How Long Until The Next Price Increase?

I don't want to jinx anything, but have you noticed that the price increase letter sent from our manufacturers and suppliers seems to have dried up?

There was a period last year where it seemed that nearly every week most of us were receiving letters explaining rather large increases from immediate effect or within 7 days. Glass price increases were the largest, with Pilkington raising some of their product ranges by about 40%.

However, for the last few months of 2011, and the beginning of 2012, I haven't heard of any upcoming price increases, from any area of the market - much to my surprise.

The cost of raw materials has continued it's steady rise, oil prices are back on the up, fuel costs are still painfully high and general running costs for businesses continue to rise. I fully expected more price increase letters before this point.

This pause in price increases is of course very welcome. Profit margins for every company are being stretched badly right now, any further increases will only add further strain. However I do feel that at some point this year, most likely to be late spring/early summer, there could be a raft of increases again. Companies right now will be looking at their accounts, their margins, forecasting further raw material price increases, and seeing whether or not they need to raise their prices. By the time these processes have been done, we're likely to be in April or May time. Of course I may be wrong!

If I am wrong, this will be good news. No one wants any more price increases, and the longer they take to arrive, the better for customers and just as important, profit margins.

Review Of The Year: 2011

I know there are about 3 and a bit weeks left of the year, but I thought I might as well claim my spot and be the first to do a review of the year...from my point of view anyway!

Uncertainty
Before the bad years, the industry could count on the typical buying pattern. Beginning of the year used to be quiet, spring would bring a steady rise in trade, summer would see a racking up of business, autumn would see a gradual slow down, November would bring a quick sharp boost in the run up to Christmas, then December it would be hardly worth opening the doors.


The past few years unfortunately haven't provided the window industry with this regular and healthy business pattern - and this year was no exception. From week to week, revenues would fluctuate. Lead levels would look like a roller-coaster if they were plotted on a graph! This creates terrible cash-flow problems for companies, which we all know is the lifeblood of every business. We have seen some companies close their doors because of poor cash-flow, not because the orders weren't there. Banks are suddenly becoming very quick to call in their money these days!


With growth in the industry not set to return until 2015, it looks like the windows market is set to struggle for some stability in the coming few years.


Deal Or No Deal? 
The Green Deal later on in the year certainly caused plenty of debate within the industry. The Green Deal is the Governments flagship policy to get Britain's homes up to a higher standard of energy efficiency, by providing loans via the private sector to homeowners to have improvement work done to raise the energy efficiency of their property.


The GGF worked hard on behalf of the industry to make sure that energy rated windows was included as part of the deal. At first everyone seemed to welcome the plan. But as we all looked into the finer details that were available, questions were then asked about the viability of the deal. The biggest question being would the plan even work if the banks and biggest energy companies weren't prepared to stump up the cash for these loans.


My biggest worry was that even if the Green Deal was established, non-PVCu companies such as Tesco and Homebase, who have now launched their own ranges of PVCu home improvement products, would wade in and steal most of the newly generated business that the Green Deal would have created.


The GGF says that it is working hard to make sure all size and manner of company gets a slice of the Green Deal pie. But I still fear that the commercial power and reach of some of the biggest companies will dampen any improvement for the smaller installation companies in our industry. 


There are still many questions left to ask and many more answers to come. I do sincerely hope that it does bring an equal opportunity for prosperity across the whole industry, as it desperately needs it. The plan is to be implemented in October 2012, I guess only then will we be able to tell if it is going to have a positive impact on an anemic industry.

Social Media Flexes It's Muscles
2011 saw for the first time in our industry how big an effect social media sites like Twitter and blogs can have. In June of this year I broke the story of Veka buying out the Bowater Building products group. This was information that some in the industry knew about, but this site was the first to make it publicly known.


The response on here and on Twitter was immense. Various page views and visitor number records were broken. My Twitter account was even spam attacked to force it to temporarily shut down. I had employees from both companies contacting me asking if I had any extra information. It got to the point where I was feeling rather uncomfortable about having to be the one to explain the state of affairs of the company they worked for.


I got the feeling that both Bowater and Veka wanted me to keep my mouth shut, but they both probably knew I wasn't going to. 


This was the first time social media had any sort of impact on the industry and how it behaved in the online world. It forced more manufacturers to talk. But it has also forced the boards of the bigger companies to maybe have a re-think on how they deal with any sensitive information. 


