Gima, the Garden Industry Manufacturers Association has predicted large price increase for the garden and outdoor toy indusr=try for 2011.
With Vat increasing retail prices by 2.1% in January as the start point, manufacturers also have to contend with rapidly increasing raw material costs, shipping costs and for many products a lower pound. MArgins also came under pressure this year as manufacturers were scared to increase prices due to the recession. The calculations are therefore that prices at the till will have to rise by 12% to cope with cost increases and to get margins back to the 2009 levels. anything less and the industry will be putting itself under pressure.
