Professional Builders Merchant

How do you foresee the next 12 months in the heating industry?

Towards the end of 2010, we did start to see an uplift in demand for new products and replacement parts and 2011 has got off to a promising start. There is evidence to show that homeowners are opting for the repair rather than replacement option though, which is to be expected in times when families are tightening their belts.

Coupled with this, installers and heating engineers appear to continue to be in high demand, which is a positive sign that there is activity in the marketplace and makes it crucial that merchants are well stocked with spares and replacement parts to fulfil demand.

In terms of the overall market performance for the next 12 months, we expect the market to continue to grow, but at a minimal rate and we are waiting to see what effect the 20% VAT hike will have on the replacement market.

In addition, the amendments made to Part L of the Building Regulations will continue to influence the specification of boilers, as it will no longer be possible to supply Band B boilers. Hopefully this initiative will help drive the industry towards greater boiler efficiencies, and here merchants have a role to play by ensuring they stock a variety of manufacturers’ Band A boilers to provide installers with choice.

What do you see as the main issues affecting merchants at the moment?

Because the heating industry is well-established, with companies that have been operating in the market for decades, there is a mind-set among both installers and merchants whereby they tend to stick to the same well-known brands. But it’s important that there is healthy competition to ensure customers have choice and with this means that merchants and installers don’t have to compromise on quality over cost.

In addition, we have started to see price hikes in the industry, so perhaps it’s time for merchants to start shopping around to see what else is available so they can continue to offer installers attractive deals. Coupled with this, is the importance of competitiveness as many independent merchants will be experiencing margin erosion when trying to compete with the national chains that have greater buying power to make deals with manufacturers.

And how has Biasi adapted to changes in market conditions during the last couple of years?

Biasi entered into the UK market more than 15 years ago offering a ‘value’ proposition. However the company has come a long way in the last 18 months, in terms of changing perceptions and gaining greater credibility among installers. Today, we have made significant in-roads by supporting independent merchants, providing them with exceptional products that are well-made, reliable and include the latest technological innovations. Biasi has reinvented itself with the launch of the ActivA boiler range, which comes with a five year warranty and entered into the renewables sector after giving careful consideration to what it would offer and the features and benefits of the solutions.
We have also reorganised the sales force so that it is more customer-focused, providing valuable support to both merchants and installers.

What does that support to merchants entail?

The company’s approach to supporting merchants is to build long-term partnerships with independents who can then benefit from greater stability, support, sustainable growth and enhanced trading terms. We focus on ensuring merchants make a healthy margin and generating ‘installer pull’ through the independents to help drive sales by becoming the one-off installers preferred value choice.

Biasi offers complete system solutions, from solar packages, boilers and cylinders through to intelligent controls and radiators, providing a ‘one stop shop’ for merchants looking to offer customers integrated, complementary products. And in addition to making significant improvements in the product offering, we have also made it easier for merchants to sell our products by providing training for counter staff, offering technical support to them and their customers — especially if they need assistance with the specification on complex installations — and providing marketing support to help bolster sales. This includes arranging training events for merchants to help attract installers from their local area.

But perhaps one of the most attractive propositions we offer is our delivery service, so that merchants do not need to find space to stock large items such as the solar package as installers can order it in store and Biasi arranges for it to be delivered directly to the site. This means the merchant is not using up valuable floor space, which could otherwise be used to help sell products.

» http://www.biasi.co.uk/