Political uncertainty has had a knock on effect economically over the past three years which hopefully with the recent election will subside and we will enter a more stable phase which will enable us to get on with what we do best which is running our businesses.
Over the past three years GfA UK has tried to protect customers from economic volatility by not increasing prices. This time last year I wrote to you to explain our decision to hold prices until at least March 2019. I wrote again in July explaining that prices were being maintained at 2017 levels. However, we can no longer sustain this for three main reasons:
- Inflation has been running at approximately 2% (CPI) compounded year on year.
- The £/€ rate has now hopefully stabilised albeit well below the pre-Brexit vote rate.
- We have received cost increases from our supply base, including GfA Germany
Taking the above into consideration we therefore need to raise our prices by 3% effective from the 1st of April 2020 and I hope you appreciate the advance notice allowing you to prepare accordingly.
This will be the first price increase made by GfA UK Ltd in three years which we consider the minimum we can pass on. We will continue to work proactively with our suppliers to offer the best products at a competitive price and ensure price increases are kept to a minimum in the future.
May I take this opportunity to thank you for your support over the years and to wish you business success in 2020 and beyond.