Green Deal Hopefuls Show Poor Last Quarter Trading

Argos down 8.8%. Thorntons down 4.2%. Halfords down 4.8%. Mothercare down 3%.

Just yet another indication of how bad the retail sector has suffered over the last 12-18 weeks. Some have suffered so bad that they have gone into administration, like Blacks and La Senza.

The two most striking figures to come out of today's splurge of data reports are the ones to come from Tesco and Homebase, the two massive companies hoping to make an impact on the double glazing industry when the Green Deal (hopefully) comes into force in October of this year.

Homebase released figures today that showed a 2.6% drop in like-for-like sales in the 18 weeks up to Christmas from the year before. While Tesco over the same period posted a large and unexpected drop of 2.3%. This was so surprising and worrying, that Tesco shares had dropped 15% by 9am this morning! They have since recovered slightly to 13.5% at the time of writing this.

I don't know whether the Homebase drop in sales was expected, but I know from reaction on TV that people were definitely not expecting such a fall from Tesco. Both companies will have invested quite a lot of time, effort and money in setting up the double glazing parts of their business. Falls in revenue at this time, combined with a struggling retail sector will only add extra pressure. They will want to make sure that the Green Deal is actually implicated so that they can justify their investment in the double glazing market and hopefully regain some of those lost sales.

2011: How The High Street Was Hit

2011 was a very tough year for the high-street. It never seemed to be out of the news. Either someone was in administration, or someone was about to go into administration.


I found a website which lists the retailers that have gone over the course of 2011. Warning, the list below is a bit of a long one, but I'm writing it to make a point of how badly the high-street is struggling right now (I've highlighted the bigger and more obvious companies):


Hawkins Bazaar
D2 Jeans
Barratt's/Priceless
Cooks Bakery
Broadmarsh Centre
MFI
Best Buy
Comet
Alexon
Walmsley
Floors-2-Go
Lombok
TJ Hughes
Jane Norman
Habitat
Homeform
McCormick's Music Shop - iconic music store in Glasgow
Life And Style
Haldanes
Focus DIY
ETS
HiHo Jewelers
BeCheeky - online retailer
Oddbins
Alworths - successor to Woolworths
Easy Living Furniture - retails trading name of Sofas UK
The Officers Club
Henley's
Dekko
Autoquake
Shakeaway Milk Bars
Arrogant Cat
Triumph Furniture Company
Bennets
Fenchurch
Ollie & Nic
Auto Windscreens
Cattles
JJB Sports
HPJ Jewelers
British Bookshops and Stationers 
Cruise
Balls Brothers
Suits You
Stokes
Confetti
Mad O'Roukes Pie Factory
Thoughts
Vergo Retailing
Fashionair
Laser Electrical
Labsport
Faith Shoes
Envy!
Not Only Shops!
Specialty Retail Group
Ethel Austin
Adili
Diamonds and Pearls
Adams
D2
Head
Virgin Cosmetics

Total store closures: 2469
Total job losses: 24,025

Stats from: http://www.retailresearch.org/whosegonebust.php 

Sorry you had to read all, that, I was just making a point! We've already had La Senza, Blacks Leisure and Past Times fail this year.

The high street is still very important to the economy of this country. It still employes tens of thousands of people up and down the UK. These are very valuable jobs in a time where having a job is increasingly considered a privilege. 

Maybe the high street is a bit dated. I think it still plays an important role in business. But maybe their presence should be in a different capacity. Improvements and changes obviously need to be made. Investment in the streets themselves to make them look more desirable would be a good start for the Government to make. Shops need updating, rents need to fall to ease the pressure on retail companies. Perhaps stores need to be integrated with their online portals more. Click and collect services for more stores will drive internet users through the doors to pick up their goods.


I'm not claiming to be an expert. Not like Mary, queen of shops! This was a clever little move by the Government. If anyone knows how to improve a high-street store then it's this clever lady. I'll be interested to see some of the ideas she's got and how she's going to put them into practice.

How Long Left For HMV?

