FEATURE: SUPPLY CHAIN & LOGISTICS


removed to access the containers at the bottom, which would originally have been the last stop, but now is one of the first. And then they have to be reloaded before the onward journey. More delay, more cost. This logistical nightmare is not solved overnight and, if anything, is likely to get worse in the short term. So, the price increases we are seeing now I sadly believe is just the tip of the iceberg.


Don’t get caught out When it comes to garden machinery pricing, retailers are very much focussed on container costs, waiting for them to come down in the belief that product prices will do likewise and they can drop prices. But there’s a big gap in this logic. Suppliers, like ourselves, have purchased stock at a set price, have incurred those extra shipping costs, and have a high inventory of that stock. Selling that stock off at a loss as is detrimental to their business and, in some cases, could mean financial ruin. We’ve actually been here before. In March 2021, the Ever Given container ship ran aground in the Suez Canal, blocking it for over


three months. It held up as much as $10 billion of cargo a day from moving and sent shipping costs soaring, which was reflected in the supply chain. By the time goods, including garden machinery, were landed in the UK, inventory cost was very high, which was reflected in the retail price. Understandably, customers didn’t want to buy at that high price. And so, suppliers and retailers were sat on really high inventory levels and forced to sell goods off at a loss to try and clear down their inventory. Whilst this was happening, of course, the cost of shipping was coming down, but without clearing their inventory, they couldn’t take advantage of this for the next season. Garden machinery suppliers are still trying to bounce back from the Ever Given debacle, and the impact of Covid, so now to add the Houthi attacks into the mix means many companies are treading a very thin line as to whether they make a profit or, if they make a loss, how long they can sustain it. As we have seen, there seems no immediate end in sight to the attacks in Red Sea and no business thrives on uncertainty. The reality is that even if the attacks stop,


and container prices come down, product prices won’t be dropping any time soon.


Addressing the issues There’s not a straightforward, easy fix for this situation. However, there are things that can be done by suppliers, such as ourselves, to build greater resilience into the supply chain, create greater flexibility, and support the retailer. Firstly, suppliers need to buy at the right time, at the right price and put more stock on the ground. This reduces the risk from the fluctuating issues in the market. It does mean that suppliers need extensive warehouse capacity. At Handy, we have extended our warehouse twice in recent years, and are already working on a third major extension. Secondly, and more immediately, suppliers need to look at pricing. Simply dropping prices and making a loss isn’t commercially astute for any supplier, no matter how much a retailer might push. In fact, if anything, prices will actually increase, as I’ve outlined above. Our approach has therefore been to set a price and then drop prices through promotional activity instead. The reality is, we can only determine our true cost once the


goods have landed and are in our warehouse. If we have managed to improve margins on those products, we will pass this saving on to the retailer through promotional activity. For example, in February retailers can buy our Webb 161cc 36cm (14”) Petrol Tiller at £279.99, rather than the set price of £319.99 and maintain regular margins through the dealer offer in February. We will be providing monthly offers throughout the buying season, each reflecting the changing circumstances. It’s a flexible approach and one that works for all parties. We make a profit, the retailer can create excitement over specific products and drive sales, and the consumer benefits from a good deal. With the cost of living crisis having a genuine impact in this sector (we’re finding people downsizing on product, suggesting they have a set amount to spend and no more), price matters more than ever before. Since the company’s creation in 1938, Handy has grown to become one of the UK’s largest independent garden machinery wholesale distributors and manufacturer, supplying specialist dealers, large national retailers, garden centres and mail order companies. Visit www. handys.co.uk for more details.


ADVERTORIAL FEATURE: PEST CONTROL


FIND OUT WHAT’S HOT IN PEST CONTROL


I


t’s more than 12 months since STV unveiled their new showroom, since when they’ve welcomed literally


hundreds of customers. The STV team is continually looking for ways to make the resource work harder for visitors and their latest development is proving to be extremely popular.


Amongst the new products,


merchandising and display ideas for all types of DIY pest control, their new ‘featured product’ displays are helping visitors focus in on what’s hot and in high demand right now.


“Our objective for the showroom is to make it easy for customers to select products and ranges that will


www.diyweek.net


allow them to exploit every last sales opportunity, say STV. “Inevitably, in a category that fluctuates with the season and the weather, added to our continual innovation programme and ever- changing promotional campaigns, it’s not always easy for retailers to be on top of every opportunity. Now, thanks to our ‘featured product’ displays, visitors will be in no doubt about the latest’ hot products.” Right now, the featured products spotlight is firmly on STVs latest innovation in pest control kits. Each kit provides an integrated selection of control products designed to work together to give consumers 100 per cent guaranteed results every time. There’s a range of control kits targeted at household pests like carpet beetle, clothes


moth and fleas, as well as house mice and garden pests like slugs. All the kits give customers a great discount on the price of individual products bought separately, so they


represent great value too.


For more information contact STV on 01953 881580 or email: info@stvuk.co.uk


STV create a big splash with new ‘featured products’ at their Brandon showroom


FEBRUARY 2024 DIY WEEK 21


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36