End of our Electricity Supply Contract
So the day has come... the end of our electricity supply contract.... So like everywhere else our rate has gone up, in our case, from 17p to 30p/unit which is a beautiful 76% increase, after plenty of negotiation.
We used to absorb the cost of electricity without another thought and didn't apply it to items sold but with this significant increase, we are somewhat forced into doing something. Hopefully, this will be short term and next time around our rates will be lower, but the chances, right? Energy companies lowering prices...
So our solution (with a little maths involved):
We sell about 30,000 items a year so with our bill rising from £4000 to £7000 we will have to add that £3000 to our items which those eagle-eyed readers will notice 3000 and 30000 work together nicely in relation to maths. Yes 10p... we will apply 10p to our costs per item to which then our pricing generator will create a new price for us.
What does this mean?
In most cases, nothing. It only affects items that have a cost that ends above 90p as that means the 10p addition moves the item up a £1 level. So I have made a load of news out of nothing really...