Made in China not so cheap
HIGHER wages in China and the strong value of cotton are hurting local businesses who are paying more for items made overseas.
Workin’ Wear owner Allison Webster said she has seen a dramatic hike in prices this month.
“Everything coming out of China has gone up and people are unaware of it,” Mrs Webster said.
“Any new stock we get is at an increased cost. The price of cotton has only made it worse – it’s gone from US 67c to US$2.16 a pound.
“I’ve been in retail all my life and I’ve never seen a rise this big.”
Mrs Webster said the reasons behind the spike in prices was not being made public by the media.
“(Thursday) night on the news they were going on about the average retail mark-up being 140% and business owners were raking it in, and I thought ‘yeah I wish’,” she said.
“The news story gave the impression that all retail businesses were making more money, but that is so far from the truth.”
The business owner conceded she had marked up prices to cater for the increase, but said it was only marginal.
Instead, she said it was more important to retain customers.
“I’ve just had to put prices up according to the price rise – I still keep them as low as I can,” she said.
“In retail there’s a lot of opposition and you do have to try and be competitive and that’s my goal.
“I’ve just been letting customers know why the price rise is happening and I refuse to raise my stock until it’s new.”
Not all businesses selling cotton-goods have been the victim of higher prices though. Mrs Webster said a fellow business owner had recorded similar increases on tyres.
“I guess it comes down to supporting local businesses and Warwick is really good at that,” she said.
“I used to live in a town where they didn’t support local businesses and that town struggles today.”
What have you noticed with prices of goods? Or if you are a business owner, what has been your experience? Phone us 4660 1316 or leave a comment below.