HMV announced figures today that in the 5 weeks leading up to Christmas in 2011, sales were down 8.2% in comparison to the same 5 weeks in the year before.

You know things are bad when the company itself is saying that it may not be around in the coming few months! However according to reports, the suppliers to the high street chain are still backing the company, which is probably the most important string to the HMV bow right now. If they lose the support of their suppliers however, they might as well shut up shop now.

The big question here is what has caused HMV to be hit so hard? It lost out mainly due to being on the back foot when it came to the digital music revolution. iTunes from Apple really hit the company, as well as others, very hard indeed. In fact iTunes sales account for over £2billion per year in online music sales in the UK. Other companies like Amazon have adapted a little bit better. They've created their own music download section, though it's nowhere near as advanced as iTunes, at least they're making an effort. HMV on the other hand have been very slow off the mark. They have tried to update their online music operations. Their site looks well laid out, better than the Amazon download site. They have a list of 8 million songs to choose from, and the prices are very similar to iTunes. But because they were so many years behind Apple, most people's default choice of online music store is now iTunes. They won't be able to catch up.

Speaking from a personal point of view, their prices in-store are far too expensive. Why would I pay £15 for an album when I could pay half that online? Spending another £7/£8 just to own the case isn't enough justification. 

HMV have spent a little bit of money trying to update their stores. The thing is, I never found their stores dowdy or offensive in the first place. I always found it a nice environment to be in. So money wasted there if you ask me.

They've also made their way into technology. They sell things such as iPods, iPads, speakers and other musical hardware. The problem here again is price. Online these items are cheaper. And if someone is going to buy something like an iPad, or speakers, they're more likely to go to those suppliers direct and pay a cheaper price.

I think the overall problem here is that HMV have an old business model that has just been caught out by the advances in internet shopping habits and the recession. I can see the chain going into administration sooner rather than later. Hopefully it will find a buyer. I've always been a fan of HMV. In fact I have a points card with them, which I probably need to spend before they go! Someone, possibly one of the guys from Dragons Den, needs to take over the store and inject some new passion and ideas. Maybe reduce the high-street presence, as there probably isn't a future with that, and focus more on creating a bigger and better online business.

The employ thousands of people in hundreds of stores. It will be a sad day if they were to go from our high streets altogether.

You Can Be Too Bullish

Social media sights and blogs are full of companies stating how well they seem to be doing. It's been like this all the way through the recession years. Now some of these bits of information are probably going to be true, despite no-one being brave enough yet to post any figures to back up what they're saying. I also fear that the mass majority of reports on how well many are doing are pumped up to save face, to prevent any bad information getting out into the public domain. The problem is, if your company goes bust after you've said how well business is, you're going to have some serious egg on your face.

One perfect example of this is Lakeside Glass who went bust a couple of months ago. They had a member of staff on the now defunct Glasstalk forum website who constantly talked up how well business was. How they were taking on massive contracts and oodles of new customers on a regular basis. In just a couple of years this company is now bust. All this over-positive, sickeningly bullish bullshit talking now looks even more stupid than it did when the company was trading.

Reporting on positive news is all well and good. But there is a fine line between truth and wildly overstating the actual state of affairs. From what I've learned observing these statements from people and companies is that it's better to provide some sorts of numerical proof to back up what you're saying. People using social media are becoming ever more skeptical about information they see, so proof is becoming ever more necessary. Also, it's also pretty easy to spot the bullshit from what's genuine.

You've probably all noticed how little I talk about facts and figures from the company I work for. That's for two reasons. Firstly, we're not a limited company so we have no need to publish any figures what so ever - hence utter privacy - so I don't see the need to talk about it online, no matter how positive or negative things are. Secondly, the minute I talk about how 'well things are right now', I open myself up to scrutiny of what I'm saying.

So, in the future, if you're going to talk about how well business is, make sure it can be proved correct. Don't leave yourself open to ridicule if things go bottoms up!

P.S. the industry has shrunk from £5.4billion to £3.7billion in the last few years. If all the statements online about how well companies seem to be doing were true, our industry wouldn't be in recession and it wouldn't have lost £1.7billion in value!

