Fenestration News

Pre Pack Sale

It is in the industry headlines again, it causes controversy because it punishes others while rewarding failure.

Pre-pack started out as one of those warm and cuddly Government initiatives to save jobs and keep people employed, but has quickly become distorted and used to leverage an advantage.

The losers are those intended to be saved. The jobs are still lost, then the rest of us as taxpayers pay the redundancy and unemployment benefits. Then as an industry we get to fund those losses that the supply chain has suffered whether directly in increased component costs or indirectly in their increased insurance costs. You would have thought that was punishment enough, it’s not finished there a debt free company trading with an established name and its undervalued infrastructure (Website, factories, phones) gets to undercut you in the market place.

This all happens not in a free market free enterprise fashion, but behind closed doors by private arrangement to the benefit of those that personally failed and their professional advisors. This is not going bust in the traditional sense.

This absurd practice will continue until the industry kicks back. It is the industry that is permitting it to happen by continuing to buy from those companies that support and supply these practitioners. The supply chain may believe they are hoping to recoup some of their loses down the line, but they are in reality kicking loyalty and good customers in the teeth. Is that the sort of company we would wish to supply us?

All markets are changing, for the better who knows. But think about it Coca-Cola, Microsoft, Starbucks, Target, Unilever, Verizon have all pulled billions of funding from ‘FaceBook’ because they disapprove of their practices. Then this week, Next, Asos and Amazon drop ‘Boohoo’ amid Leicester factory claims.

The revolution, it is the Buyer that has power; they either cause success, failure or condone out of step practices. The alternative is they reward, fund and perpetuate the situation, forgetting one day it will also snare them directly.

Long haul, short haul you choose your future.

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1 message received  28/01/2021 12:46:02  18729