Tuesday, November 11, 2008

So, I'm fielding lots of questions about how the economic slowdown is affecting my food and wine business.

The glib answer is that in times of trouble people take solace in drink. That's actually and thankfully not true.

The deeper answer is: nothing dramatic, but lots of interesting small trends, some of which cancel each other out. Our suppliers are mostly ever more keen to be paid on time (which suits us, as we usually pay COD anyway), and are ever more keen to do deals. So that is, net, a plus for us, and for you, dear customers. Imported goods are becoming more expensive as the Australian dollar has tumbled, though we weren't complaining when the dollar was rising and imported goods were becoming less expensive.

Customers are definitely spending less on restaurants and are eating and entertaining more, at home. That's a plus for our Courses that are used as a DIY at-home social event. And Christmas? There'll be fewer companies buying hampers for their staff or clients, though consumers I think will splash out a bit after some months of being frugal.

Falling fuel prices are taking pressure off our freight suppliers, which is good, though we still lament the fact that in Australia we don't have a more competitive freight system that might allow for novel and customer-friendly things such as weekend deliveries. Now that would be something worth drinking to.


 

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