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EXCLUSIVE
Anger over second BSH price rise
BSH HAS issued its second price rise in a year despite ongoing supply problems.
A letter to dealers, gave advance notice of a price increase for its freestanding and built-in ranges of Neff, Bosch and Siemens appliances on orders from September 1. The letter does not detail exactly what the rise will be, but some retailers are claiming to have information that points to around 10% to 12%, although this has not been verified. The implementation of the last price rise, announced in a letter to dealers on February 28, occurred on June 1. It is believed this rise was around 5%, but this has not been verified by BSH. The most recent letter, signed by Simon Jones, director of the Kitchen Division and chief financial officer Jochem Ybema, said: “Unfortunately, since issuing notification of that increase in February, we have experienced substantial additional cost pressures that we are unable to absorb.” While BSH – which declined to comment on the issue – is by no means the only manufacturer increasing prices, there’s no question that
the company is seen as an
industry bellwether and its ongoing problems with supply, availability and communication means the price
increase is seen, by some of its dealers, as a worrying move. “The fact they’ve increased prices isn’t what bothers me because everything is going up,” one dealer told kbbreview. “What bothers me is that they’re increasing prices while being a complete shambles. There’s zero communication. Other suppliers are sending emails, making phone calls, explaining the situation and giving actual dates however far in the future they may be. BSH are giving us nothing.”
Another retailer confirmed that communication is the issue: “It’s not the message, it’s the delivery. It’s infuriating to think that they want to sell direct to the consumer when they have absolutely zero customer service skills to us retailers. It’s like they’ve just stopped trying.”
BSH rations products to tackle shortages “I think this is good for us,” one retailer told
Kbbreview has learnt that BSH is severely limiting the products available to kitchen studios as it continues to battle the crippling supply issues hammering the industry Independent retailers will only have access to some higher specification Siemens and Neff single/45cm compact ovens such as the N70 and N90 series for Neff and some IQ500 and IQ700 for Siemens. In a letter to dealers, GB and Ireland CEO Gunjan Srivastava said that the company had seen “indicative production volumes” of all compact ovens through to the end of 2022, and this has led to these difficult decisions. Orders placed before April 1, which are already sold to a consumer, are being prioritised from that production and, once these are fulfilled, there will be “insufficient volume remaining to meet the demand for single/45cm compact ovens”. “It is therefore necessary to adopt more stringent rationalisation measures to manage the shortages, by limiting the number of models that each of our trade partners has access to,” Srivastava said.
It is believed that different channels, such as contract or online, are being restricted to certain other product ranges too. The news has received a mixed reaction from retailers.
August 2022 ·
kbbreview. “They’ve got to do something, and this seems like a very sensible option to try and get through the backlog.” “It won’t have a huge impact on us. We sell
very few of the models that we now can’t have access to,” another said. “BSH can only do so much if they can’t get the components.” Other dealers were less pleased, seeing this as BSH dictating what they can and can’t sell.
“Essentially, independents will not be able to sell any of the most affordable oven and micro combis,” one said. “This will make independents seem dearer at a time when consumers are tightening their purse strings. In my mind, this is an extension of a long-standing strategy to try and pigeon-hole independents and restrict them to higher-value products only. How long before this policy is extended to other product lines?” BSH is not, of course, the only supplier suffering from supply issues. Kbbreview believes that AEG is limiting its product ranges – although it’s understood that there are no plans to ration between channels, while Samsung acknowledges the issues but says it’s not seeing major disruption to availability.
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