Impact of BREXIT – increasing prices

I commented a while back:

The immediate result of a weak pound will put the cost of USA, European and Japanese models up.  And of course, where are British models made – China – so we’ll see yet another price hike for Farish and Dapol!

Dapol have just announced price rises.  It’s even reached the BBC:

Model train prices are rising because of pound’s devaluation

The pound’s recent devaluation after June’s Brexit vote has already led to some price rises, and model railways are one business feeling the effects.  Early in October, the leading manufacturer Hornby told retailers that wholesale prices for many of its trains would rise by an average of 10%….

Similarly, the small Welsh model train manufacturer Dapol has warned that the fall in the pound has affected the company “severely” and that the costs of all its imported products have risen between 10% and 20% since 23 June.

“We were hoping that the situation would stabilise and that the pound would regain some of its fallen value,” said Dapol managing director Joel Bright.  “It is now clear that this is not going to be the case and perhaps a weaker pound is here for the longer term. As a consequence, we now need to recoup these increased costs from imported goods.”

Another big model train manufacturer is Bachmann, now owned by a Chinese firm which makes the models in that country, and though it has not revealed its hand it will find it hard to resist the effect of the pound’s devaluation

I liked one of the pictures in the piece: “The way model trains used to be”.  Not that bad, really – you can see what it’s a model of.

_92073901_gettyimages-77363680

Maybe it’s time to buy those bargains you were wondering about NOW.

 

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About snitchthebudgie

Secretary of the East Surrey N Gauge railway club
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