Equipment pricing debate rumbles on

Equipment pricing is a hot topic in the distributor community.

This is the season when manufacturers and suppliers typically announce their prices for this year – and whether they have increased, maintained or even reduced them.

This prompted some dealers to comment on how these figures are arrived at in the first place.

For example, Marios Poumpouris, MD of Chiller Box, asked: “Manufacturers are very quick to tell us that they are holding prices, but with commodity prices plummeting in recent years, why aren’t we actually seeing a drop in equipment prices?

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“We have been in business for nearly 12 years now, and prices have continually inched up and up, even through the recessionary years.”

Furthermore, Greg Annalls, commercial director of Hampshire-based distributor, Catering Equipment Support, agreed: “With commodity costs dropping, I believe we should be seeing a drop in equipment prices to the supply chain.

“We need every available tool to help maintain market stimulation and investment in new equipment purchases.

“Distributors often work on tight margins with more added value expected from the customer in terms of kitchen design, competitive pricing and after sales support.

“In today’s market your profit is not necessarily driven by the prices that you sell at, as there are many discounted routes to purchase available for the customer; your profit in a competitively priced market is greatly affected by what price you purchase at, and this small increase profit/margin can be used to support the overall package offered to the customer.”

Over at the Airedale Group, MD Mike Butt reported: “We have seen a wide range of price increase requests for 2016 – up to 9%.

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