Social media now has a permanent place in our industry. Whether you are a business wanting to make more business contacts. Whether you're an installers wanting to reach out to more potential customers. Or if you're an industry commentator with a blog of your own and an active Twitter user, social media now has a huge part to play in how our industry is run.


Year Of The Increase
High inflationary costs finally took it's toll on our industry this year. During the first six months of 2011 there seemed to be a never ending stream of letters from suppliers and manufacturers explaining how they would have to be increasing their prices within a matter of weeks.


The worst culprit for this seemed to be the glass manufacturers - most notably Pilkington. I think many of us will have received a letter from them explaining that pretty much all ranges of their insulating and tinted glass would be going up between 10% and a staggering 40% or more! 


The recession years of 2008/2009 and early 2010 finally translated into price rises in 2011. These were highly inconvenient as most companies were adjusting to what was a slow start to the trading year thanks to some of the worst winter weather in 30 years, and what was generally going to be one of the worst years for the industry in quite a long time.


The dilemma left for businesses was huge. Do they raise costs to cover the increases from their suppliers, meaning what was left of their profit margins was left in tact, but risk losing business as a result? Or did they absorb yet more increases, eating up what was left of a very thin profit margin already? From what I could tell and have heard over the last 12 months, it was probably a 50/50 split.


2012
So how does 2012 look? Most of you will probably agree that next year is going to be tough. I would go one step further and say that 2012 is probably one of the toughest years many of us will ever experience. No economic forecasts show any prospect of growth, which will also hit consumer spending at the same time. Prices are set to rise throughout next year as the price of raw materials remain high and inflation adds further pressure to the cost of materials.


January is the hardest time for our industry. Trade is still very slow, the poor weather puts another dampener on things, and tax has to be paid in January. This is the make-or-break time of year for companies. If a business is going to go to the wall, it's more than likely that it's this time of year when it's going to happen. The industry could see a lot of businesses pushed over the edge into liquidation. I know I seem to say this every year, but the economic conditions seem hostile enough for this to happen.


Despite what is going to be a very a tough year, I still believe that companies can make the most of what business is left to get out there. Companies have to be at their most fluid and adaptable if they are to steal as much market share as possible.


It can be done. We did it during 2008/2009 and we can do it again now. I think it will be tougher, but I think we are one of the most adaptable and durable industries the UK has to offer. We'll all just have to take it week by week and keep analyzing how we do our business.


I want to thank all of you for your support this year. This has been the best year for my blog so far, and for that I am greatly appreciative! A huge thank you to all my readers, regular or occasional. And a big thanks to all those who left a comment and joined in the conversation. I hope to see you all next year!

Have a very merry and relaxing Christmas and a fantastic New Year!

No More Price Increases?

I don't want to tempt fate here, but has everyone noticed that the steady stream of price increase letters from suppliers seems to have dried up a little?


During the spring and early summer installation companies were inundated almost every week with letters from suppliers explaining how costs were going up. Glass suppliers were the worst offenders, as were Pilkington, with regular increases on the price of their insulating glass of 10-40%.


I'm wondering if the price increases have plateaued somewhat. We haven't had any at our place for a month or two, which based on the regularity of previous increase letters, does seem quite a while.


There was a huge fear back in the spring that the plethora of price increases were going to cripple businesses into shutting their doors, but up to now I haven't heard any reports of mass bankruptcies and closures.


I don't doubt though that the increases felt over the last 18 months will have had some impact on businesses. Margins will have been squeezed ever further, redundancies will have been made, making trading ever harder.

Update On Oil Price Crusade!

A couple of weeks ago I received and email from Justin King, CEO of Sainsbury's, in reply to my email questioning petrol prices. So below is his reply, and my reply to his after that:


Dear Mr ************

Thank you for your email. I understand your concerns about fuel prices, especially as they are at a record high.

It’s extremely important to us that we offer our customers great value through our entire product range and our additional services, such as our petrol filling stations.

The fuel market is extremely competitive and prices are very unstable in the current climate. As you pointed out, prices had dropped when you emailed but they have recently risen again.

We appreciate that many of our customers are particularly concerned about the rising cost of fuel and we’re working hard to offset this through competitive local pricing, ensuring we offer our customers a fair price wherever they live. We also run frequent fuel promotions, which include 5p off per litre when you spend £50 in our store, and triple Nectar points per litre instead of the usual one point.

I’m grateful to you for contacting me and I hope I’ve reassured you of our commitment to fair pricing.

