Npt exactly scaremongering as there are enough serious problems with the current Brexit situation

...but the CEO of Tesco is being somewhat disingenuous about the hike in food prices quoting in some instances 40% due to tariff.and the BBC have headlined it

The reason I say this is Firstly he chose, as an example a group of foods i.e. speciality French cheeses (Brie I think it was) as an example. Dairy carries one of the highest tariffs in the range (around 35% I believe. )

Moreover people are not told that the tariff applies to the import (wholesale prices) and cheeses often carry 80-100% markup by the time they reach the customer.

For example Wholesaler £50 retailer 100% markup = £50 £ 50 profit
Tariff applied 35% Wholesaler £67.50 retailer charges £140% (claiming 40% tariff) £72.50 profit

Notwithstanding overall fixed running costs staffing etc etc which applies pre and post Brexit

To maintain the same level of profit pre tariff it the true increase to the customer would be around 17,5% increase NOT 40% i.e. £117.50 and increase to the customers of 17.50 %

That is bad enough I admit, but two further points. Most items do not carry anywhere near that level of tariff and also some tariff for products from non EU countries where we have to apply it due to EU rules will no longer apply. As a net importer though a weaker pound does not help and even for exports, where we import raw materials that carry additional tariffs it can negate in part, cheaper prices for our exported goods.

I am concerned though that some major retailers may seek to exploit customers using 'change' in supply chains and the the application of tariffs with excessive price increases using them as a smokescreen to increase their profits.

 

Not a classic match last night but a great 3 points , well done to the lads !

 

Would you make any changes to the starting 11 for the weekend or stick with same as last night?

 

But a profit margin is exactly that!

if their business plan is built on a certain profit margin, why would they reduce that because the wholesale price changes?

well they might feel that’s the right thing to do, but equally they might not, the decision would be business based though (including staying competitive).

The point is that it’s not scaremongering to report that some food prices will rise if we have to trade on WTO terms. And it ought to be pointed out that rises in food prices will hit the worst off more than the rich.

If my food bill goes up by 20%, it’ll mean very little difference in the grand scheme of things, but I know a lot of people for whom it will be a significant change.

 

il simplify.

Man votes for brexit then 4 years later expresses concern he’s getting shafted.

 

I'm not concerned that retailers will seize such an opportunity, I'd be absolutely gobsmacked if they didn't.

 

Sun. Lit. Up. Lands.

 

Popcorn delivery due , I"ve ordered extra , this could be another long boring thread which has never been discussed before & I am not scaremongering !

 

With respect DR you have misunderstood my post ...my examples were that 40% claimed increase in tariff would NOT be maintaining the current profit margin. In the example (simplistic I admit) an actual 35% tariff if the retailer passed a 40% hike would increase their profit margin significantly. whereas the actual increase in the retail price required, to maintain the current margin, would be 17.5%

IMO (and I have nothing to back that up) I believe a 20% hike in food bills is a overly pessimistic. That said anything in the 5%,7.5%, 10% range would put an intolerable strain on many budgets especially post Covid.

You are 100% correct IMO in stating that an increase in basic food prices has a far greater impact on people on low wages or with little left over at the end of each week/month. Not sure how many of those people would be tucking into French Brie . Slightly OT I was lucky to be brought up at a time when my mother had experience of making a little go along way, was a great cook and even when working I found cooking a release and also how you could make really great meals with very cheap ingredients and even leftovers from the previous day. Sadly domestic science was phased out in schools and most people do not have much idea how to use many cheap ingredients without needing too much time to prepare them in an already busy day when both partners work. many cooking programmes and online recipes with pro chefs etc don't exactly help.

 

Oh dear! What are you talking about? Who is "bairnin"?

Just because you cant be bothered to read, or are incapable of comprehending what I posted, you resort ,like many if teh 'intelligensia' on here, to turning it into a personal attack. In actual fact, like Donny-Red, a hike in food prices will have little or no impact on me. I was expressing concern that those less fortunate should not become victim to excess profiteering from retailers under the smokescreen of 'tariffs' and be a ware that the percentage increase caused by tariffs does (should) not equate to the retail price

 

COYR

 

Another one. Can you read & understand the OP or could you not be bothered, so resorted to turning into a personal jibe. (see post #11 above)

 

COYR

 

So you admit food prices will go up after Brexit

Nice to know you also realise most non basic foods are out of reach of poorer families and will become even more unaffordable as their weekly basic shop is due to rise at least 5% ( Tesco's figure...Raab claimed not to know when asked this morning).

 

Are there any that will be cheaper? If not, why are we doing this ? Said it a thousand times, but I'd love someone from the Brexit side to explain to me some concrete benefit to the citizens of the UK.

 

Give me concrete proof remaining in the EU will be of benefit to the UK citizens. Youi cannot.
Obviously it is not black and white as most people seem to think (particularly on here).

However my decision was NOT based on the relationship and membership as it is (pre Brexit) .. if it had been I would have voted remain. Whilst I do not have a crystal ball I genuinely believe that the EZ will fail and cause chaos and division in the EU itself. Even the architect of the Euro has stated this WILL happen sooner rather than later.

So, an analogy, I am on a cruise ship, merrily sailing along, no worries until the iceberg is spotted too late and cannot be avoided. I abandon my comfortable cabin and end up in a lifeboat rowing away from the ship to avoid being sucked down by the undertow as it goes down.

Yes it is an analogy but far more relevant than those who compare the EU to Gym club memberships, no pay no access. No Gym club I know of charges some members (Germany, France UK etc) fees but actually pays other members to get the same facilities as those who have to pay. In reality UKs net contribution was due to rise in the next budget period significantly.

Since no one can predict the future I admit I cannot guarantee the future as I believe it will play out. However , by the same token the doom merchant predicting catastrophe short, medium and long term cannot know either. Change is inevitable. It just depends on whether people choose to believe change is bad or choose to believe change is for the good

 

If you sell on Amazon, there are so many unanswered questions. We pay a subscription to sell on there & are charged a percentage of the sale price too. A lot of these things are what happens in a monopolistic free market. I see no guarantees with no deal, even deal ?

 

What do we think our starting XI will be Saturday? Helik back in the side?

 

I am on a cruise ship, merrily sailing along, no worries until the iceberg is spotted too late and cannot be avoided. I abandon my comfortable cabin and end up in a lifeboat rowing away from the ship to avoid being sucked down by the undertow as it goes down.


Unfortunately, the ship’s captain is in command of the lifeboat. He has drunk all the water, eaten all the food and is drilling holes in the boat to prove it can’t sink. In the sea around me are sharks. Somehow, I wish I’d taken my chances on the ship.