Price Rises Considered

Press, Volume CVIII, Issue 31762, 20 August 1968, Page 1

Price Rises Considered

In spite of the end of the price freeze, Christchurch retailers and manufacturers do not appear keen to put prices up because of fear of buyer resistance, especially in the competitive grocery field. Manufacturers of grocery lines thought that to put prices up immediately or within a month or so of the lifting of the freeze would invite the housewife to change from one brand to another.

The sales manager of the I.G.A, retail group (Mr B. Johnson) said yesterday: “We will not make any increases ourselves. The only increases will be if manufacturers increase their prices to us. “1 have had notification of only one price increase and it was for a minor line. 1 think there will be a general reluctance to make any changes for a while. “The Government has indicated that it will not hesitate to act if it feels that price increases are not justifiable. Even in instances where manufacturers’ price increases are justifiable, I think there will be reluctance to increase prices. The housewife will be watching closely for a while and putting up prices could create customer resistance for a particular brand of product. I think the price increases will only go through gradually. There will eventually have to be increases and they will be justifiable ones.” The chairman of directors of P.D.L. Industries, Ltd (Mr R. H. Stewart) yesterday said that his firm would not put prices up now that the price freeze had lifted. “We will absorb the 5 per cent general wage order and devaluation costs,” he said. In a new price list his firm intended to maintain the same prices as those issued at the beginning of this year. The general manager of Crown Crystal Glass (Mr J. K. Dobson) said that his firm had no price increase proposals,

A Christchurch textile manufacturing firm, which did not wish to be named, will increase the prices of some of its standard lines of underwear because it says its cotton import costs have risen 40 per cent The firm said that the increases in garments with cotton had been assessed in March and would have been effective from June 19 but for the price freeze. The increases were only in certain lines.

The assistant general manager of the D.I.C. Ltd (Mr C. W. Ellingham) said that his firm was not putting up prices

because the price freeze had been lifted. But as invoices came in with new goods from overseas affected by devaluation, obviously the prices would have to go up. The price of New Zealand goods was not expected to increase till such things as the general wane order and the cost of imported raw materials increased by devaluation had found their way into the cost structure of the New Zealand manufacturer. “We expect no widespread increase in retail prices within the next few weeks,” said Mr Ellingham.