Yours sincerely

Justin King
Chief Executive

-----------------------

Hello again

Thank you for your reply a few weeks ago.

Since your last response, oil prices have remained roughly at the level at when I first contacted you. Also, the past few weeks and days have seen a further significant drop in the cost of oil, while the exchange rates have also remained relatively steady. So my question again is why is it that now oil is roughly $23-$25 lower than a couple  of months ago, these lower commodity prices are not reflected at the pumps?

I have contacted you again because you have been the only major supermarket to bother to respond to me, so I have more confidence that you will respond to this email.

I again repeat my sentiment that supermarkets are quick to raise their prices when oil shoots up, but are incredibly slow when prices fall. Over the past 6 weeks I have seen only 1p per litre come off the price of petrol, yet the lower cost in oil should have meant a more significant reduction. The public can't help but feel that the petrol retailers and supermarkets operate in a cartel, looking to make as much profit as possible out of a tough situation.

I urge you to take action and rectify the situation. The public are more aware than ever how the oil price relates to the petrol price.

I look forward to hearing from you soon.

Regards

Who thinks I'll get another reply?

Fuel Prices On The Rise Again

The start of the week saw Scottish Power announce that it was raising it's gas prices by a staggering 19% and electricity by a further 10% by August this year. It begs the question; why are we paying so much for gas when there is so much of it around? It's not in the same position as oil where supply will outstrip demand in a few years time.


With Scottish Power raising their prices, other power companies are expected to do the same soon. What this means is yet more pressure on households to make ends meet in a time when wages have stopped rising and high living costs are crippling family budgets. This is going further suppress people's spending power, which is the last thing businesses need. 


People tell me that I'm always banging the downbeat drum, and I'm afraid I'm going to bang that same drum now. 


While wages are stagnant, and living costs are sky rocketing, people simply are not going to spend. And with gas and electricity prices also shooting up, this is making the current situation ever more difficult to turn around.


I also think that the government should be looking into how these power companies come up with their prices, because from here it looks to me like they're all in a cartel and profiteering from the current hardships.

Ethics Test

For those who take an interest in this sort of thing, you will know that oil has dropped from $126 per barrel to $109 at close of play last night. This is one of the sharpest drops seen in recent months.


I recently watched an interview on the BBC where the expert being asked the questions explained that for very $2 oil goes up, the petrol at our pumps rises by 1p. So by that logic, with oil now at $110 per barrel, $16 has been shed, which means in about a months time (which is how long it takes for oil bought at today's prices to filter through to market) petrol should have come down at least 8p! Bringing the cost of petrol here in Wakefield down to £126.9. Yes it's still expensive, but 8p off a litre would be extremely useful right now.


So, listen up BP, Shell, Esso, Gulf, Jet, Morrisons, Asda, Sainsbury's, Tesco and any other business that sells petrol and diesel. Show us all that you do truly care for your customers and lower prices according to this drop in oil prices as soon as is possible. You're all very quick to slap on rises the minute oil goes up (not allowing for that 4 week period for prices to naturally filter through), but we all know how SLOW you all are to bring your prices down.


To all my readers, while in the office on Saturday, I'm going to email this post to every company mentioned above to ask them to take the time to read what is above, and to see if any of them will bother to reply and assure us that these lower oil prices will reflect in lower petrol costs, even if they only last a few days before prices go back up again.

Are Reduced Margins A Certainty?

A bit of a debate started yesterday on Glasstalk about margins and how they will naturally become less due to the mature market place, competition and struggling economy. As proof of the opposite, I'm taking the view that just because things aren't so easy, there are ways to stay profitable.

One way to increase margins is to improve the quality of the product that is sold. High-end products can command a better profit margin. It's easier to sell a higher price to a customer when the product is a good one. Cheaper products can only achieve medium price ranges with poor profit margins.


The other way is to accept the financial situation we are all in. Loss leading offers are not the  way to bring the custom in when profit is needed so badly. It's time to implement those price increases that your manufacturers have been passing on and eating into your profit levels. Just because the price of a door might go up £30-50 doesn't mean you won't get that sale now. Just sell the benefits of the product and explain that raw materials prices have gone up. The last few leads I've sat I've explained how the current financial climate has caused raw material prices to go up, having a knock-on effect on our prices. They're are fully understanding as they know everyone, including themselves are having to pay more due to the rising cost of living.


