Kitchen Secret #2
Why
you shouldn't pay attention to a 'kitchen sale'
“The
28 day rule allows a trader to claim a reduction on products he may
wish to include in a sale or other promotion. It requires that the product
must have been sold at a higher price for a period of 28 consecutive
days within the previous 6 months in that outlet”
Ref. http://www.dti.gov.uk
So what does this effectively mean when
applied to the kitchen industry?
Whenever new legislation is drafted,
both individuals and organisations look for ways around it. Kitchen
companies in the UK can ‘get around’ this legislation in many different
ways.
The first way is to simply
rotate stock that is ‘on sale’. Imagine that a kitchen company offers
a range of 24 different kitchens in its catalogue. All the company has
to do to constantly have a ‘sale’ is simply continuously market 20 kitchens
out of its 24 as on offer. All they have to do is to maintain a roster
for themselves, which then keeps a record of which ranges are not on
offer.
However,
this effectively means that a kitchen company in the UK can offer over
83% of its stock as ‘on sale’ all of the time.
What this
does is it takes out 4 kitchens on a rotary basis every month from the
offer. However, if there are 2 similar kitchens in stock, all the kitchen
company does is to ensure that only one is taken out from the available
offer at any one moment of time. Although this appears to be looking
at things back-to-front, from a kitchen companies point-of-view because
of the existing legislation in the UK it makes more sense to focus on
the kitchens that aren’t on offer.
So
how do kitchen companies make sure that you don’t want the kitchen that
isn’t on offer?
There
are two ways of doing so. One way is to produce a separate ‘sale catalogue’
every month. All this does is to constantly omit ranges that aren’t
on offer. The second way is for the company to reply on the dreaded
‘kitchen salesman’. Companies
like to call him a ‘designer’ but in this situation most people know
better. His / her (let’s not be sexist!) job on this instance is to
focus the customer to the ‘benefits’ of another kitchen door. This will
be covered in greater detail later on in Kitchen Secrets.
By
taking kitchen ranges ‘out of offer’ for four weeks within a six month
period, kitchen companies have found a legal way of having a constant
sale.
However,
this only applies to companies that don’t change their kitchen ranges
that often. There is one more way of ‘beating the system’.Have
you ever heard the phrase, “New season ranges now in stock”?
Obviously there are certain kitchen ranges that remain popular over
the years – certain traditional ranges. Imagine within the range of
24 kitchens that there are 12 that generally aren’t changed. These kitchens
might involve oak, pine, ‘flat door styles’ etc., generally ranges that
won’t go out of fashion. So what happens with the remaining 12?
One
option that kitchen companies might choose could be to change around
4 ranges every four months. This enables the kitchen company to tailor
their offering according to changing consumer tastes. All the customer
sees is a company keeping up-to-date with trends, offering kitchen ranges
that appeal to a modern marketplace. On the other hand, a kitchen company
can utilise this introduction of a new range as an opportunity to satisfy
the implications of the ’28 day rule’.
One
way of doing this might be to introduce the new kitchen range four weeks
before it is advertised. If a new kitchen range is introduced without
any advertising and the kitchen isn’t on display in a showroom, how
is the general public supposed to know that the new range is available?
It isn’t. But it is still available for sale officially at full retail
price. Is it a genuine kitchen sale? Perhaps. Probably not. You
decide.
|
