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Thread: Rand weakens

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    Rand weakens

    "Rand weakens, price increase imminent", this is a message I just received from a supplier. Discount offered until price increase

    Wage increase single digit, how on earth do you survive with prices going up by the day.

    You put petrol the price is over R 13, the price for bread and milk everyday 2 litre R ranges from R12 to R20 depending if I get 2 packets or a 2 litre bottle, bread R10.

    I get the sh!ts with my wife because the food/grocer/cleaning bill has gone from R900 when I met her to almost R5000 if we had to buy the same stuff. We have managed to cut it down to around R3000 because we take the specials and shop at various places and just do without certain things.


    It is scary to think how some people survive on the salaries they do.

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    Moderator IanF's Avatar
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    What increases are you giving your staff?
    I think 8-10% is fair!
    Only stress when you can change the outcome!

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    Diamond Member Justloadit's Avatar
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    Yes but have you been able to maintain business with the increase selling price?
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
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    Moderator IanF's Avatar
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    Quote Originally Posted by Justloadit View Post
    Yes but have you been able to maintain business with the increase selling price?
    Yes as the input costs also rise and customers understand that.
    Only stress when you can change the outcome!

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    Gold Member vieome's Avatar
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    <rant>Well at first glance the weakening of the rand is welcome as it could increase exports, however I think it is a start of a trend of continued weakening and estimate by year end the rate will be about 20R to the dollar. While it would seem like a simple solution is to just increases prices, and the result rise in inflation will have a knock on effect. In the case of importers they find themselves with less money for replacement of goods, and in future will try and stock up on dollars to avoid further falls in the rate, thus increase demand for the dollar . The rand will further weaken as demand for the rand will decrease from country's like Zimbabwe who opt for the stronger dollar. Well we are drifting into the arena of the unwell, knocking on the animal farm door. Salary and wage increases will not really be enough to fight of the constant inflation. So people will try and be wise by stocking up on goods to avoid future price increases, eventually some form of black market will open for those goods.

    </rant>

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    Platinum Member desA's Avatar
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    A useful time to be selling expertise offshore.
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    Site Caretaker Dave A's Avatar
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    If the Rand was weakening and we were seeing buoyant exports as a result, at least there would be some light at the end of the tunnel. But those export numbers are looking pretty flat.

    It really looks like there's a serious structural problem in the SA economy right now.
    The trouble with opportunity is it normally comes dressed up as work.

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    Diamond Member wynn's Avatar
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    And as long as the unions keep up with their ridiculous demands and carry on striking at the drop of a hat and the employers keep ignoring the unions instead of negotiating before strike season the rand will stay in the crapper.

    Seems to me that big business thinks that for every 1.2 months the workers are on no work no pay strike they can afford to give them a 10% wage increase and come out in the same financial position as they were before the strike, provided they roll up the lost production/sales within the financial year without paying overtime? which is usually the case because production is usually so low that a slight acceleration is not noticed by the sheeple.

    And as for the unions WTF?
    If you go, or stay on strike, more that 4 days for every 1% increase, you are going backwards (the break even is 3.65 days per 1%) unless you can get overtime to catch up with lost production.
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    Diamond Member Justloadit's Avatar
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    Unions do not do logical thinking.
    There usually is negotiations long before strikes occur.
    The unions are the ones who seem to ignore agreements.
    Usually agreements are an increase of x amount this year, and x again next year, however the unions seem to ignore this and again go on strike the next year. I think in their opinion, agreements are for employers to keep not for union members to follow.
    Victor - Knowledge is a blessing or a curse, your current circumstances make you decide!
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    Platinum Member desA's Avatar
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    Dave A

    It really looks like there's a serious structural problem in the SA economy right now.
    The structural problem began with enforced BBBEE.
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