As I woke on the morning of the 24th to the news we had voted out I was shell shocked. Some were elated, some were angry and some were just wishing they could press the ‘undo’ button on their vote. The battle grounds of Facebook were being set with both revellers full of joyful glee and the scorned 48% feeling betrayed by the 52% with a heavy dose of unfriending, best friends becoming strangers and even families being divided by the landmark vote.
Following the momentous outcome of Brexit, Sterling fell to its lowest level since 1985. Some of my first thoughts were to business; what effects will it have on our economy? How it will affect the print industry and lastly how many businesses in the supply chain will make knee jerk reactions?
With the vast majority of our goods coming from Europe and the US we deal directly with manufacturers and import products from countries that use the Dollar and Euro, this means manufactures that make products like ink in the far east and pass goods through their various national sales offices (NSO’s) the hit that the pound has taken has meant an increase in the cost of products to the UK market changing by as much as an increase in 20%. This has had a negative impact on many business’s including this one, there is one positive outcome, export is now much better value for the UK and we have a chance to retool to manufacturer products over here for sale abroad. How this will affect the print business is too early to fully tell.
Now the dust has settled and at nearly five months’ post Brexit, we are seeing the knock on effects of the decision. Not specifically on volume of sales but the increased pressure we are now all feeling with increased costs which are filtering down through the channel in many industries.
It is extremely hard to justify any price increases to your product portfolio as a business. As pretty much everyone in the UK is aware the negative impact Brexit can, and already has had on every spectrum business’s in UK with some exceptions, it makes it marginally easier to explain to your customers why you have to increase prices. That said it is still something I have put off for as long as we can trying to wait for the currency to bounce back, until it starts costing us money on a daily basis.
One positive thing you can do whilst the pressure is on your bottom line from Brexit is to approach the increase in perhaps a more creative and positive manner than the usual blanket increase. We have tried to work hard on our customers’ behalf to minimise the costs and the impact over the last few months and continue to do so at a pace trying to secure the best value possible.
Your customers are in the same boat as you, your concerns are also their concerns. Start by addressing your customer’s biggest concerns; namely how they can reduce costs with your product and make them more efficient as a business. It is perhaps time to spend more time going through the finer points of their business and perhaps asking them directly how Brexit has affected them and how they are struggling with higher prices and more expensive purchase costs. There is a small possibility that they have not been effected by the vote to leave which will make your job a little easier, understanding where you can help them and therefore how you can help them.
There was much scare mongering amongst top industry experts, financial institutions and politicians about how the impacts would have been a lot worse. Although I would rather take no impact as an option, the resulting change to prices and running a business is still manageable if approached in the right way. After all, we are all in similar circumstances and going through your own concerns as a business will help you understand the impacts your customers are feeling.
It has only been five months and we are yet to see the bigger impact on the print industry and any long term effect. The world is a very different place than it was twelve months ago and uncertainty is still in the air. Adapting is the key for any business in most industries that are wanting to shake of the negative impact that Brexit has had on us and others.
Final Word,
We have to look on the bright side, Brexit has now been Trumped and I’m sure our cousins on the other side of the Atlantic are now wondering what the future holds for them. As we wonder with the courts intervening to uphold our sovereign rights and the democratic process that led us here, In or out tomorrow is a new day.
Ben Randall
