The new tracker is designed to help members keep up to speed with the current turbulent inflationary situation.
Published monthly, BHETA’s new report will sit alongside the association’s monthly economic snapshot and quarterly market data report.
The new Price Tracker will assist suppliers as the Consumer Prices Index rose by 11.1% in the 12 months to October 2022. With many housewares and home improvement products still tracking higher, the situation is fast moving and something not seen for almost 30 years. A practical consequence of this is that many buyers and sales teams don’t have experience of the intricacies of price increases on this scale.
Steve Richardson, BHETA marketing manager, explained: “While it is obvious that product costs are made up of many elements, including raw materials, transportation, labour, energy and processing, present circumstances make it even more crucial that suppliers and buyers understand the relative influence of each, if they are to have meaningful and productive price negotiations.
“For example, with a highly process-driven product, energy could represent 60% of the production cost, and raw materials only 20%. In this case, energy price rises of 10% will have a much higher impact on cost even if raw material costs decrease.
“It is important both parties understand what is involved if fair outcomes are to be achieved, and indeed, if communications to the consumer are to be accurate as well. BHETA’s new Commodity, Energy and Freight Price Tracker is designed to ensure that BHETA members have the information to communicate effectively.”