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.

Making A Stand

There are a lot of 'yes men' in our line of work. Those who say yes to things, but have no intention of following through on their promises.


Take FENSA for example. It was alerted to them that there was a company selling their certificates for £80 a piece. It was totally against their ethical code and when they spoke to me about it they said they would investigate, find the company and rectify the issue. So far I have heard absolutely nothing! Selling these certificates for such a large amount of money really does abuse the trust and faith of the customer in that company. Hence it was an issue I felt strongly about.


Then there is the GGF. The Green Deal is being threatened to be swallowed up by massive UK chains entering the double glazing industry for the first time, Tesco and Homebase for example. Weeks and weeks ago they promised that every company, no matter how big or small they were, would be able to have good access to the benefits the new scheme would bring. They said they had plans either in place, or being developed to make sure the boost would be shared equally. Again, so far, other than a debate about the scheme, I've heard absolutely nothing, despite the GGF assuring me they would be working hard to make sure we would all see a benefit.


So, FENSA and GGF. What are you going to do about it? This is a challenge to both of you. Either email me, or come on here and show how you are going to sort out the issues I've mentioned above. I won't let this drop and I won't let this go away. Both are important issues in my opinion and both deserve a speedy resolution.

Homebase Windows!

Here's the 'I told you so' moment!

As well as Tesco launching their own double glazing company, Homebase have now decided to enter the fray and have also launched their own double glazing service.

Having a very quick look through their online brochure, it looks relatively well set out, clear - easily explaining the order in which a customer can go about ordering their new windows. They make it clear which products are what and the brochure itself has a fresh and modern look to it. I was also particularly impressed with the price on the very back page. They quote £2900 including VAT for four casement windows and an entrance door. This to me is what four windows and a door should be being priced at, given the economic conditions right now.

So, both Homebase and Tesco look to be similarly priced, both with slick and professional sites (though Tesco's is more in-depth, but given time I'm sure Homebase will expand their site also), so look set to go head to head once the Green Deal is implemented in just eleven months time.

If you're involved in any way with these two giants of the commercial world, this is probably good news, especially if you're the companies supplying the windows and doors to them. However if you're one of the 14,000+ specialist double glazing companies in the UK hoping to get a slice of the Green Deal pie when it's put in place, it's probably just become a little harder to make the most of it. The whole reason why these companies, which have never ever sold windows before until now, are now selling them know that once the Green Deal starts, there's probably going to be a pretty sizable boost coming to the double glazing industry and they want to make the most of it. Problem is, most of us will most likely be shoved out of the way in the mean time.

Message to the GGF: don't let the commercial juggernauts swallow up what could be a potential big boost for the genuine double glazing community.

Homebase, according to their website, claim to be FENSA accredited installers. Though it's more than likely that they will be using a home improvements company, like Tesco use AJWD, to install the windows on their behalf.

As I get to know more details about this I will post them on here! 

Tesco Windows Website Back Up And Running

Yesterday the Tesco Windows website came back online, dispelling any myths that the company was maybe having second thoughts on entering the industry.


But, for such a massive company to have a website down for 5 days is a poor show, considering the money and the I.T. skills behind the company.


At first glance nothing seems to have changed. The layouts are the same, as are the images and the prices advertised prior to the site going down. So I guess we just have to put this down to 'technical difficulties'. Or maybe it was LulzSec flexing their muscles again!

No More Tesco Windows?

For the past few days the Tesco Windows website has been down. Is this just a technical problem, or does this mean something more substantial?


During it's very early stages the website had a conservatory section, which was then later removed. No explanation as to why, but maybe they started to realise how much work really goes into building a conservatory, and the paperwork that goes with it.


But the website has now been down since last Thursday. Are they making changes or are they completely re-thinking their strategy in this industry?


In an earlier post I had written an open letter to them and sent them a copy via their email address, but as of yet I have heard absolutely nothing from them. That was their opportunity to answer some the of questions that were being asked. 


Would it be a bad thing if they weren't here though? The poll I've got going at the moment is showing that no one really knows what to think of them. 

My Questions To Tesco Windows

As with anything new, questions are asked. And with Tesco Windows, this is exactly the same. So I took it upon myself to pose some questions to Tesco Windows to see if they would reply and shed some more light about their plans - and to test how honest they really would be.



Hello


I'd like to introduce myself as Double Glazing Blogger. I'm an anonymous blogger within the double glazing industry.


The introduction of Tesco Windows has certainly made the rest of the industry sit up and take notice. In fact it's the only thing most of us have talked about on the Twittersphere and blogging arena over the past couple of days.


As you would expect with anything new, people will ask questions - just as I am about to do, as a blogger, not a competitor.


I've had a look at your website and it certainly extensive. You've given as much information as possible on the areas of work your are going to cover, which is vital as clarity in this industry is very important when you're dealing with demanding customers. You also clearly state prices - again good as it shows the customer exactly how you're positioned in the market. But some of the things written on your site aren't so agreeable. You give the impression that the mass majority of the industry is made up of companies using hard-sell tactics and ridiculous discount structures to gain business. Well I can tell you that the industry is also full of professional, ethical and fair companies who only seek to do the best job possible for the right price. So to portray the industry in such a manner as you have I'm afraid is false. Don't get me wrong, there are companies out there exactly how you describe, but certainly not all, and certainly do not make up the majority of the industry.