High Street Takes Another Hit

It was announced today that for the second time, high street shoe retailers Barratt's is to go into administration, putting nearly 4000 jobs at risk.


The first time their owners went into administration they had to reduce the number of stores by 220 from 380. In total the brand has 191 stores throughout the UK on the high street and in malls, it also own the Priceless Shoes brand.


The Bradford based firm blamed the tough economic trading conditions for it's further difficulties.

Administrators Deloitte said that they were "working closely with suppliers to ensure the business has the best possible platform to secure a sale, preserve jobs and generate as much value as possible for all creditors".


One wonders when the assault on the high street will ease off. Barratts joins a long list of businesses that are either in administration or have fallen prey completely to some of the worst financial and economic conditions since the Great Depression. 


High street chains provide tens of thousands of jobs. Something needs to be done to help the high street remain a viable shopping option. There are too many towns home to baron, once-bustling town centers.

Now Is Not The Time For Striking

Everyone seems to have an opinion on the strikes that happened last Wednesday. So here's mine, and I'll try and keep this as swift as possible. On a subject like this it's easy to get carried away!

For me, striking at a time when the country is struggling to get it's economy back on track is down right selfish. The point of the Unions is that their workers signed a contract which said their pensions would be protected. However, we live in extraordinary times, therefore the menial contract means very little right now. People and companies have to be open to constant change and adaptation, if the economy is to function as smoothly as possible. This is something the private sector seems to understand. Which is also the reason why the private sector always seems to get annoyed at the public sector. The private is the first to feel the effects of any downturn, but just seems to get on with things, no matter how unhappy they might be. This isn't something that can be said for the public.

These strikes also took place while negotiations were still on going, which to me is quite rude and shows very little respect for the talking/negotiation process. It was always my thinking that measures like this were only taken when every possibility of a positive result are exhausted. However it seems that negotiations with the Government were not exhausted, so more time should have been given.

This is only my brief opinion right now, and will publish a far more elaborate and detailed report as to why these strikes were very much the wrong course of action to take.

Total Windows And DB Glass To Strike

It seems the growing trend to protest this year has now spread to our own little sector of the economy. It is reported on BBC Devon that Total Windows and DB Glass, both owned by the Epwin Group, are to go on strike over pay - more specifically due to not having a pay rise for the last three years.

According to the BBC Devon site, no one from Epwin Group was available for comment.

Whenever the talks of strikes comes up, the accompanying argument of the principle of the thing is also debated. According to www.thewestsouth.blogspot.com the strike was approved by over 77%. Now that's a positive response in any way you look at it. But is striking the right option?


To me, striking should only ever be the last resort, and I know this is the opinion of many others. I completely understand that they wish to be heard and want to stick up for themselves and their positions. But while taking industrial action, they should also consider that they are lucky enough to have a job (which is paid over the minimum wage) to strike over.

Personally, I wouldn't be striking right now. It is no only the Epwin Group who cannot afford to raise wages at this current time, most businesses haven't, and haven't for the last few also. In fact most businesses have cut wages in order to reduce the wage bill to make sure of the continuity of the business. Striking will only alert the company to those who are most militant and wish to cause disruption in order to get themselves heard.


Negotiations are the most sensible route to take right now. Both parties need to get round the table to sort something out. With Epwin being such a large company, large enough to be recognized by the BBC, this sort of negative publicity will only serve to damage the name locally and nationally.

No Growth Till 2015

The latest report from Palmer Market Research makes for rather depressing reading.


It's latest research shows that 2010 was the fourth consecutive year of decline for the industry. With an industry valued at £3.7 billion for 2010, we are a way off from the high of £5.4 billion in 2006. 2010 saw a 4% in value compared to 2009. 


This year is set to see an eye watering 10% dip, with absolutely no growth for our industry until 2015, and even then this growth is set to be only very slight, which gives it scope for possible no growth if things don't improve as planned in the medium turn.


