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The best advice I was given by one of the successful retailers I talked to recently was, "Nobody needs anything in this store". Likewise, nobody actually needs any of Hornby's products. Whether or not trading volume for margin will work for Hornby is presumably an educated business decision, but finding ways to keep customers loyal during hard times would probably pay off later. Currency exchange fluctuations are certainly one of the nightmares that can sink a business. But, should manufacturers react to short term conditions or plan for the long term? Short term planning is at least a certainty that will lull the shareholders into a sense of happiness. I think we may have to get used to some volatile pricing for a while.
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