Wednesday, 23 May 2012
The reason for the price rise
Once you get over the standard rate of inflation, and expansion in the company what is the price rise caused by?
The price of Oil.
GW has to deliver its stock to its stores. It has to deliver them internationally, and to homes. It has to order in raw supplies and other bits.
And transport isn't cheap. In the UK the price of petrol is up 5p a litre on where it was last year, and over double what it was 10 years ago.
Crude oil, the source of 99% of all fuel sources was 71 bucks a barrell in 2010. It was $87 in 2011. Right now its somewhere between 90-100 a barell.
Things are more expensive becuase the world is more expensive.
Other companies aren't charging more as they don't have the infrastructure. PP or Dust don't have to ship to stres, they can just drop orders off and let someone else deliver for them.
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