Private sector home improvements represents 80% of the industry. So falls of 10% in a single year really do have serious ramifications.


In 2010, the windows market was down 2% from 2009. And conservatories were down a massive 12% from 2009 also. The news gets worse for conservatories - 2010 saw the worst sales since 1995, with only 92,500 being sold during the whole of the year. It seems consumer confidence for big ticket items is simple not there in any amount.


The speedy slowdown of PVCu panel doors continued, showing a 22% drop in 2010 compared with 2009. But good news if you're a composite door company! 2010 saw a massive 30% increase when compared to the year previously - the silver lining in what is a very big, dark and menacing cloud.


PVCu remained the material of choice by a long way, having an 84% slice of the pie.


What this report confirms is that our industry, as well as the rest of the UK economy is set to enter a second recession, with consequences far more serious and further reaching...probably. Our industry is going to have to go through some very painful changes if it is to survive, and for a couple of years longer than what I had originally predicted.

Scottish Glaziers AC Yule And Son Collapses

Scottish glazing firm AC Yule has become yet another established name to fall victim to the harsh economic climate. The company announced it has been placed in administration with KPMG, putting 211 jobs at risk. Here is the full article, from the site www.building.co.uk: 



Scottish glazing firm AC Yule and Son has collapsed into administration, with the loss of 211 jobs.


The company, an established window fitter and glass processor, confirmed it will keep on 61 staff to try to complete current projects and outstanding orders.


Blair Nimmo and Gary Fraser of KPMG have been appointed joint administrators, and are seeking a buyer for parts or all of the business.


AC Yule is headquartered in Aberdeen, and has branches in Elgin, Livingston and Glasgow.
Blair Nimmo, joint administrator and head of restructuring for KPMG in Scotland, said: “As a result of prolonged difficult economic conditions over the last three years, AC Yule & Sons Ltd sustained a reduction in its turnover together with considerable erosion in its margins.”


“The directors proactively implemented a number of restructurings - both financial and operational - which involved significant additional share capital being injected. Unfortunately, despite these actions, losses continued to ensue which led to the directors concluding that they had no option other than to seek the appointment of administrators.”



Obviously KPMG will hope to find a buyer for AC Yule. But with only the biggest of the big boys with the cash to perform such acquisitions, the chances of a purchase in such an anxious economic situation seem slim at best. However, I wish the company and the staff all the best. I hope they do find a buyer, I hope that as many of their employees retain their jobs. And I hope for all those that do unfortunately lose their jobs that they find new and rewarding ones soon.


The above report can be found here.

Economic Woe Tightening It's Grip

Details released by Insight Data show that they have quarantined 847 companies which have changed their details, moved or have become completely unreachable.


For all the efforts made by companies to stay afloat, the dire trading conditions are obviously still proving too much for many to handle. My feeling is that more than 847 companies will have disappeared this year. 


Over the past year I've made a conscious effort to keep these posts more positive. I've always believed that if we were more positive about the outlook then maybe we could help push the industry into more positive territory. But over the last few weeks, with feedback from our sector becoming ever more negative, with Europe in economic meltdown and our recovery slower than after the Great Depression, I can't help but feel we are all going to be in for a very few tough years ahead. With many more double glazing companies set to hit the wall.


So what can be done to help prop up an industry which is practically on life support? Well, not that much to be honest. Public confidence in spending is in the gutter. I could say that banks could help out by lending more, but their lending policies at the moment are so tight they make Yorkshire folk look more generous! The Green Deal is still a year off, and even so, I think that most of the business created by that will be swallowed up by some of the major national companies muscling their way in, so we'll be left to fight over the scraps.


The window industry is in a funny old position right now. We have the best windows ever made right now, we have the highest energy ratings - with energy conservation high on people's agendas, the logical outcome would be for the industry to be boosted. But we've arrived at this point at a bad time. Anemic financial health has stopped any potential boost in it's path. Just think how much money our sector would have made 5-10 years ago with all the products at our disposal now! 

