Consumer Credit Solutions’ Managing Partner Andy Wallace was interviewed for a “Voice of the Industry” feature by Chris Champion, editor of leading trade publication Glass News. With the economy improving and companies reporting an upturn in business during 2013, Chris asked for Andy’s response on the question: “Are margins being eroded by needless price-cutting?”
Andy commented: “If price-cutting is the only tool in your box and you’re squeezing profits to keep up with the competition, it’s definitely needless. Although we’re seeing some encouraging green shoots, buying big ticket items is still difficult for consumers. Banks aren’t lending and the remortgage market is virtually dead in the water. But slashing prices isn’t the answer.
“You can divide up the market into those for whom price is always an issue because they don’t have the money, those who haven’t been touched by the recession, and those who don’t have the money readily available but can afford it. It’s this last sector that needs opening up – but if the money isn’t accessible you have to cut the price considerably to persuade people to purchase using cash! Offering low interest or interest-free credit shifts the discussion from ‘can you afford it’ to ‘what do you want, when do you want it, how do you want it – and do you want the extras?’”
For more information on how Consumer Credit Solutions can help homeowners buy, call 0845 120 666.