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Doug Holloway

  • Posts: 3917
Are our suppliers struggling?
« on: February 28, 2010, 10:47:42 am »
Hi Guys,

With the talk of Carpex and who's not going, which apparently includes Alltec, Ashbys, Hydramaster and Texatherm, all exhibitors in the past,  are our suppliers finding the current economic climate difficult.

In a lot of ways a CC company can quickly reduce it's cost but suppliers are much lesss flexible, having premises, stafff etc which are much more fixed costs.

I am not suggesting any particular company is in trouble but what have you heard?

Cheers

Doug


Kinver_Clean

  • Posts: 1120
Re: Are our suppliers struggling?
« Reply #1 on: February 28, 2010, 10:50:53 am »
From what I understand- the fees charged for exibiting at these shows is rising and companies are questioning the cost/benefits of being there.

God must love stupid people---He made so many.

Colin Day

Re: Are our suppliers struggling?
« Reply #2 on: February 28, 2010, 10:59:18 am »
I would imagine such events are actually a "Luxury" that perhaps our suppliers can't justify spending the money on for the time being.


from edge2edge

  • Posts: 1507
Re: Are our suppliers struggling?
« Reply #3 on: February 28, 2010, 11:17:32 am »
Doug I always thought in hard times increase your advertising budget and hence your presence at show where people can see yourselves along with your products etc.Regards Alan(swindon)

Joe H

Re: Are our suppliers struggling?
« Reply #4 on: February 28, 2010, 11:23:47 am »
I have heard Carpex is very expensive to show, plus 3 nights and meals hotels for staff.
Shows at Birmingham NEC are even more expensive, and I heard even if you want an extension point for electrics you cant roll out your own - you have to use the onsite staff (at a cost of course). Tea coffee facilities exhorbinate too.

Some will put their advertising budget to something more cost effective - we all think that way dont we?

colin thomas

  • Posts: 813
Re: Are our suppliers struggling?
« Reply #5 on: February 28, 2010, 11:28:41 am »
one of our suppliers told me two or three years ago the price of a smallish stand per day, i can't remember the exact figure but i was gobsmacked, with the cost of putting up at a hotel and other costs it must be hard to justify going to these exhibitions unless you think you are going to generate a lot of sales and do they? these days i think most people would find out all they need to know online and then go to the company to see the machine working etc,

colin
colin thomas

Peter Sweeney

  • Posts: 534
Re: Are our suppliers struggling?
« Reply #6 on: February 28, 2010, 11:42:38 am »
Most exhibition prices start at around £230 per sq metre. This is standard shell scheme stands with the biggest no more than 12m sq. Obviously not suitable for anyone with any sort of equipment to demonstrate.

Outside of this you have to pay for the construction of a stand (very expensive) and if I remember correctly the price per sq M is higher still. As already mentioned, you have to use the contracated suppliers for electricity, water, carpeting, tables and chairs. The list goes on but if you imagine that the cost of a single plug alone will cost around £150 then you can quickly see why the costs go over £10k very quickly and thats without all the staff/logistics costs.

All exhibitions are expensive and in this digital age there are many that question the value they have for suppliers when you think about how much they would have to sell to get their outlay back (expecially those importing stock for the U.S. ie most TM sellers).

Ken Wainwright

  • Posts: 2107
Re: Are our suppliers struggling?
« Reply #7 on: February 28, 2010, 05:56:04 pm »
I truly believe Doug that you are correct and right to raise the issue.

I've heard through the grapevine of two significant companies in different parts of the country who are really having to tighten their belts.

Our suppliers will have substantial fixed overheads and with reduced sales of capital equipment, unfavourable currency markets and many of their customers perhaps working with reduced stock etc. the last year or so must have been very challenging for them. And it's not over yet :(

As for exhibitions, another supplier told me that the last time he did Carpex, or was it the NEC show?  it cost him in excess of £26k. That's a hell of a lot of extra profit for a small company to generate from a show.

This is one of the (small) reasons I feel that it's important to support our industry by attending these events. The more feet through the door, the more smiling faces, the more positive feedback and so on will help to build that magic commodity: CONFIDENCE.  The media have had made a killing (literally) with negativity, lets all play our part to generate that feel good factor  :)

Safe and happy showtime :)
The Ken
Veni, vidi vici, Vaxi
I came, I saw, I conquered, I cleaned up!

Terry_Burrows

  • Posts: 1643
Re: Are our suppliers struggling?
« Reply #8 on: February 28, 2010, 06:57:38 pm »
 ::) ken have you looked at my posts on the mytee I will be taking it back monday and asking for full refund as the inline heat buttons
seem to pop themelfs out! :P
WWW.FASTESTWINDOWCLEANER.CO.UK
GUINNESS WORLD RECORD HOLDER
BURNING RUBBER FASTER!
NATIONAL FEDERATION OF MASTER WINDOW CLEANERS.

Griffus

  • Posts: 1942
Re: Are our suppliers struggling?
« Reply #9 on: February 28, 2010, 09:15:01 pm »
Alltec are listed as an exhibitor as at Dec 2009.

Numatic are missing though.

John Kelly

  • Posts: 4461
Re: Are our suppliers struggling?
« Reply #10 on: February 28, 2010, 09:54:25 pm »
Numatic are more of a janitorial supplier rather than carpet cleaning. They always have one of the biggest stands at the cleaning show.

robert meldrum

  • Posts: 1984
Re: Are our suppliers struggling?
« Reply #11 on: February 28, 2010, 11:42:52 pm »
Any company relying on carpet cleaners alone to provide them with a substantial and profitable business is taking a pretty high risk. They need a much wider client base who purchase consumables on a regular ( weekly or monthly ) basis for cash flow and sales volume.

Unlike carpet cleaners a retailer might turnover £4000 in a week but only retain 15% -20% of that after all costs have been deducted where as a carpet cleaner is likely to retain more like 60%.

A relatively small drop in turnover especially if it continues for some months could easily cause the demise of an otherwise profitable small manufacturing / supply business.








Gary Webber

  • Posts: 252
Re: Are our suppliers struggling?
« Reply #12 on: March 01, 2010, 07:33:56 am »
Hi Doug,

As suggested the high costs involved dont always warrant exhibiting at the show. In the case of Texatherm, Mark has aquired larger premises and is gearing up for expansion! The move is set to take place on-near 1st April, so his business is tied up into changing premises over the period when the showtakes place!

Regards

Gary