UK Warehouse Space Nears Capacity as Wholesalers Stockpile for Potential No Deal Brexit...
Increasing storage rates will simply mean increased prices for the consumers.
Since the people voted to leave the EU in 2016, warehouse space has steadily become more expensive with less room becoming available as time goes on.
As we remain in turmoil more and more companies are seeking to store additional stock in fear of a No Deal Brexit, but many of these companies are potentially being met with increased costs due to demand.
Some businesses see this as a way of increasing short term profits, but will short term gain lead to long term pain?
Increasing rates in order to increase profits is really just a short term and narrow minded approach that will not serve these companies well in the long term. It’s taking advantage of a situation and no good ever comes of such practises, warehouse space may be in demand right now but that’s not set to last indefinitely.
Here at Translink Express Logistics we have maintained our rates throughout the Brexit process and despite being at capacity have managed to help our clients by sourcing additional warehousing space from our partners around Leicestershire.
Our Narborough storage facility is generally busy throughout the year but we still continue to meet our customer demands by working with our partners, most of whom are long term loyal clients already themselves but with additional warehousing capacity that they don’t really use.
Many companies are looking to stockpile goods so that they can continue with the supply chain for between 6 weeks and 6 months after the Brexit date and this is generally the reason for this short term spike in demand.
So what happens once the dust settles and a decision on Brexit is finally made? Will the companies who increased prices simply reduce them becuase more competitive rates have become available due to less demand? and if this is the case how do they deal with this in the face of potential angry customers who will by then likely be being offered cheaper rates from other warehousing providers?
It’s pretty simple really; you should not have taken advantage of your customers in the first place by jumping on the Brexit Band Wagon and increasing prices for the sake of greed and then reducing them for the sake of fear.
Don’t ever take advantage of your customers in such a crisis, because in the end when the dust settles they will just end up being someone else’s customer and you will regret your decisions.
We are all in this together...
Brexit affects us all and despite how each and every one of us voted, we are all in this together and taking advantage of your customers, staff or suppliers is not the answer.
Increasing warehouse costs will lead to increased prices in the shops, something none of us want to see, so let’s work through this together.
If you have been affected by your service provider increasing rates during this crisis and would like to explore alternative solutions please get in touch with our sales team.