You also state no salesmen. So who does the job of asking what the customer wants, finalising their specifications and working them out a price? Is this all done by a surveyor? You also seem to cast a dark light on salesmen, of which I am one, and like to think I'm not like the stereotypical ones everyone imagines.


You say you have teamed up with Weatherseal and A Job Worth Doing. Are Weatherseal going to be supplying the products? And if so, will they be using the Spectus profile system, seen as though they supply Weatherseal?


What I'd also like to know is whether A Job Worth Doing will be carrying out the work or will it be Tesco. If so, are A Job Worth Doing just using the Tesco brand name to boost their business? Is this just A Job Worth Doing dressed in Tesco clothing?


A few of my readers also have questions they would like to ask.


1. Which roof are you using and who are you buying them from? 


2. Which supplier are you using for your window and door hardware?


3. Are you going to go into the conservatory/orangery market.


I would like to say well done on some realistic pricing. One thing this industry does have a lot of trouble with is under-pricing. A lot of companies at the moment are selling their wares too cheap, however the prices you're advertising I think are about where they should be right now.


Right now the industry is curious more than anything, people (lots of people) will have their opinions on this as I'm certain you will find out very shortly, if not already.


I would be grateful if you would take a few minutes to read what is above and give your feedback. I as a blogger would appreciate, as would those who visit my site.


I look forward to hearing from you.


Kind Regards
Double Glazing Blogger


I will obviously post any response I get from Tesco Windows.

Tesco Windows: Good Or Bad For The Industry?

Everyone is talking about it, so there may as well be a poll gauging whether we all think the introduction of Tesco into the home improvements sector will be a good or bad thing for the industry.


Personally, I'm thinking it could potentially be bad for business. If a giant such as Tesco manages to make a good go of it, and word spreads through to the general public, then this will make trading conditions even tougher.


They are probably going to have an enormous impact though. The company itself makes more profit in a year than what the whole industry is worth in total. They actually generate around £1 billion in sales per week. They are looking to roll their services out nationally, creating a network of approved partners. 


Some businesses may turn their noses up at this. But when you consider the size of the Tesco brand, it's reach to so many customers, the amount of leads a business could receive could be enormous.


Many will probably feel uncomfortable going down that road. There are many well established businesses in our sector that will be unwilling to be sucked into the Tesco business Juggernaut, fearful that their name would be lost in their local area. Pride takes a big stand in business. 


I can see why Tesco have moved into the market. The Government are about to launch their 'Green Deal', and want to be there when the influx of new business arrives. However this is going to put the rest of us at a possible disadvantage, in an already saturated and over-competitive market. The coming months will tell us all we need to know.


This I'm sure will have a big impact on our industry, so whether you think this is good or bad, please vote.


UPDATE: blogger seems to be struggling with all types of polls at the moment. So apologies if your vote hasn't appeared. I am looking to find a solution. In the meantime, I have put the original post back up. While I'm out seeing customers for the next little while, please try voting again to see if the manage to be counted.


UPDATE 2: I've now taken the embedded poll off from the right hand side - it just wasn't working. So, I've given this subject it's own page: Tesco Windows - Poll. You'll find it on the right hand side in the pages section, or just click here.

Tesco Windows

Maybe it was just a matter of time, but now one of the biggest supermarkets has moved into the double glazing market with the introduction from Tesco of their own range of windows, doors and conservatories.


And at first glance they look to have entered the market with a decent set up. They have a pretty comprehensive website, not bogged by down by 'offers' or 'sales'. It's not too flash heavy either.


Each page sets out in quite some thorough detail their different products, all the available options that come with it and what the customer can expect to get for their money, which when they look at the lists they've compiled looks substantial. They're are also clear on what you get in the standard price guide and what is optional and would be added to the cost - something which could have easily been overlooked but has been well explained.


What I'm also impressed with are the prices they've entered the market at. £554 for a top and side hung window shows that they are aiming at the higher end of the market. What this will help to do, because Tesco is such a massive household name, is to build up the impression to customers that these are the right prices to be paying for these products. OK, they may become half-serious competition if this takes off in a big way, but I also think it will push out some of the dead wood companies and cowboy OMB's that plague our industry. Tesco's marketing Juggernaut and commercial power could be a good thing for our industry.


One huge stumbling block they need to make sure they can get over is the after-sales care. They need to be ready for the numerous remedial calls, professional non-payers, the ultra pedantic consumers and those who think they know more than you despite you selling the product. Customers can be the biggest problem in this industry, but as long as they handle them well, professionally and courteously then I think they could make a good go of this.


I have one question however. Do they no something we don't? It's quite unusual for a British supermarket to move into something like this. Could they be anticipating energy efficient windows being included in the new green energy bill set to be announced by the Government? If they are, they may be positioning themselves to cash in on some potentially substantial home improvement work.


This is one to watch I think.