is the better, but the item is only 20% of high street costs when selling a furniture product.

When I see the adverts on the box for the `Hurry Now - Sale Ends Soon` I have to laugh:

1. The `sale` seems to be never-ending.

2. If a furniture retailer can sell a quoted "£999" sofa for half price and still make some kind of profit, then that would imply that they were ridiculously overpriced in the first place.

In fact, all the adverts do is say: "Look at me, I`m a rip-off merchant, but I`ll be your friend for a limited period!" <_< (Add some washed-up soap actor to lend an air of credibility to the proceedings) :P

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Industry standard is 3.5 .

So 200 sofa plus VAT would retail for 761, round up £799.

Then in a sale you put it to £499. and can say 40% off.

Profit is still around £250.

The people who buy from me tend to be fairly wealthy. I sell high end furniture but they know its 30% of the high street prices and wealthy people tend to be much harder to sell to. They are also always bartering even though the price is low. This is proberbly why they are successful and wealthy.

for the likes of MFI, DFS, IKEA etc etc its simple,

'a fool and their money is easily parted'

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Guest absolutezero

1. That inflation calculator is the most useless, crap, difficult thing I have tried to use in years.

Who wrote that? They should be shot.

2. Under the mortgage heading it calculates annual depreciation. That wasn't there last time I looked (albeit months ago).

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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