TELL US YOUR THOUGHTS
I’m confident that there is still money out there but the mainstream media and unchecked social media news stunts public confidence – effectively talking the country into recession.
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a fraction of the cost of fuel-powered journeys.” E-scooter brand Zinc has joined the calls for the
Government to legalise e-scooters, urging ministers to provide a timescale for the proposed legislation update, which is believed to pave the way for the legalisation of private-user scooters. Chief operating officer Chirag Shah said: “For the equivalent of a couple of tanks of petrol you could buy an e-scooter. Fuel prices show no sign of slowing down and for a fraction of the cost, the public can experience a low-cost alternative for shorter journeys. E-scooters can potentially change the way we travel and help address pollution and congestion problems. “The Government has already recognized their potential with the introduction of rental trials, and the Queen’s Speech indicated that the Government expected to legalise their use, but it isn’t clear when private e-scooters will be allowed on the roads.” Average wages in the UK are also falling at the fastest rate
for more than two decades, as annual pay growth fails to keep pace with the rising cost of living despite record numbers of job vacancies and low unemployment. According to The Guardian, three-quarters of small and medium-sized companies are also worried about the long- term impact the cost of living crisis, soaring energy bills and rising inflation will have on their business. Just over half of SMEs said they were concerned that
rocketing prices would dent consumer spending, and rising energy bills and higher raw material costs are reportedly putting pressure on businesses and creating a challenging trading environment.
But how is the cost of living crisis affecting cycle stores? “I offer pickup and delivery with my diesel van, and rising costs have eaten part of my margins,” said Massimo Amodeo, owner of Exeter’s Bikehavn. “My prices, then, inevitably will rise.” On being concerned that high prices are denting consumer spending, Amodeo said: “On one side, yes. On the other, I hope rational choices will push people back to moving by bike. “Being a repair workshop and occasionally selling used
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bikes, I am pretty positive it will end well for me. [I] wouldn’t be so sure if I had a big shop with overheads.” Stamford Cycleworks in Lincolnshire is a new workshop- only business – trade is inconsistent and spend is cautious, said director Matt Cleathero. On the impact of inflation on business, Cleathero said the cost of everything has gone up – energy, fuel, parts. But Cleathero isn’t really concerned about high prices denting consumer spending, as prices have been artificially low for too long. “The price needs to accurately reflect the true cost to get it on our shelf and onto a customer,” said Cleathero. “Labour, materials, environment should all be fairly accounted for.” Cleathero added: “I think people buy
into your story and are more inclined to support you if you’re honest and transparent. An upshot of the recent years is that people are seeking out good genuine independent businesses. “I’m confident that there is still money out there
but the mainstream media and unchecked social media news stunts public confidence – effectively talking the country into recession.” Adam Bell, director of Bognor Bike Hub in Bognor Regis, said the cost of living crisis has had “no real effect”, as they are halfway through a four-year fixed energy deal, but rising inflation has meant rising costs of parts and new bikes. But Bell also isn’t especially concerned about high prices
denting consumer spending, “as we’re seeing people stating they’re reducing/stopping use of cars to switch to bikes”. Prospects looking forward are “fairly positive”, Bell added. Paul Birley, a business owner in Malvern, Worcestershire, said the cost of living crisis has meant the store has seen much higher utility costs. “We can’t even get a fixed price energy contract. Higher fuel costs for delivery to customers, are the immediate problems.” On the impact of inflation, Birley said: “We have to be cautious to ensure every penny we invest in the business is going to make a good return.” Prospects are still good for some product segments, said Birley, but static or fewer sales in other areas. But on higher prices denting consumer spending, Birley said: “I think at the lower end of the market, customers have less to spend, but from the mid-range upwards people still have money but value price over service more than ever.” ■
July 2022 | 45
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