Deceuninck absorbs profile price rise to support customers’ sales
Published by Lucia Di Stazio for Deceuninck Ltd in Housing
Roy Frost, Deceuninck's UK MD
No one likes price rises. But with rising energy and transport costs, they keep coming. There is not a lot we can do in the UK to ignore them, the costs of products and services affected by them, or raw material cost increases.
The problem is if retail installers lack the confidence to pass on those increases to consumers then they weaken their margins and ability to grow sustainably. That’s why, as part of a new strategy, Deceuninck UK is absorbing the current round of cost increases rather than raise prices, as others are doing. Instead, it has invested in extensive technical and commercial innovations and sales tools to help its network of fabricators and installers compete more effectively and grow.
“There’s always pressure to follow the herd,” says Roy Frost, Managing Director Deceuninck UK, “to take the opportunity to recover costs when your competitors do, especially with profile price rises of 4% to 7.5%. But, we’re not going to because Deceuninck’s restraint has to be seen as part of a bigger picture. For years, installers have struggled to pass on price increases when their competitors have been discounting to win business. So, unable to pass on the full increases, fabricators have been absorbing them. This has affected hardware, sealed unit and systems companies. Margins have weakened along the entire supply chain and damaged the industry as a whole.
“At a time when the industry needs more innovation – commercial as well as technical – to help fabricators and installers sell more effectively at higher margins, most systems companies have cut back on R&D and innovated less because returns have been poor. As a new Managing Director with an Everest background it is easier for me to see the consequences of this weak consumer interface. I believe the industry has many frustrated business builders, fabricators and installers who have found it hard to fulfil their ambitions because we’ve not provided them with the right tools and support to grow sustainably. I’m determined to change this and our new strategy is geared to releasing their potential. If that helps them grow, we’ll grow too.
“The Deceuninck business we’re building in the UK is uniquely well placed to empower fabricators and installers who believe they can do better,” Roy confirms. “So, if there are any frustrated fabricators reading this who have the potential to double their sales and are being held back by a lack of confidence at the consumer interface or a lack of investment from their suppliers, call me personally on 07808 365234.”