Over-Diversification

Two to three years ago, as the recession was taking hold and the industry was battening down the hatches, we were told that diversification of the products we sell was one of the ways we could make sure our revenue streams remain flowing.

The idea was good in principle, but is diversification leading us to take our eye off the ball? What I mean by this is that our staple products of windows, doors and conservatories may have been slightly overshadowed by the effort to establish new products into the portfolio. 

New products often take time to establish, within the company. It takes time for the public to recognise, which often means to draw them in, low profit margins have to be applied if the product is a small one. Large products can demand a larger margin, but in a recession where people are tightening their belts, big ticket purchases are few and far between.

I'm not against diversifying the range of products we sell. But I do think that if we add new products to the range, they need to be in conjunction with the staple set of products and services sold. Some could be in danger of putting too much effort into new products and leaving windows and doors behind, which to me is dangerous. 


Personally, I'll stick with my windows, doors and conservatories - it makes up the bulk of our work and it's working for us right now.


Feedback welcome!


PS: I will make more a conscious effort on here and Twitter in the future!

The Slow Road To Recession

Sorry for being a bit negative, but I've been looking at various bits of economic news and figures, and unfortunately things don't look that great.


The cost of living has continued to rise at a pace in which wages have not been able to keep up with, limiting households' spending power. But over the past couple of weeks more and more economic figures here and around the world are pointing to a double-dip recession. 


Unlike the first recession where people were far less restrained in their spending, if a second recession were to hot when people have already tightened their belts considerably, we could find that a second recession could be more damaging than the first.


This restrictive spending comes amid a backdrop of Europe slowly drowning under massive sovereign debt, which looks more and more likely as the weeks go by that this debt is going to go unpaid, and Governments, especially those of Greece, Portugal and Spain are likely to default and be declared bankrupt. Of course if this does happens, there are dozens of banks, and many on these shores, who are likely to lose billions. And we all know what happened last time banks didn't get the money the were owed.


When you look at the UK specifically, things haven't looked great for the last three quarters. Economic growth has been revised down various times, both by Government and other fiscal bodies. Interests rates may as well not apply they are that low, and the Government has implemented deficit reduction plans that cut way too far way too quickly.


Looking at the window industry, I don't think the image is that positive either. I know some companies out there are doing alright. These are the ones that are actively winning the business, signing up contracts with decent profit margins which are going to see them through the quiet Winter and Xmas/New Year period. But this unfortunately doesn't represent the whole industry I feel. There is still a lot of our sector struggling out there, and I fear that a lot of companies won't be here to see the introduction of the Green Deal which could give the industry a boost.


It's definitely time to get our recession mind sets back on. I think the double glazing industry did better than expected through the last recession. I think if we have the same grit and determination to stay around it will give us a fighting chance should we all be hit with another recession.

Global Recession No 2?

I know this is going to sound like a negative post, but I don't think I can just skip over the subject as if it's not happening.


Worries about European and American debt has caused the financial markets to sell off their shares in a manner not seen since the financial crisis 3 years ago. Markets are spooked by the fear that governments won't be able to pay off their debts and that the measures they are taking to reduce their budget deficits aren't far reaching enough.


The biggest European risks at the moment are Spain and Italy. Today the ECB announced that they would start buying up Spanish and Italian debt to try to ease the worries in the markets, but all Asian markets closed sharply down, and at the time of writing the FTSE 100 is down 1.5%. Last week alone the FTSE lost over $262 billion - that's about the same as our whole budget deficit in sterling!


So what is the going to mean for the spending public? Well this crisis is different to the last one in the fact that governments are struggling with their debts and not the banks, so immediate liquidity problems shouldn't be a problem. However, if a country was to default on it's debts, banks with money locked into those government would then start to take hits. It's then when we could start to see banks coming under the strain again.


The big worry from our point of view is how much media coverage this story is getting. The big headlines and 24 hour analysis isn't going to inspire the public to go out and buy a house full of windows and doors. I know some of you are going to think I'm being hypocritical for writing this post, but as I've said before, this site gets nowhere near the coverage the news channels do, so won't really cause that much harm. 


