The channel is being hit by the falling pound because most vendors still price in dollars.
Sterling has fallen by as much as 12.5 percent against the dollar since February 2022. Prices will either have to rise or more gear will have to be sold to obtain the same amount of profit.
Vendors like dollars because that’s their home currency. But if a vendor planned to sell $40 million of kit in the UK in 2022 with a profit of $4 million, at July currency rates it would need to sell £32.9 million of equipment instead of £29.36 million at February rates. Sales increases of nearly 11 percent to keep your head above water rarely happen.