Earlier on in the week, George Osbourne said that he was keeping an eye on all industries to make sure that price reductions created by the sharp drop in oil price were passed on to the consumer. That’s ALL industries. Not just supermarkets and fuel companies at the pumps.
Lower oil is having an affect on other products. Holidays and flights are cheaper than they were six months ago. The cost of tyres have come down too. Even polymers, the stuff that we need to make PVC to be turned into windows and doors, have come down quite a bit since oil started to drop. Click here to go to a website which shows the price drops in all sorts of polymers, the material crucial in the creation of PVC.
I understand that we pay higher prices from our suppliers because when polymer prices were higher, fixed term contracts were probably signed between fabricators and syscos at those higher prices. But there are polymer deals done all the time, and those deals being done now at lower prices should filter down the chain via fabricators then on to installers, reducing the amount we pay. Like everything else, I believe that if the price of something can go up, it can go down too, whether that be in the short or long term.
So, I want to know what you think. With polymer prices dropping quite significantly, should our industry pass these potentially large reductions down the chain? Should the companies at the top of the chain do nothing and retain those savings for extra profit margin, leaving installers to continue paying prices when oil was more than double it was now? Could a reduction in window and door prices actually be good PR in front of the homeowner?
To try and gauge opinion, I have created a little poll. It would be great if as many of you as possible took part in this, as it could help put pressure on the industry to ensure that any price reductions are passed on.
To clarify my position, I do believe that what we pay for our windows and doors should come down. Those savings made when polymers and other raw materials are bought should be passed down. Whether that is now, or further down the line when new supply contracts are agreed, pricing has to be fair at the bottom end of the chain to installers and ultimately, the homeowners. And you never know, with a little price drop here and there, it might stimulate our industry further and help to actually increase sales.
All comments on this are very welcome in the section below. It would be great to get some significant debate going on this.
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