Will prices come down now?

[APoc184]

Lets take food as example.

Every time the petrol/diesel price went up the food price went up and up...
Cost of transport has a big influence on the price of food, which is understandable.

BUT...

Now with the dramatic drop in the price of petrol/diesel over the last couple of months.
Will we be seeing a drop in food prices?
Or will the suppliers and supermarkets just keep it the same and bank the extra profit?

 

[Necuno]

Maybe local produced products but not imported goods or things that is "imported parts" depended.

 

[APoc184]

It makes sense that imported stuff will not come down because of financial crisis. Exchange rates etc..

But surely lots of food products are produced locally. If those prices will come down remains to be seen.

Take a chocolate for example. Produced in South Africa. Prices went up by minimum 30%. Now will that come down now? I dont think so. Supplier will rather bank the profit and throw some money at charity...

 

[Devill]

Lets take food as example.

Every time the petrol/diesel price went up the food price went up and up...
Cost of transport has a big influence on the price of food, which is understandable.

BUT...

Now with the dramatic drop in the price of petrol/diesel over the last couple of months.
Will we be seeing a drop in food prices?
Or will the suppliers and supermarkets just keep it the same and bank the extra profit?

Whahahahha you think Mr. Owner is going to drop any prices?

THis is South Africa and due to very little competition they do not need to lower prices. We (the consumer) have a choice, either buy from them at the prices they want or don't and starve or grow your own

 

[APoc184]

Whahahahha you think Mr. Owner is going to drop any prices?

or grow your own

Lets start a agricultural cult/sect.

 

[Devill]

Lets start a agricultural cult/sect.

Ooooh can I be the guy with the 83 wives?

 

[APoc184]

Ooooh can I be the guy with the 83 wives?

Of course you can. But no outsourcing when it becomes to much to handle

 

[killadoob]

Prices never come down when petrol does, its the south african way.

 

[Devill]

Of course you can. But no outsourcing when it becomes to much to handle

No problems!
Ill put them on a rotary roster

 

[APoc184]

No problems!
Ill put them on a rotary roster

LOL. And what speed will it be set @?

 

[LazyLion]

Lets take food as example.

Every time the petrol/diesel price went up the food price went up and up...
Cost of transport has a big influence on the price of food, which is understandable.

BUT...

Now with the dramatic drop in the price of petrol/diesel over the last couple of months.
Will we be seeing a drop in food prices?
Or will the suppliers and supermarkets just keep it the same and bank the extra profit?

This is not in line with their "greed" policy. Now quit your whining and bend over and take it like a good little consumer.

 

[APoc184]

bend over and take it like a good little consumer.

Im beginning to worry about you Gary.

BE AFRAID!! BE VERY AFRAID!!!

 

[krycor]

It makes sense that imported stuff will not come down because of financial crisis. Exchange rates etc..

But surely lots of food products are produced locally. If those prices will come down remains to be seen.

This is SA, local producers will complain especially when the rand is over R10/$, unless you want food shortages we have to contend with higher prices.

 

[slayerza]

I suppose that it is unlikely for prices to fall, at least substantially. On the other hand if you look at the measly prices producers are paid for their produce and the prices we pay at retailers it is quite shocking. Some farmers only get about R1.50 per liter of milk

 

[Mila]

I all ready have my own veggie garden

But the neighbours is going to complain about a cow... and my cats like the neighbours chickens..... no animals for me....

 

[Devill]

LOL. And what speed will it be set @?

"High"

 

[stix]

Highly unlikely anything will change.

 

[Arthur]

I don't think prices will come down. But it's not just greedy businesses pocketing profits, and we shouldn't just willy-nilly condemn local businesses for profiteering. After all, SA buyers are world-famous for buying on price, much more than Europeans or Americans.

It's not only fuel that's increased, as we all of course know.

Take the locally-made chocolate example given above:
- parts for machines are 30% more expensive than just 2 months ago, and rising...
- cost of skilled staff to maintain manufacturing plant is going up and up, at probably an even higher rate
- huge exchange rate hit on cost of imported materials such as cocoa, soy emulsifiers, and such ...
- cost of money is higher (interest rates)

The actual local value add is probably quite small, so there's little wiggle room. Manufacturing margins are probably lower than a year ago, and wholesaler and retail margins are probably unchanged.

I don't expect locally made chocolates to come down in price. Or much else, for very similar reasons.

... and, no, I don't own a chocolate factory, or any other factory.

Note to Devill and his lust for 83 wives: aren't you evincing even more greed than what you ascribe to businesses?

 

[Slootvreter]

They will keep the prices as it is now, and some might even reckon hey, they're saving on fuel, lets milk them somewhere else.

 

[APoc184]

I don't think prices will come down. But it's not just greedy businesses pocketing profits, and we shouldn't just willy-nilly condemn local businesses for profiteering. After all, SA buyers are world-famous for buying on price, much more than Europeans or Americans.

It's not only fuel that's increased, as we all of course know.

Take the locally-made chocolate example given above:
- parts for machines are 30% more expensive than just 2 months ago, and rising...
- cost of skilled staff to maintain manufacturing plant is going up and up, at probably an even higher rate
- huge exchange rate hit on cost of imported materials such as cocoa, soy emulsifiers, and such ...
- cost of money is higher (interest rates)

The actual local value add is probably quite small, so there's little wiggle room. Manufacturing margins are probably lower than a year ago, and wholesaler and retail margins are probably unchanged.

I don't expect locally made chocolates to come down in price. Or much else, for very similar reasons.

... and, no, I don't own a chocolate factory, or any other factory.

Note to Devill and his lust for 83 wives: aren't you evincing even more greed than what you ascribe to businesses?

So lets say the Rand/Dollar rate improves radically over the next 3 months, we see a drop in interest rates as speculated and the petrol price drops by maybe another R1.00.
Thus import prices are much cheaper again, transport is cheaper, and the cost of capital is again affordable.
Would you say this is sufficient enough for a drop in chocolate prices?

Prices cannot stay high just because of the salaries you need to pay skilled workers?

I truly do believe what Baz Luhrmann sings in his song Everybody is free(to wear sunscreen).

Accept certain inalienable truths, prices will rise, politicians will
philander, you too will get old, and when you do you’ll fantasize
that when you were young prices were reasonable, politicians were
noble and children respected their elders.

But how we all wish it was not true.