NEWS | Round-up
VIEWPOINT
Would you like fries with that?
Roy Saunders, CEO of TKC, shares his top tips on how retailers can make sure they maximise margins
‘IS THERE anything else I can get you today?’ or variations thereof has become a standard question trotted out by every barista in every coffee shop across the UK it seems. All designed, I am sure, to try to squeeze an extra bit of cash out of you before they close the sale.
If I wanted something else, I would have asked for it
already, is a response they don’t seem to understand, since it’s not on the crib sheet of answers they have been trained to expect.
This is aimed, of course, at ‘increasing the share of the wallet’ through the tried-and-tested techniques of cross-selling and up-selling. And this is a great way for retailers to increase their bottom line, provided, of course, it’s done in a considered and appropriate way that offers real benefi t to the consumer. From cutlery trays to lighting, wirework, hot taps and waste disposal units, there’s always something we should be trying to add on to the sale. Of course, the easiest way to increase margin is to take costs out of the business, but one thing that experience has taught me is to set standards that you can maintain fi nancially and that refl ect your business and brand at every customer touch-point.
The easiest way to increase margin is to take costs out of the business
I once went on a factory visit –
hugely impressive and with high investment in automation. The team were all very impressed until the marketing freebies they gave us disintegrated after a day. Perhaps the product isn’t so good after all, we thought, as we headed
disappointedly back to the airport. Details matter. I’m a fi rm believer that margin improvement comes about in hidden, hard-to-quantify ways rather than fi nding a silver bullet, but my favourite is probably the ‘cost of failure’. Do you understand it and what it costs your business?
At TKC, if we get a product wrong at any stage, it’s us, as you would expect, who bear the extra product and delivery cost, and our objective is to maintain customer confi dence and future business. I’ve spoken to many retailers over the past year, who have told me about poor service from suppliers, and this has got to be costing them time, reputation and the opportunity cost that’s missed doing remedial work rather than being on the next job. Nor is it good for payments and cash fl ow. Supplier housekeeping recommended. Lastly, I’ve always been an advocate of maximising your buying power. Having 10 accounts open, but only spending with a few, is unlikely to get you their best terms or best service and support. We’re always happy to consider volume-based rebates where both parties gain from this loyalty.
GERMAN KITCHEN manufacturer Warendorf has been rescued by a Chinese investor after the company was put into administration in March. The company will trade under the new name Warendorf Küchenfabrik GmbH and will be led by managing director Stefan Hofemeier with representatives of the Chinese investor. The company, which has been bought for an unspecifi ed sum, was handed over to the Asian investor by the insolvency administrator Stefan Meyer of Pluta after the investor had fulfi lled all conditions of the purchase agreement.
Administrator Stefan Meyer said: “The negotiations with the works council and [German workers union] IG Metall have always been constructive and target-oriented, even though the positions of employee representatives and the investor have naturally been different. The agreements now concluded (restructuring collective agreement and works agreement) are therefore a very pleasing conclusion to the investor process.
“I would like to expressly thank the representatives of the works council and IG Metall for their far-sighted and responsible conduct of negotiations, which ultimately made the solution possible and thus secured the vast majority of the jobs affected.
“I wish the successor company and its employees all the best for the future and, in particular, sustained economic success.”
The formal conclusion of the restructuring agreement and a works agreement have been agreed for the effective takeover. Both requirements of the transfer agreement, which were still outstanding at the time, have been fulfi lled and all necessary demarcation work and inventories have been carried out.
Grohe names Andersen as its new general manager for UK
GLOBAL BATHROOM brand Grohe has announced the appointment of Simon Andersen as its new general manager for the UK, effective from September 1. Andersen (pictured) replaces Ina Sielemann
in this role as she moves to Grohe’s German headquarters to become head of projects for central Europe. Jonas Brennwald, deputy chief executive
of Grohe in Germany and chief executive of Lixil Water Technology, EMENA – himself only recently appointed to that role during the raft of management changes in the wake of the resignation of former CEO Michael Rauterkus earlier this month – said of the appointment: “I am very pleased to announce Simon Andersen as the new general manager of Grohe UK.” He added: “Simon has been working for
Grohe for over 10 years and has shown great leadership lately as marketing director for north and east Europe. With his strong background at
Grohe, we are 6 confi dent that Simon Andersen will continue to drive the business kbbreview · September 2019
for Grohe UK successfully.” Andersen said
of his new role at the
company: “I am thrilled to be taking on this new challenge of heading up the UK region. The UK continues to be an infl uential, ever- growing market for Grohe. I look forward to working with my new colleagues, partners and customers to help further strengthen the success of the business.”
Warendorf saved by Chinese investor
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