We regret that from October 2016, the majority of our prices will increase. We will do this fairly, ensuring stock that we have acquired at its original price will be sold at its original price. As such different product prices will increase at different times throughout October, November, December and possibly January 2017.
Why are we increasing prices?
Following the Brexit vote earlier this year, we have regularly been receiving price increases from our suppliers. The few suppliers that have not done so yet, will do this in January 2017 in line with their usual pricing protocols. The majority of our coffee making equipment, accessories and cleaning products are produced in the EU and the sharp drop of the Pound against the Euro has meant it now costs more to purchase the same products. Similarly, coffee and tea are typically traded in US Dollars and again the Pound has dropped significantly against the Dollar in recent months. Now that pre-Brexit stocks are depleting and pre-Brexit price agreements are up for renewal, the real impact of the weaker pound is starting to be felt.
What are WE doing?
The average price increase following Brexit has been 10-15%. The majority of our suppliers have not passed this increase on in full and absorbed some of this themselves. In turn, we also have absorbed some of the increased costs, cutting our margins and reducing overheads where possible. As such increases in our prices are typically around 5%. This means that when it comes to coffee, for example, the increase per cup of coffee is less than half a pence.
That said price increases are never welcome and certainly never fun. Over the last 5 years, however, we have only increased our prices on a small number of occasions and only for a small number of products. In fact, because of our continued growth over the last 3 years, we have been able to buy in larger quantities and the savings from this we have consistently passed on to our customers. We, therefore, do trust that you will understand the unfortunate position we are now in and appreciate that we have no option other than to increase our prices.
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