Originally Posted by
Boydy47
You're missing the point here Sandy, if the issue causing the 15% hike is the weak £ as they keep telling us then it's not down to wages and overheads, these haven't increased (apart from the fact they now have to provide an employee pension - they're not blaming this)
Say their business aims to make 20% gross profit on the powder they buy in to cover wages, overheads, and profit if they bought in a kg of powder at £100 before the increase they're selling it on at £120 - £20 gross profit.
If the nett cost has increased 4% due to the weak £ then the nett cost to them is £104.00, so they sell it at £124.80 - £20.80 gross profit, they are making 4% more profit for selling the same kg of powder. That 4 % increase (£4.80) equates to a 4% increase to the consumer but they make more profit. 15% is disproportionate.
Essentially if they were covering costs and making profit before then the should be doing the same or better without the disproportionate increase.
Incidentally, the guy we get it from charges £7.00 per delivery, if he put than on per 1 kg tub he'd still come in at less than most RFDs.