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Now thats a busy yard!


posch jon
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We had a thread on CW very recently when most of these points were aired.

 

Couple of additional thoughts;

 

A, Pellets, I would have thought that using DIN spec pellets instead of commercial pellets would give to boiler manufacturer no option on a warranty issue. My home Tadano Mini K25 boiler has no statement about using DIN pellets even.

 

B, CW, They dont want their distributers handling any more than the small bags and ideally giving a bag away with each stove. CW deliver direct, retailer makes about 10% for handing the paperwork. BUT CW gain a name and address of a user who has used their products. So who does the business when the customer rings CW direct for a refill !!.

 

Cost of carriage is the key issue, pallet rate is currently £30-£45 depending on volume so that is also a plus point. Keeping your own marketing and local service sharp will also be important.

 

Believe me it is far far better to have a comptetitor selling at a higher price than you than someone selling at your cost or below. Been there and got that T shirt in another industry.

 

A

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This ^^^

 

The time to worry is if they start to cut their prices.

 

Thats something you can do nothing about at all so whats the point worrying about it. Cant see why they should, they are pretty cute unless they are specifically targeting someone, that happens in my old industry, put someone out of the game then slide prices back up.

 

A

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  • 2 weeks later...

I heard today that the chairman of Woodfuel Wales is the top man at Certainly Wood. Can anyone confirm this?

 

I also heard that the previous chairman was the owner of a big stove importing operation. As the members of these schemes and so on tend to get together to discuss business and how things are going - could this potentially be a problem? I did hear of a stove retailer who was part of the scheme who went out of business after building up the market in his area, and then "reporting back" sort of thing at one of their get togethers. Next minute, the chairmans company have set up in an empty shop just round the corner and are undercutting him by a fair old chunk until he gives up leaving them with no local competition.

 

Is there a possibility that an outfit like WFW can get a load of guys signed up to help develop a market in an area, and supply a lot of knowledge of that market, only for the chairmans company to come in once it's blossomed, use their buying power to corner the supply of timber, undercut the other guys and clean up?

 

Just a thought?

 

Andy

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This is what we were saying in the other thread 'coming to a county near you'. Somehow your wood supply needs to come from an independant source not from an estate which is part of the click. It really is all about who you know, their are no new people its just the same moving from job to job!

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