There is a potential for this crisis to be as bad as the one in 2008. At the moment the markets are very volatile, full of knee-jerk reactions because of the potential unknowns. Those buying and selling just need to keep their heads. Over reactions could cause this situation to become unnecessarily worse, plunging the world into another recession.  

Month In Review: February 2011

To put it simply, February was no better than January...but at least not worse!


We had roughly the same amount of leads as January, the same amount of sales and the same amount of revenue. Pretty much a copycat month. But as February is one of the worst months  for the double glazing industry, this is to be expected.


One thing I did notice during this month, is that rival companies may have increased their prices. When we were quoting against some of our usual rivals, the gap between us and them seemed to be less than what it has been in the past. We have decreased our prices, but maybe the tough economic conditions has finally forced other to increase their prices as they probably can't absorb any more rises.


Also during February, I think we had the most sales calls from reps we've ever had! It must have been quiet out there, we were having more than 10 sales calls a day at one point. Ranging from people wanting to sell us company mobiles, trying to get us to change suppliers for our frames and roofs, loads from newspapers wanting us to advertise.


From what I understand trading is probably as tough as it was since the worst period during the recession. People are now starting to worry for their jobs, wages aren't rising and the rocketing cost of living are all conspiring to dampen any sort of economic recovery. It's time to get our recession heads back on and start to get out there and get the work in, it's there if you look in the right places, it'll just be a challenge making a success of it.

Reduced Profits For CR Smith

Dunfermline-based CR Smith has reported a profit of just £135,000 for 2010, 80% down from the £672,000 recorded in 2009.


Gerard Eadie, who has run the fmaily business since 1977, is planning to invest £600,000 in new vehicles, after investing £562,000 previously in new IT systems and a showroom revamp. Also in the plans is the upgrading of it's Cowdenbeath factory.


The brand got a significant boost in 1984 when they signed three year deals with both Rangers and Celtic for sponsorship of their shirts. 


Mr Eadie seems to be revelling in the challenge: "But we have always taken a very positive approach to our business and we are investing in what makes us strong and distinctive - our 
product and our presence. We're enjoying the challenge."


The chairman said: "CR Smith operates in a very tough market and current economic conditions have seen sales slow.


I wish CR Smith good luck. Investing during such volatile trading conditions is always a risk, but hopefully it will pay off for them.


You can find further reports at: http://www.bbc.co.uk/news/business-12591112 and http://business.scotsman.com/business/CR-Smith-offers-a-window.6725574.jp

The Bigger They Are, The Harder They Fall

Things are tough out there. Very tough. From speaking to people in shops and businesses, from what people are saying on websites and forums, and from what the experts on TV say, trading conditions have got considerably worse. 


Customer confidence has all but evaporated now. Minimal bank lending has stopped people's home improvement projects. Wage freezes and the threat of job losses have helped polarise the 'saving' attitude. With people very reluctant to spend money, this is going to renew the pressure felt on the double glazing community during the worst of the recent recession.


My personal feelings are that we are probably due for a big company to go to the wall. The bigger companies tend to have the highest advertising bills, the biggest overheads and the biggest outgoings. Advertising, manufacturing and running costs all have to be paid for. But if there isn't the levels of demand to make sure these bills are paid, then difficulties will occur. I think that we are due to see a big one go bust.


Just a thought!

UK Economy Contracts

The UK economy has suffered a contraction of 0.5% in the last quarter or 2010. The Treasury has said that the winter weather may have contributed to the majority of that figure.


I'm afraid that this is only going to spook the public into reduced spending. And spending this month hasn't been great from the public. This is all starting to have an impact as I've found out this morning that one of our competitors has had to lay off some fitters. 


The beginning of 2011 hasn't had the rip-roaring start many were hoping for. This year could well be a much tougher one, just as the experts and Government has said it would be.

The Impact Of High Fuel Costs

Fuel costs are rising to record highs every week, and it's the very high cost of fuel which is going to threaten companies and the economic recovery as a whole. 


