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Seeing a lot of this in the comments. You would think, with the huge amount of guidance and detail they've been given, that they would be able to deal with small issues like a 10% increase in costs


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I honestly don't understand some of those posts... is the corset maker saying she can no longer buy her materials from the EU? Have none of the above made plans for a no deal? Did they think that was impossible?

I'm actually not being arguementative here or pro brexit etc.. geniuniely curious how and why business owners haven't planned for this and why they can't get materials form the EU
 
I honestly don't understand some of those posts... is the corset maker saying she can no longer buy her materials from the EU? Have none of the above made plans for a no deal? Did they think that was impossible?

I'm actually not being arguementative here or pro brexit etc.. geniuniely curious how and why business owners haven't planned for this and why they can't get materials form the EU

She is likely talking about the potential increase in costs from either tariffs or logistical complications. Rather than literally saying they cannot be purchased.

I know first hand that shipping companies are currently charging as much as $10,000 (from as low as $1500 in January) to ship a container of product from China to the UK, due to delays at ports in Felixstowe and Southampton.

Apply comparable increases to freight coming from the EU come Jan 1st and you see the difficulty. Many small businesses will simply not be able to absorb this cost.

The ports and channel tunnel entry point in this country are totally unprepared for a no deal scenario. They’re barely even prepared for a good deal as many of the additional checks will still be required.
 
I honestly don't understand some of those posts... is the corset maker saying she can no longer buy her materials from the EU? Have none of the above made plans for a no deal? Did they think that was impossible?

I'm actually not being arguementative here or pro brexit etc.. geniuniely curious how and why business owners haven't planned for this and why they can't get materials form the EU

Indeed, willing customer and willing supplier cannot work out how to purchase and supply material......
 
I honestly don't understand some of those posts... is the corset maker saying she can no longer buy her materials from the EU? Have none of the above made plans for a no deal? Did they think that was impossible?

I'm actually not being arguementative here or pro brexit etc.. geniuniely curious how and why business owners haven't planned for this and why they can't get materials form the EU
Maybe it's a lot more expensive and unreliable to ship right now.
Perhaps small businesses can't afford to gamble on some random tarrif being applied and removing their profit margin.
Alternatively, it may be the 'government's' decision to make exporters liable for paying 1k and register with some random agency before exporting goods to the UK that makes it harder to access their materials.

Or it could be all of the above, some more stuff, and the fact that our government hasn't prepared.
 
Have they really started patrolling the channel with Gun boats? Seriously what is wrong with this lot. What has this country become?
 
She is likely talking about the potential increase in costs from either tariffs or logistical complications. Rather than literally saying they cannot be purchased.

I know first hand that shipping companies are currently charging as much as $10,000 (from as low as $1500 in January) to ship a container of product from China to the UK, due to delays at ports in Felixstowe and Southampton.

Apply comparable increases to freight coming from the EU come Jan 1st and you see the difficulty. Many small businesses will simply not be able to absorb this cost.

The ports and channel tunnel entry point in this country are totally unprepared for a no deal scenario. They’re barely even prepared for a good deal as many of the additional checks will still be required.

Absorption of costs may not even be an issue depending upon the business. The chances are that U.K. suppliers will have the same material that the corset manufacturer gets from the EU. If this is not the case and all materials can only be provided by the EU then that means that every other U.K. corset competitor has to adopt the same cost, therefore the cost will be passed to the customer....
 
She is likely talking about the potential increase in costs from either tariffs or logistical complications. Rather than literally saying they cannot be purchased.

I know first hand that shipping companies are currently charging as much as $10,000 (from as low as $1500 in January) to ship a container of product from China to the UK, due to delays at ports in Felixstowe and Southampton.

Apply comparable increases to freight coming from the EU come Jan 1st and you see the difficulty. Many small businesses will simply not be able to absorb this cost.

The ports and channel tunnel entry point in this country are totally unprepared for a no deal scenario. They’re barely even prepared for a good deal as many of the additional checks will still be required.

as do i... and that is due to supply and demand caused by COVID.

This boom and bust created by lockdowns has completely bottle necked supply chains from the far east, which has also incresed costs hugely. Our foam costs have gone up 40%!!!! since july all down to COVID.

Also we had a factory in Romania and due to the no deal threat we have switched to Morocco. It's taken 3 years of planning etc
 
Absorption of costs may not even be an issue depending upon the business. The chances are that U.K. suppliers will have the same material that the corset manufacturer gets from the EU. If this is not the case and all materials can only be provided by the EU then that means that every other U.K. corset competitor has to adopt the same cost, therefore the cost will be passed to the customer....

You know full well Pete that increased costs and therefore increased retail prices drive down consumer demand if products are deemed to be luxury/non-essential.

It’s not as simple as everybody put your prices up and we’ll all be hunky dory.
 
as do i... and that is due to supply and demand caused by COVID.

This boom and bust created by lockdowns has completely bottle necked supply chains from the far east, which has also incresed costs hugely. Our foam costs have gone up 40%!!!! since july all down to COVID.

Also we had a factory in Romania and due to the no deal threat we have switched to Morocco. It's taken 3 years of planning etc

It is largely due to Covid, but logistics and supply chain managers are sweating about Brexit because it could be just as bad if not worse, particularly for entry routes like the channel tunnel which are currently not suffering as much as ports like Felixstowe.

Sadly many small businesses will go to the wall over the next 12-24 months, while the big players will be more able to weather the storm. Logistics companies will prioritise the big boys over smaller enterprises.
 
It is largely due to Covid, but logistics and supply chain managers are sweating about Brexit because it could be just as bad if not worse, particularly for entry routes like the channel tunnel which are currently not suffering as much as ports like Felixstowe.

Agereed, but that will be a short term issue. Goods will flow agains after the initial shock.

Everyone should have known about tariffs.. it's like some of these small business on twitter have never heard of them
 
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