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  1. #1
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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?
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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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    Email problem 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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    Start moving back up into Africa ? I am seeing a small trend in this direction, bit nervous to say the least. After spending 20 months in Angola in a bush war and witnessing what I did, I cant see myself taking my wife and children up. Not that it is much safer at this point in time here in this country, my daughter was attacked again 2 days ago robbed at knife point at the robots in front of Macdonalds in Pinetown I am getting a little tired of my kids being bullied. They had a go at me in Pinetown at a robot a while back, one on either side of the vehicle, the one on the drivers side had what looked like a bayonet which he dropped out his sleeve, I think when they saw the 9 mm and I was ready for them they decided not to get into a gun battle with a knife...pity. The sad part is there is nothing you can do. There where too many people around for me to pick a fight.

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    You would think the unions would be fighting for more factories, better living conditions and job creation, instead they fight for more money creating less jobs.

    An example...Think back to the days of the domestic worker privileges. We had a lady living on our property, he boyfriend lived on the property, she got fed everyday, lived in a fully furnished room for free, took everything that was replaced ...ie old TV etc. She didn't have to pay for transport during the week, got a package deal when she headed home for the weekend, had political meetings around the dinning room table while the owner was at work. Now thanks to the powers, she brings her own food to work, pays for transport which is going up by the month (thanks to the petrol price increases) has to wake up early in the morning and sort out her life, she risks getting robbed while travelling to work everyday (has happened on numerous occasion to my domestic) has to pay for accommodation, etc, etc. The question...are domestic workers better off now?

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    A useful time to be selling expertise offshore.
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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.

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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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