Saturday 13 April 2013

Super discounts from the multiples & buying habits


Having spoken with several reps from suppliers of kitchens and their related accessories including solid worksurfaces / appliances, they are all saying pretty much the same thing that in general the independent kitchen studios are quite quiet at the moment and January, February and March have not been good months, however the sheds and multiples have seen an upturn in business due to their perceived massive discounts and even under the table discounting (non advertised discounts to get the sale). I have been told straight from the horses mouth from one particular company "To get the sale whatever it takes" and they have done so, yes with reduced margin but they got the sale, some may say this is fool hardy (MFI) did this and look what happened, I personally think that this is a game between the sheds and multiples to out do one and other and to gain market share from the others and they do not even consider the independents as a risk to them in becoming number 1.
The above tells me that the general public still believe that the "sale" discounts on offer are genuine and it seems they are being sold to on price rather than what is best for them or their circumstances.
Another big player who just seem to be getting bigger is Howdens, in my view they are successful because you can go and pick it up or have it delivered virtually straight away, and the local tradesman who convinces the unsuspecting client into believing that they are getting a massive discount because they have a trade account with them. Howdens are not the cheapest nor the best quality and how long will it be before they sell directly to retail customers and not just trade, if not doing so already.
One thing is for certain the general buying public perceive the sheds, multiples and Howdens to be offering a value for money product at the best price without the need to shop around, but the customers that do shop around are obviously not getting the right design that suits them, they will then go to an independent and get a better design / service but because the kitchen in the main has been designed correctly it can sometimes be more expensive as the independent is offering a better quality product across the board, this can then create tension in some cases as the customer is expecting the better design and product for the less expensive price they were quoted from the shed. What do you think?
Russell