We'll pay more for that soon, too: the rise in the dollar exchange rate has affected and continues to affect the prices of many consumer goods. One of the categories significantly affected by this increase is the category of electrical appliances, whose prices are expected to increase by 15%-8% after Sukkot.
Among the companies that announced price increases are: Hamilton importer of Xiaomi, Brimag, importer of LG refrigerators, Brown, Newpan, importer of Kitanaid, Haier, DeLonghi, Miniline, importer of Samsung, Electrolux and EEG.
Hamilton Group, importer of Xiaomi, said: "At the beginning of the year, the Hamilton Group initiated a price reduction of about 70% of products, which was made possible by the reduction in transport prices. Since then, the group has absorbed the rise of the dollar and the rise in global prices. Now, after several months of global price increases, we are forced to raise prices for new inventory that is ordered. At the same time, no price increase is expected on existing inventory."
Electrical appliances store // Photo: Joshua Yosef // Electrical appliances store // Photo: Joshua Yosef,
Newpan said in response: "In light of the changes in the currency exchange rate, shipping costs and customs, the company has no choice but to adjust its prices." Miniline and Brimag did not respond by the time the issue was closed.
Increasing imports on the way?
Daniel Bar Sadeh, vice president of marketing at the electrical appliance chain Olam HaCinema, told Israel Hayom, "Last Thursday we received updates from suppliers that they intend to raise prices. We have not yet received the new price list and at what rate of increase it is. In the meantime, they prepared us for it.
"Due to these increases, we are examining an option if it is possible to carry out parallel imports of various electrical appliances in order to keep the prices as they are. We are checking this with overseas by increasing imports themselves."
Because of the dollar's rise, Photo: GettyImages
A source in the electricity sector added, "The general announcement by importers was about an increase of 15-8%, but they did not specify prices. When importers warn of price increases, we take it seriously. Even when they set an increase rate X, we negotiate and are not necessarily willing to accept any increase. From our experience, even if a small part raises prices, and if and when the market accepts the prices, it gives approval to the other importers to raise prices."
According to Doron Eliezer, VP Sales of the A.L.M. chain, "On Chol Hamoed and in October we provide significant discounts. It's time to take advantage of the holiday season and discounts. In the products we have inventory, we will maintain the prices before the increase."
"Unprecedented move"
The Electrical Warehouses chain claims that just before the increase in the price of electrical appliances, the chain purchased the remaining inventories of electricity and electronics and will offer them to customers during Chol Hamoed Sukkot at wholesale prices that reflect a discount of 30%-15% of the price of the product as of today.
According to Erez Wassner, VP Sales of the Electrical Warehouses chain, "The size advantage of the chain, the importers' need to get rid of the inventories, the completion of the upgrade process of the warehouses adjacent to the stores, and the establishment of the 'surplus electrical warehouses' sub-chain, all enabled us to carry out an unprecedented move in terms of wholesale sales."
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