Let’s do cheap
Dumbing down the price
I’m not sure if it is only the blinds industry that seems to want to innovate and then kill the opportunity by competing to sell for the lowest possible price, but recent chances to make anything other than a quick buck would suggest that is the case.
Duo blinds have been around for a long while but only in the last couple of years have they become mainstream. So why are there so many people trying to sell for the lowest possible price? I looked at the pricing last year and as a manufacturer, I decided that I would rather have a small share of the market than try to push this time consuming and expensive to make product for as little profit as possible. Consequently, I don’t lose money on a single blind I sell to the trade and the retail sales show a healthy margin. An added bonus is that I do not have to keep carefully wrapped offcuts in the hope that the next customer will want the same fabric and colour.
This year has seen all the main manufacturers doing the same and increasing the number of different products to the levels far in excess of what the market can bear. The years end for a lot of the big players will see them writing off a lot of overstock. Must be nice to have the option to show that loss against the profits.
If you have the buying power of the larger M2M guys and the space to store the offcuts properly then you can make a decent margin selling to traders who don’t make their own blinds but only if you don’t have to keep so many less popular fabrics in stock and there is still the possibility that this particular bubble could burst sooner rather than later. As I stated at the start, these have been around for a long time and weren’t always so sought after for a reason which seems to have got lost. They’re not anything other than a gimmick and all the traditional types of blinds still retain a healthy share which currently keeps on growing.
I’m not going to give up manufacturing these and other high end blinds but I am going to maintain the prices I believe they are worth making them for and I’ll settle for less to make and a greater profit level per blind and at the year-end I can chuck out any over-stock and not worry about how much money I’m losing to do it.
Rick Grain Monday, March 13, 2017