Get your staff to do more. If you're busy and think you need to hire more staff, try using your current employees first before you add another wage to your bill. Perhaps give them a small pay rise to cover the extra work, but this will still be cheaper than taking on another member of staff when maybe you don't need to.


Increase your levels of personal service. You can command higher prices if the customer thinks you're doing more for them than the other company is willing to do. The more work they see you doing, the more justified the higher price becomes.


We don't have to be scared of higher prices. If we can embrace it in the right way, adapt to a more expensive market and communicate that well to the customer, there's no reason why companies can't start to recover their profit margins.

Polymer Prices Set To Rise Further

Due to the recent Japanese Earthquake, Toray Fine Chemicals Company Ltd, producer of polysulphide polymer, has had to cease production for an unspecified period of time.

The plant was damaged in the recent earthquake, and due to damage to most of Japan's nuclear reactors, power to everywhere north of Tokyo has had to be rationed to stop areas of the country going into blackouts.

The problem is that over 30% of Western Europe's polysulphide polymer is made by Toray. Moreover, the other polymer producers are already working at full capacity, therefore they won't be able to take up the slack and make up for Toray's lack of prodcution.

Because of this, polymer prices look set to rise further. This comes after recent increases in the cost of PVCu.

Also, the PIB based sealants used in the production of IG units has been disrupted by the disaster in Japan. Again, prices are set to increase, and glass producers are being warned not to enter into any long term agreements.

Now's The Time To Start Recycling

If you haven't already heard, skip costs are set to jump a further 20% from Friday 1st April. Unfortunately this is not an April fools joke!


The costs are rising because of annually increasing rates on landfill tax, and will continue to rise until 2014. The theory behind the rises is to try to wean the British population off just throwing everything away, and to try to get everyone recycling as much as they can.


So, if you're still putting your post consumer waste in the skip, instead of having it recycled, now is the time to start! Our skip costs have significantly reduced as we have all our PVCu, timber and aluminium frames recycled. These materials used to be the biggest contributors to using up skip space, but now they are being put to better uses.

A Crescendo Is Building

Over the past few weeks, I can't help but feel that there is a crescendo building within the double glazing world. One specifically relating to price.


Gathering from what people within the industry have said an information from customers, companies now seem to be crippling under price increases, and are now in the process of raising them. This had to happen. There were too many increases for installers to take on the chin. Despite this, Kommerling have come out and said that their prices are going up 9%, owing to the rising cost of oil. Also Pilkington are pumping up their prices across the range, between 10 and 25%. These new increases also have to be passed on, especially now as profit is becoming harder to make these days.


But it's not only Kommerling and Pilkington raising their prices. Pretty much all systems companies and glass suppliers have had to increase their prices to manufacturers. It's only now that installers seem to be passing on the increases. The crazy thing about it is that this should have been done ages ago! Just think of all the profit lost unnecessarily! Of course you'll still come across the companies who still think it's a good idea to under-cut in this sort of market, but all being well these companies will go bust!


I can feel all this boiling over now within the industry. Prices have risen, installers and manufacturers have held off the rising waters as long as possible, now cracks are beginning to show and companies are having to take on these increases quicker, and more often.

Service With A Smile

Service is one of the most important features between an installer and their customers. Without good service a business simply wouldn't survive. But what about the service between installers and their suppliers?


Ask any installer if they're totally happy with the service they get from their suppliers and if they are honest, most will say no. There are major communication problems, quality controls issues, lack of cooperation and stagnation. And in the face of these issues, nearly every single one has raised prices, or are due to in the next couple of months! The cheek!


When a supplier gets it wrong, the impact is felt all the way down the supply chain to the customer. If units fail, if frames are scratched or if parts stop working, it's not they who take the angry phone calls or disappointment from customers, it's us installers that have to take it on the chin. Then have to nicely speak to our manufacturers to replace the parts under the conditions of the guarantee. You can't get angry with your suppliers, it could spoil the working relationship.


Ever felt you're being ignored? Suppliers don't talk enough to their installers. Whether it be by email, phone calls or personal visits, installers like to think they are thought of regularly by those who they give thousands and thousands of pounds to every month.


If systems companies and manufacturers are going to implement price increases, installers have to see something for the extra money. Improve service, improve product quality and improve communication. And do it with a smile!

Shortage Of Cash

Figures out today have shown that CPI inflation has risen from 3.7% to 4%, and RPI inflation has risen to 5.1% from 4.7%.


The rising cost of living versus stagnant wage increases means that people have got less cash to spend, especially so on new windows, doors, conservatories or orangeries.


