Czech combi oven manufacturer Retigo is to hold its UK price list, in contrast to many other manufacturers which are increasing their prices due to the pound devaluing against the Euro and the US dollar.
Non-executive director Radford Chancellor told Catering Insight: “Whilst margins are being hit with the pound devaluation, Retigo will take a longer term view, and both myself and our colleagues in the Czech Republic believe the pound will recover.
“We will of course keep monitoring the situation, but the directors are keen to try and hold pricing during 2017 – this will give Retigo partners a clear advantage.”
He detailed: “Retigo is fully committed to the UK market, and wants to support its partners – as the company knows it’s very hard for dealers to pass on the increases once a project has been quoted on.
“The Czech Republic is outside of the Euro and this also gives Retigo a slight advantage on exchange rates.”
Chancellor detailed that effectively the UK cost base has reduced for Retigo as the manufacturer is paying less for services it is buying in this country, such as service, installs, transport, marketing, UK staffing costs, spare parts handing and end user training.
However, putting his main job ‘hat’ on as a consultant, he cautioned: “My concern as an independent consultant is when the pound does recover will we see the prices dropping?
“There is a run on equipment price increases at the moment and for kitchen houses, dealers and design consultants it very hard for any of us to go back to our clients with a project now costing 10% more.
“A lot of companies are quoting/bidding on projects and the price is fixed once they submit their bid.”