Falcon Foodservice Equipment MD, Peter McAllister, detailed the cooking equipment manufacturer’s pricing strategy in his interview during Specifi’s vNext virtual conference yesterday.
Specifi’s vice president of sales for UK and Ireland, Nic Banner, quizzed McAllister as part of the online event, which attracted nearly 600 industry delegates.
During the keynote session, McAllister was asked about Falcon’s current pricing strategy and he detailed: “Right now as an equipment manufacturer we are squeezed in the middle of huge price increases in all commodities.
“The easiest thing in the world for all supply chains is to pass those increases through, but we are deliberately not doing that. We want to support our customers and the recovery, so we are holding prices.”
However, he acknowledged: “The hard thing about that is there’s only so long you can do that. In that sandwich you can get squeezed, but right now our strategy is to hold and support our industry and our customers.”
On the Brexit impact, McAllister revealed: “As a British manufacturer, it’s been somewhat challenging for us. As prepared as we have been, we still saw interruptions with our materials supply.”
He further revealed that currently the Stirling-based manufacturer’s order profile has changed: “Normally about 70% of our orders would have a fair lead time, with 30% requiring a quick turnaround. In the last 3-4 weeks our stats were the exact opposite.
“I think what that means is, if you are bringing raw materials into the UK it’s pretty hard to predict demand. So if you add a little sprinkle of Brexit delays to a little bit of Covid recovery start-up, I think it’s extremely challenging for the supply chain. However, I think UK manufacturers are best placed to react.”