Rusevelt Posted March 24, 2009 Report Share Posted March 24, 2009 (edited) Supposedly meaning retailers lowering their RRP to encourage comsumer spending but is that the reality here, and what impact will it have on the uk trials market when our currency is so damn weak? Edited March 25, 2009 by Rusevelt Quote Link to comment Share on other sites More sharing options...
Hannah Shucksmith Posted March 24, 2009 Report Share Posted March 24, 2009 Even if the retailers ARE lowering their RRP's the consumer is going to still have trouble paying the amount requested due to the current economic situation. If a frame's price was lowered by 20% from £100 to £80, that's still £80 that the consumer has to fork out to pay for the frame. Myself and my family are struggling to afford the most basic living things right now, and I know that even if a retailer knocked £20 off a frame, I still wouldn't be able to afford it. Sure, some people out there are lucky enough to be able to afford a frame, and will be more at ease knowing they can pay less for a frame, but others can't, even with a slight deduction. Plus, I think the retailers are going to have to consider to what extent knocking a percentage of the price off goods will do to their business. Sure, more items might sell, but not much of a profit will have been gained considering the drop in prices. I'm making no sense, so I'm going to stop typing. Quote Link to comment Share on other sites More sharing options...
16 years later Posted March 24, 2009 Report Share Posted March 24, 2009 (edited) Ignore me, I’m just a tit. Edited March 24, 2009 by 16 years later Quote Link to comment Share on other sites More sharing options...
neotropolis Posted March 24, 2009 Report Share Posted March 24, 2009 So far the economic downturn hasnt really affected me at all, so it would be good news for me if things became cheaper. Quote Link to comment Share on other sites More sharing options...
ogre Posted March 24, 2009 Report Share Posted March 24, 2009 Supposedly meaning retailers lowering their RRP to encourage comsumer spending but is that the reality here, and what impact will it have on the uk trials market when are currency is so damn weak?the majority of people on here are minted anyway, or work part time jobs and have few overheads to pay so the recession isn't gunna be an issue to most, although it will suck for a few tfers (like hannah). So the uk trials market is prety secure from a "people will buy stuff" aspect, however since the pound sucks at the moment (70p to $1, i know buying in is mostly from china but i know the dollar price from college today) buying in goods will cost more, since there is no real economy of scale to the trials market, in that tarty won't be spending millions on stock, things are likely to go up, surely? and the tax cut is insignificant unless your spending a few grand your really only saving a few quid most of the time. meh Quote Link to comment Share on other sites More sharing options...
andyb Posted March 24, 2009 Report Share Posted March 24, 2009 Although the VAT rate has been cut , we are only going to see prices go up due to the exchange rate, the majority of trials goodies are, i assume, imported in euros or dollars. Two currencies that the pound is now weaker against than a year ago, hence all the parts and frames that we want are costing tarty and co, a lot more to buy in, because of this they have no choice but to up prices. Unfortunately we probably wont start to see things improve for another year at least so I imagine those of us who have bills to pay wont be getting new bits as often as before. Andy B Quote Link to comment Share on other sites More sharing options...
Papa Manual Posted March 24, 2009 Report Share Posted March 24, 2009 Although the VAT rate has been cut , we are only going to see prices go up due to the exchange rate, the majority of trials goodies are, i assume, imported in euros or dollars. Two currencies that the pound is now weaker against than a year ago, hence all the parts and frames that we want are costing tarty and co, a lot more to buy in, because of this they have no choice but to up prices. Unfortunately we probably wont start to see things improve for another year at least so I imagine those of us who have bills to pay wont be getting new bits as often as before. Andy BTrue. But when things do improve (I reckon it'll be far longer than a year) the effects of the BoEs horrendous quantitative easing programme will probably lead to hyperinflation, and then we'll all be properly f**ked. Quote Link to comment Share on other sites More sharing options...