This squeeze on spare cash is really hitting people's spending confidence. Wherever you go and whoever you speak to in business, they will all tell you one thing, people are hesitant. They are scared of spending money. All this leads to the very serious problem of reduced cash flow. No cash flow equals no bills being paid which equals winding up orders.


Consumer confidence is the most valuable asset at the moment. We need inflation to come down so the public will feel better about spending their cash.


Looking forward, I see very uncertain and tumultuous times for everybody.

How Much Should The Average Door Be Sold For?

The issue of pricing has become a hot topic in recent weeks, with many saying that we sell our goods and services too cheaply. I've said in a previous post that a good quality 3x3 Victorian conservatory should be selling for around the £10K mark. But this is a big ticket item which isn't selling in the bucket loads. So I thought I'd gauge opinion on what people think a door should be sold for this year. So I've added a poll!


My personal opinion is that a standard white composite door should be coming in the £800-£1000 mark. If the door is sold with fancy glass and additional features then we should all be able to sell doors for over £1000. After all, companies have worked tirelessly to improve security and quality on doors, why can't we command a better selling price?


Comments and thoughts appreciated.

Selling At The Right Price

In a time where it's imperative for double glazing companies to be selling their products at the right price, the industry is still plagued with companies who are too price focused and hence go bust a phoenix time and time again. 

How do we educate both the public and financially un-sound businesses out there that for a great product, you have to make the right margins and the customer has to pay the right price for it too. Robert Foy has made the point that the smallest installation companies and one man bands should also be charging the same as bigger companies do. Just because they may not have the overheads they do, doesn't mean they shouldn't be able to charge the same. People and in business to make money, that's what they should be doing.

Changing a pricing culture that seems to have been in the industry since it was born is going to be difficult. It may be one of those things where if people keep the issue on the table and as a point of discussion, attitudes may change as the idea of charging a bit more for products starts to bed in. What we could also do with is the bigger companies in this game, like the manufacturers, talking in the same manner. After all, they are the ones raising the prices to start with!

A 3x3 Victorian conservatory for example, should be selling at around the £9-10K mark. For that manufacturers can get a fair price for their glass, roof and frames. The builder and fitters get a decent wage, the company should be making the right amount of profit (bearing in mind they will have to guarantee it for ten years) and the customer is paying the going rate for a conservatory sold in 2011.

I really would like to know if I'm on the right tracks with that, or if some of you think that is too much, or not enough. Either way, our wares are being sold too cheap at the minute and something has to change.

Kommerling Raise Prices

As of 1st January Kommerling will be raising their sealants and adhesives prices by a whopping 20%. They say that by raising their prices it will ensure 'continuity of supply' and will be able to maintain 'it's levels and quality of service'.


They are blaming this price hike on the rising cost of polymers, carbon blacks, resins and plasticisers. This is something which I talked about in an earlier post. The rising costs of raw materials mean't that there had to be some form of increase on the horizon. A rise of 20% however is quite a large one, and I suspect that Kommerling have taken the last few rises on the chin but are unable to keep on doing so, and quite right too.


This is probably going to be one of many increases announced before the end of the year, and we're likely to see many more in the New Year.


A full report can be found at: http://ggpmag.com/newsitem.asp?newsID=735

Big Price Increases Nigh

The start of the New Year is always a tough period for double glazing companies. Leads are slow, as are sales. Wages still have to be paid, bills and overheads still have to be paid. As much money goes out as it goes in for some. The last thing then the industry needs is price increases.


Unfortunately this is what looks set to happen. The price of oil has shot up in recent weeks, causing the cost of petrol and diesel to rise to near record highs. Not good news for manufacturers as their transport costs are already high enough. A high oil price also means a higher polymer price, affecting the overall cost of the PVCu we use. 


Glass prices have risen steeply this year, and I see no reason why they won't carry on rising throughout next year. The recent Planitherm shortage may have a hand in it. There is speculation the shortage was deliberate, giving manufacturers a platform in which they could raise their prices if they wanted to. But that is speculation of course!


Polycarbonate prices also look set to rise. With transport costs going up as well as raw material costs rising too, polycarbonate roof sheets are set to become more costly yet.


And then we all know about the new 20% VAT as of January 4th. All this wouldn't be so bad. But the Government's spending cuts are due to kick in this month. People are going to find out if they are losing their job or not, spending will fall compared to this year and economic growth is due to slow next year according to experts. 


