There’s no doubt that many business owners and managers will have hundreds of questions and concerns about the direct impact of Brexit on organisations. But what about the effects on the end consumer? It’s essential that businesses understand how buying trends and consumer rights may be affected to help you plan ahead.
Through our Brexit Hub, we offer support on a business-to-business basis to ensure you are trading under new rules and regulations. However, below are some areas where your customers could be impacted. These areas are purely predictions and possible scenarios and are not certainties, but hopefully they can provide some clarity for your business.
Consumer rights
Many EU-based consumer rights have been incorporated into UK law so there shouldn’t be much difference whether there is a deal or no-deal. These unaffected rights include refund protection.
As of the 1st of January 2021, if you buy goods from Europe to sell to your customers with a refund policy, it would be a good idea to speak to your supplier about if this will change and update your own policy to reflect any updates. If consumers wish to seek legal action against EU based traders, enforcement from a UK court may be more difficult to achieve.
Tariff increases
Some tariffs could increase – your business may be in a position to absorb some of these costs, or you might have to adjust the prices of your products which could alter your customer’s buying habits.
Product delays
It’s possible we could see logistical delays as we approach the transition date. Especially in the instance of a no-deal, many goods including fresh food imports could be in short supply. It may be worth exploring a strategy on how to manage your customer’s expectations if you are worried about shortages.
Pound to euro
It’s difficult to say whether the pound will rise or fall following the transition date if we get a deal. And it’s possible that with a slight drop in the pound, this won’t have a significant impact on consumer prices. However, a no-deal scenario could amplify this impact considerably and costs could rise if you import certain goods.