One scary piece of information the BBC News website featured the other day was that it now takes up to £75,000 a year in diesel to fill a HGV. If your a manufacturer or transport company of medium size, say with 10 HGV's, three quarters of a million pounds is way too much to be spending on fuel. This is the reason why your bread, meat and cereal is costing you more!

• Food costs are now at all time highs worldwide
• Energy price rises are set to add £560 million to household costs this year
• Wholesale goods and raw material prices are rising fast

Because fuel plays such a massive part in every size of economy, the recovery of these economies depends hugely on the price of oil. But every step every business and household takes to get out of the mire, it's offset every time oil and fuel goes up.

So what are we to do? The public needs to put as much pressure on the government to do something about the costs. The situation I feel is coming to a head, and I think David Cameron sees this, hence his recent comments about a fuel stabiliser. But we have to keep this issue on the minds of the people in government to make sure it doesn't fade away. On a personal level, we all need to be looking at ways to streamline our spending to lessen the impact of the high fuel costs, and the same goes with businesses. 

The end result by the end of the year could be plenty of small to medium size businesses closing their doors due to unsustainable costs.

Look Beyond The Gloom

Today was a historical day. The Government has announced the deepest spending cuts for almost 80 years. This may sound terrible, but when you take into account that, according to the BBC, spending is only being reset to the levels of 2006-2008, it isn't so bad.


So, let's take that not-so-negative point, and take it further. The window and door industry has lots to look forward to. There are two rapidly expanding markets for companies to take advantage of. The first is composite doors. A previous post of mine explained that for the first time (and according to HWL Leeds who install Solidor composite doors) last month saw composite door sales overtake PVCu panel door sales. But it didn't take them to tell me, and the rest of us that composite doors are the future of the residential door market. All companies need to do is get themselves a quality supplier, a few showroom samples and then they are on their way to increased door sales.


The other market that is going to expand rapidly is the energy efficient window market. This was expanding slowly anyway, but due to the changes that came in at the beginning of the month this will be forced to expand at a much quicker rate. So again installers need to get themselves a quality product, preferably an A rated one for marketing and sales purposes, some good showroom samples, and they will find themselves with a lot more USP's than their lethargic competitors. 


One other positive I've noticed over the last few months is that customers are really now coming to their senses and realising that the companies out there who fit cheap rubbish, are the ones to avoid. They are now understanding fully that cheaper products mean poor quality, inefficiency, and they will have to be replaced a lot sooner compared to their more expensive but better quality counterparts.


I think the recession has had a positive impact on consumers. Rather than shock them into buying the cheapest of everything, I think they have started to analyse what they are really buying. On big ticket purchases customers are really doing their homework and weighing up the pros and cons and making a more informed decision. I think this has resulted in increased sales for those double glazing companies who sell a high-end product.


So, lots of positive things to bear in mind. Let's not look at today's cuts as a potential derailment. We need to keep our eyes on the ball, not let them divert, and we can navigate the tougher times just as well as we did during the worst of the recession.

1 Week Till The Spending Review

There is only one week left until the Government tells us how much they are going to be cutting over the next four years. And the big worry is how it will affect consumer confidence. That for me is the most immediate and important result.

Businesses up and down the country have seen either good stabilisation or a return to steady growth this year. But this is at risk of faltering if the public spending cuts cause those that work in the sector to suddenly cease their spending. The knock-on effect will then spread throughout the country to affect consumer confidence as a whole.

So the question is how do businesses limit the possible effects on them? I say get back into the recession mindset. If things are going to become more challenging, repeat what you did in the recession. Emphasize all your USP's to promote your business as better. If your a company selling high-end products, don't reduce your profit margin, your going to need that to help get through the tougher times. Don't panic and reduce them, if people appreciate the standard of product, they will still be prepared to buy at a higher price.

If your a company selling budget products, I would give the same advice, but be prepared to raise prices if you have to. Taking cost increases on the chin if times get tough again is going to put the business under extra unnecessary pressures.

So, just hold tight, and try to weather a storm which could last longer than the recession.