The people of Britain have voted to leave the European Union and go it alone.
The pound has slumped, increasing the cost of imported goods. So what does life look like, post Brexit referendum, for businesses like Pellpax?
Many of the products Pellpax sell are imported. Does this mean, then, that Pellpax prices will go up? Apparently not: in fact, they’re going down. I had a chat with Managing Director, Darren Kirk.
What’s going on, Darren? Have you lost the plot?
Well, I agree, it does seem odd. But there really is good reason behind the madness! It’s all to do with passing on to our customers the benefits of Pellpax’s growth.
With two new warehouse units on the point of completion, we now have the extra space to hold stock, meaning that we can buy in larger quantities. The savings we make on bulk purchases will be reflected in the price tags. The fact that we are in a position to expand is down to the thousands of customers who have been loyal to us over the last few years.
But most of these reduced prices are barely above the cost price. Is it really feasible?
I know it sounds crazy. Yes, our margins are now smaller. Yes, we’re now putting lower prices on most of our goods; buying power is certainly one benefit of rapid growth. We aim to deliver products like airguns to your door more cheaply – or at least, at no greater expense – than if you were to buy locally.
The thing is, Hazel, we don’t want our customers to suffer from this political change when it comes to buying from us. Christmas is just around the corner. We want to be able to provide top quality goods at great prices. After all, it’s our customers who have made this possible: without them, there would be no Pellpax.
How will your delivery service be affected?
It won’t be affected, but I am able to lower our delivery charges. As you know, fuel prices have risen quite dramatically, due not only to the weak pound and higher import duty, but also to the simultaneous rise in the cost of oil. However, because of the increasing number of deliveries we do every week, we can actually reduce our delivery charge. Higher fuel costs are absorbed in the sheer volume of deliveries.
Another fantastic advantage of our unique delivery service is that we can always – or nearly always – squeeze in an extra delivery at the last minute. Our six vehicles cover the whole of the UK each week (with monthly visits to Scotland), so one of our drivers will be, at some point, only ten minutes away from any location. This is what Pellpax is all about: it’s about looking after our customers.
Do you think that these low prices are sustainable?
They certainly won’t change in the next few months, unless I think I can reduce them further to stimulate further growth. What will happen after January, I really don’t know; a lot depends on the direction sterling takes. But I’m optimistic.
How will Pellpax’s expansion help to keep prices as low as they are?
With the two new warehouses, we’ll have the capacity to hold a wider variety of stock, and in greater quantity, so that everything on the website is always available. This also means that we can order more, but less frequently, from suppliers, reducing delivery costs into our warehouses.
New IT systems, written specifically for us, have improved the automated ordering process, and they also give us better control over inventories. If the excellent service we provide is enough to retain the loyalty and satisfaction of our customers, the result will be long-term low prices.
Learn more about our special Pellpax service, which bring airguns, shotguns and more delivered directly to your door, right here. And find out about what life is like for drivers on the delivery service here.
You can also discover more about the work of our correspondent, Hazel Randall, here. She offers copywriting services in Norwich, Norfolk and beyond.