Pumping up the costs

The price of oil has hit an 18-month high leading to speculation that UK petrol prices will pass the record levels seen in the summer of 2008. Rising oil prices are likely to hit the wallets of British drivers already suffering from a weaker pound pushing up wholesale petrol costs. Although the Chancellor has phased in the introduction of the “green” duty rise, 1p a litre was added on April 1, with a further 1p rise to come in October.

So if your supplier puts up the cost of your raw materials how easy is it for you to pass this on by way of a price rise to your customers? What would be the impact on your sales and profits if you put up your prices – or even reduced them? How well do you understand margins and their relationship with overall profitability?

These are some of the themes we explore on our finance courses and business simulations. Pay us an on-line visit or call for an informal chat about how we can help your workers make better financially informed decisions.