Early 2011 could be quite a tough trading period for the double glazing industry.

Who's Put Their Prices Up?

Putting prices up is a decision companies don't take lightly. With every price rise, the likelihood of winning more orders diminishes, or is at least made harder. 


The industry has been creaking all year from the pressure of price rises. PVCu polymer prices have gone up, polycarbonate prices have gone up 3/4 times already this year, as has glass and panel costs. The question posed then is: what to do? 


Companies can do one of two things, absorb it and let it eat into their profit margin, or pass it on to the customer. If it was up to me, I would be passing all price increases on. Absorbing costs and lowering margin is just plain risky, and it doesn't make good businesses sense. Profit margins are there for a reason. Businesses and people aren't in business for the good of their health, they are there to make money - so pass the prices on.


People are always going to need windows and doors. That's a fact. I also understand why companies absorb costs. They are worried that if they increase prices they will lose business to their competitors who haven't increased theirs, letting it dwindle away their profits. I say just sell your products well. A price, if it's higher, can always be justified if there is good reason, that's why we're salesmen. 


So it's time we all started running our businesses properly, tell the buying public that we live in a world of higher costs now, and start selling our products at the right price!

The End Of Low Low Prices!

On the way home yesterday I was listening to an interview on Radio 5 Live. As far as I could tell the interviewee was some form of economist or business expert (I joined the program half way through so I missed the introductions!). What he was explaining was that over the past 18 months freight, and the costs of freight, in all sectors varying from food to clothes to all sorts of good, has risen quite sharply.

Now as these prices have been going up, manufacturers have been squeezing as much as they can out of their suppliers to try and off-set the rises in transport of goods. But, as the business expert was explaining, this has now reached saturation point, and businesses are going to now have to make the choice of either starting to let it eat into their profit margins further, as they have already been doing. Or, to pass the costs increases onto the consumer, and hope that their customers will appreciate their quality of goods and understand why they have had to raise their prices.

This situation is also going to be exacerbated twice in the coming months. Firstly because of the upcoming spending review. If people's buying confidence suddenly starts to wain, then sales of all goods are going to suffer. Then a second squeeze is going to come in the form of the VAT rise to 20% in January. Now we in the window industry are all quite sure that this shouldn't make much of a difference to the buying public, but the business boffin being interviewed seemed concerned that with retail prices going up, spending being cut back and VAT on the rise all combining, perhaps we need to be worrying just a little.

So, it's time for Primark to stop selling T-shirts at £2 as we all know it's not sustainable. Pasties from Greggs may go up to a £1. And from a window industry point of view, companies need to stop selling windows so cheaply and start to rebuild their margins again!

Gone are the days of genuine 'low low prices!'

Price Increases For Some, Not All

One of the big topics in the industry at the moment is the need for price increases. Systems companies and manufacturers have been hit hard by rising materials costs, over-competition and market saturation.

What usually happens is installers take it on the chin and allow it to eat into their profit margin. But what happens if the installation company wasn't selling at the right margin in the first place? As a company we've always been a bit more expensive than others in our area, we believe we've been selling our products at the right price, even if they are more than others. This means that where others have had to increase their prices, we've haven't. We try to make good solid margins, and this allows to absorb certain increases in the future.

Those companies that have been undercutting to try to win business most of the time, will have to raise their prices in order to keep paying their bills. Those that were selling windows and doors at the right price in the first place should find price increases easier to absorb, and not to pass them on.

Under-Pricing Is Here To Stay

Recently, many of us have been talking about the prices we sell our products at and how they should be at least about 20% more than what they are now. Well, as I see it, prices won't be able to go up much due to pressure from the consumer. As the country prepares itself to go into even tougher times, the pressure to get anything at rock bottom prices will be even greater, with customer playing companies off one another to get cheaper prices. This tactic will make raising prices even more difficult. Most companies will still continue to take increases on the chin, despite that eating into their already dwindling profit margin.

The problem here is that the consumer still thinks that this is a 'buyers market', when in fact it is a market creaking under the pressure of rapidly rising prices, and a market that desperately needs to raise their selling prices to survive.

The window industry is a short minded one. Three quarters of all companies will still result to under-cutting in order to win the business, even if this does mean making little to no profit in the job. That sort of practise has only one end result, and that's bankruptcy. The smart company would increase their prices slightly, yes they might lose the odd order, but the increased margins on the others they do win will off-set that, and help secure their financial security short-term.