psycholist Posted March 24, 2009 Report Share Posted March 24, 2009 The temptation to buy a billion dollar note from Zimbabwe is strong though (Valued at about €20), just so I can claim to be a billionaire in any currency... Since I'm in the Euro zone in Ireland, the Irish government can't get away with questionable behaviour like deliberately overprinting our currency and hoping the markets won't notice and start devaluing thankfully (Mostly because I know they'd do it of they thought they could get away with it).One thing that will ease costs is the drop in fuel prices from the start of the year and the reduction in world wide demand for raw materials though. I'd expect stuff from the far east to get cheaper for this reason, but that's not really going to be much compensation for people who need the money they have for more fundamental needs like food and shelter ... Quote Link to comment Share on other sites More sharing options...
Matt Vandart Posted March 24, 2009 Report Share Posted March 24, 2009 Even if the retailers ARE lowering their RRP's the consumer is going to still have trouble paying the amount requested due to the current economic situation. If a frame's price was lowered by 20% from £100 to £80, that's still £80 that the consumer has to fork out to pay for the frame. Myself and my family are struggling to afford the most basic living things right now, and I know that even if a retailer knocked £20 off a frame, I still wouldn't be able to afford it. Sure, some people out there are lucky enough to be able to afford a frame, and will be more at ease knowing they can pay less for a frame, but others can't, even with a slight deduction. Plus, I think the retailers are going to have to consider to what extent knocking a percentage of the price off goods will do to their business. Sure, more items might sell, but not much of a profit will have been gained considering the drop in prices. I'm making no sense, so I'm going to stop typing.You are making sense Hannah, running a business isn't about just profit, though it is more about cashflow. Cashflow is paramount, without cashflow you have no business. By dropping the price by 20% and generating a few more customers you are taking a hit from profits, however you are generating cash flow.I can expand on this subject if you are interested, but cannot be bothered to type at the moment.Matt Quote Link to comment Share on other sites More sharing options...
Rusevelt Posted March 25, 2009 Author Report Share Posted March 25, 2009 I was checking out news reports of how small business are gonna have to pay their rent (from september 09 i think) monthly instead of quarterly, so they will feeling the crunch at some point. I guess the real question to ask ourselfs is do we buy our spare components now, or save up and buy later? Quote Link to comment Share on other sites More sharing options...
ti-mig-guy Posted March 25, 2009 Report Share Posted March 25, 2009 The trials market is way to small to begin with. I see the real issue here being for the manufacturer. If there profits are down-due to drop in volume or drop in pricing- then they will not spend much in the R+D area. There is however the idea that the eastern market is growing well still, and if there are enough Chinese coming into the sport, then the manufacturers may survive. Quote Link to comment Share on other sites More sharing options...
trialschallenger Posted March 25, 2009 Report Share Posted March 25, 2009 i think the uk trials market will slowly dwindle down, hopefully still existant thoughim in the same situation as the first reply im struggling to pay bills and thati thought my job was safe as im a heating engineer and work in schools but nope the work is drying up there too any wayas said before knocking a percentage off will not encourage me too buy as i simply do not have major amounts of cash at the momentfingers crossed this "economic downturn" will flutter away within 6 months and we will all ride happily ever after. . . . . Quote Link to comment Share on other sites More sharing options...
Captain Scarlet Posted March 25, 2009 Report Share Posted March 25, 2009 The economy is only going to get worse if the media continue to scare people into not spending money, and everyday say "Big economic crisis, save money, etc".Its hard for small retailers at this time, and the main reason is that people are afraid to spend money, the VAT reduction was a good idea but really is a negligable amount of saving there, until there is a more significant reduction then people will still be afraid to go out and buy things because of the media hype.I think if said reduction takes place, it will definately benefit the smaller retailers as well as the larger nationwide retailers, which will have a great "knock-on" effect for the economy. Quote Link to comment Share on other sites More sharing options...
Matt Vandart Posted March 25, 2009 Report Share Posted March 25, 2009 You've hit the nail on the head there Captain.Matt Quote Link to comment Share on other sites More sharing options...
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