Axminster price increases

[D_W]

Axminster’s un-competitive prices are why they used to be a chain of large units across the UK and now they’re just one small shop in Axminster high street, no wait…

In the states, selling large power tools has generally become a freight and drop ship business only until you get to production equipment.

There's one local place here that sells wmh goods (jet, etc) reasonable but only because they're already there selling multi unit machines the size of a small house.

Rockler and others sell power tools, but not competitively. (+20% vs drop shippers, and I recall a few folks here having issues with machines and stating that it did no good to have bought locally as the store pointed the finger at the manufacturer when it was time for action)

 

[Blackswanwood]

Nah. This is financial naivety. When I was at Oxford Instruments the FD used to buy forward sterling to future proof our prices. It is a trick used by financial institutions all the time - it is the reason your pension fund (if you have one) beats bank rates by a healthy margin.

I don’t really follow your logic here?

My best guess is that the company you worked for hedged currency transactions. Unfortunately there isn’t a magic money tree to do this and is certainly not a “trick” that wards off the effects of inflation. It also involves cost and usually only provides a temporary floor rather than absolute protection.

Pension schemes do hedge their assets against interest rate movements but this tends to be used by final salary schemes as opposed to an individuals pension fund in a money purchase arrangement. Typically pension funds will do better than a deposit rate as they invest in assets which carry a higher risk not because of any “tricks”

If the FD of the company you worked for claimed he could do what you seem to be describing imho he’s either exaggerating or has discovered the financial equivalent of alchemy.

Sorry if I’ve missed your point.

 

[Dutchie74]

Container prices have increased by 5-6 times in the last year from the far east. Road freight from Europe has increased by 50+%… This has an impact on everyone. If they havent had to increase their prices, maybe they were overcharging you before??

You are absolutely right about the shipping cost increase for containers worldwide. There is actually a shortage of shipping containers worldwide. China is now turning the screw on the world. Inflation is about to ramp up everywhere and we the consumer will have to pay for it. Those previously super cheap items from China are now going to cost us dearly. Easier said than done but we need to support our national manufacturers more now than ever before.

 

[ian33a]

It may be wishful thinking on my part, but I would like to see a step change in attitude about purchasing: for too long we have chased the cheapest prices as suppliers, as well as consumers and even at a Governmental level.
Brexit has made certain markets more expensive as imports for us and the Covid pandemic demand has made the cost of freight all that much higher. Maybe this is the catalyst that will turn the UK to look inwardly toward suppliers and pay the premium toward pay and quality rather than paying that premium toward sky high global air freight and propping up other countries economies.

Having a higher disposable income than many people, I guess that my somewhat elite attitude is easy for me to pedal. Rather more difficult for people on the breadline who have little left over at the end of the week.
The trouble is, we probably will have all adapted our lifestyles and expectations based upon what we can afford and with cheap times, possibly, behind us, we all need to recalibrate expectation.

 

[Richard_C]

Yes, I've already accepted that as inevitable. We've had 40 (mostly) good years. Some have struggled on low incomes of course and we must remember that.

The main recalibration is to differentiate between "need" and "want" as we get used to buying less stuff.

 

[Dutchie74]

Yes, I've already accepted that as inevitable. We've had 40 (mostly) good years. Some have struggled on low incomes of course and we must remember that.

The main recalibration is to differentiate between "need" and "want" as we get used to buying less stuff.

So true. I try to buy and use old but good quality British machinery rather than new, cheaper and generally lower quality, throw away Chinese imported stuff.

 

[LJM]

Yes, I've already accepted that as inevitable. We've had 40 (mostly) good years. Some have struggled on low incomes of course and we must remember that.

The main recalibration is to differentiate between "need" and "want" as we get used to buying less stuff.

This is another reason that I’m an advocate of buying used machines.

 

[ScottandSargeant]

You are absolutely right about the shipping cost increase for containers worldwide. There is actually a shortage of shipping containers worldwide. China is now turning the screw on the world. Inflation is about to ramp up everywhere and we the consumer will have to pay for it. Those previously super cheap items from China are now going to cost us dearly. Easier said than done but we need to support our national manufacturers more now than ever before.

Sadly only Sedgwick are left as UK manufacturers of simple machines (saws/planers/spindle moulders) .…,and they have increased prices by about 15% this summer too. Material costs have shot up.

 

[Terry - Somerset]

I went into Axminster today for a wander. Very quiet but there is no doubt prices of stuff has increased massively, certainly on "hobby" stuff (woodturning etc) which is my interest. Range in the shop has also been reduced.

Taking table top thicknessers for an example - box dimensions (say) 50x40x40cm. 40ft shipping container has dimensions of 1200x240x240cm. Jam packed it will hold 864 boxes. Shipping, even at £10k a container is £12 per unit - not close to the level of increases we are seeing.

Other transport costs are also increasing - certainly HGV driver pay (no particular problem with that). But this would not remotely account for the price increases.

The reasons, I think, are two fold:

• general business strategy focussing on the professional and business market, not the hobby market.
• for 18 months, component and material supply has been disrupted, and the market is simply driving up prices through limited supply of finished goods. Both Axminster and others in the supply chain may be exploiting this.

 

[Dutchie74]

I went into Axminster today for a wander. Very quiet but there is no doubt prices of stuff has increased massively, certainly on "hobby" stuff (woodturning etc) which is my interest. Range in the shop has also been reduced.

Taking table top thicknessers for an example - box dimensions (say) 50x40x40cm. 40ft shipping container has dimensions of 1200x240x240cm. Jam packed it will hold 864 boxes. Shipping, even at £10k a container is £12 per unit - not close to the level of increases we are seeing.

Other transport costs are also increasing - certainly HGV driver pay (no particular problem with that). But this would not remotely account for the price increases.

The reasons, I think, are two fold:

• general business strategy focussing on the professional and business market, not the hobby market.
• for 18 months, component and material supply has been disrupted, and the market is simply driving up prices through limited supply of finished goods. Both Axminster and others in the supply chain may be exploiting this.

That container is now costing in excess of £15k to ship. VAT and import duties to be based on the increased shipping amount. You are correct about supply disruption. Now you can see how prices are on the inevitable upward spiral. Suppliers this side of the world then have to pass on the extra costs to the end consumer.

 

[TheTiddles]

If Axminster is so expensive now, why don’t people buy from the retailer who is much cheaper and now owns the entire market as they undercut everyone else?

 

[Blackswanwood]

Interesting article about shipping on the BBC website today.

business-58479148

 

[Blackswanwood]

If Axminster is so expensive now, why don’t people buy from the retailer who is much cheaper and now owns the entire market as they undercut everyone else?

Steady on - don't start introducing logic or we might conclude Axminster are an honest business plying their trade and competing fairly in an open market ....

 

[Terry - Somerset]

Axminster make their own decisions on pricing and promotion. They have chosen to have showrooms, stock in warehouse (current covid problems excepted) have a fairly extensive range of all products, and employ staff who mainly know what they are talking about.

This level of customer service costs money, and ultimately the customers gets the benefits and pays the price.

The customer also has the right to go elsewhere and trade off saving money against convenience and time - it's their choice and I am sure Axminster know this.