It's not often that we have to increase prices. However, following the devaluation of the Pound following the BREXIT result, we have no option but to increase prices. These new prices will be come into place on 1st August.
General Price Increases
Some vendors, where we buy locally in Pounds, are increasing their prices effective 1st August. These price increases are due purely to the change in US Dollar and Euro exchange rates on which their production costs are based. As you probably know the Euro exchange rate as dropped from €1.35 to €1.18 and the US Dollar from $1.50 to $1.30, this means that cost prices have increased by around 15% in both currencies.
Due to these exchange driven cost increases, prices in the following product ranges will be increasing around 15% on 1st August.
- Foscam
- Honeywell
- Yale
LightwaveRF
LightwaveRF has chosen to take a slightly different route in their price increases. They are making a number of changes to their UK set-up, the main one that will affect customers is they are significantly increasing prices for their full range. The new pricing we have seen will see most LightwaveRF prices increase around 50% on the current prices you see at Vesternet.
I want to emphasise that these increases are outside of Vesternet's control and we have no choice but to make the changes on the 1st August.
My advice would be - if you're thinking of buying LightwaveRF, then order now! Provided we have the stock or LightwaveRF have stock that we can get here before the end of this week we will be able to maintain these prices. After Friday, we will have no choice but to increase the pricing in line with the new LightwaveRF pricing structure.
Other Pricing
As you can see, the vast majority of products such as Z-Wave have remained unchanged. This is due to how we buy products and hedge currency. This means that we're able to maintain our low pricing until we need to buy new stock based on the lower exchange rates. At that stage we will need to also increase those prices. I think we will be OK through to mid-August, after which we will also have to increase most Z-Wave product prices.
It's never good to have to increases prices, but I always like to be as transparent as possible. As you can see these changes are unavoidable following the devaluation of the Pound in recent weeks. I will keep you posted of any changes as they come.
See you soon.
Mark.