Newsletter Issue 2 – September 2022
Premium Products Lead the Way
The replacement market has finally returned to pre-pandemic levels, the boom in demand whilst welcome by most, despite the challenges it created, has finally come to an end. But it’s not boom and bust and shouldn’t be doom and gloom either, we just need to get back to business as usual and move with the latest consumer buying trends.
According to a report from Business Pilot, who aggregate over 200 of their retail installers performance data, leads and new sales are down 30% in June versus June 21. Not a big surprise given that homeowners are flocking back to their favourite holiday destinations in droves. (Let’s not forget, leads last year were abnormally high and we always knew the market would return to normal one day.)
However, another notable statistic from the recent Business Pilot report is that average order values continue to climb month on month, up 43% in June compared to June 21. This is absolutely in line with our experience in fabrication where we continue to see large order values of our Timeless Flush and Residence Collection. Premium timber alternative windows and doors now represent 30% of our overall sales. The shift to higher order values and premium products also reflects the whole house approach to replacements of old uPVC windows. Wealthier homeowners want their homes to look great and will invest in achieving that makeover.
The Greener Homes Attitudes Tracker from NatWest shows that the number of people planning ‘green home improvements’ rose from 16% in at the end of 2021 to 22% in May this year. Homeowners are bringing energy efficiency improvements forward in response to rising energy prices. Solar PV has seen a similar upward rise in demand. We are working on bringing energy efficiency back to the front of our offer again. All of our products are A+ Rated and our new Sheerline Aluminium Windows and Doors are the most efficient products available, achieving 1.4 U Value as standard on double glazed units.
The average UK house price was £281,000 in April 2022, which is £31,000 higher than this time last year. The value of larger homes has increased even more during that same period. Homeowners have more equity in their homes and many have savings too, or are willing to use finance to pay for home improvements. People see the value in investing in improving their home, their biggest asset, and are generally choosing to do this rather than sell up and move.
It’s also worth noting that according to figures from the Office for National Statistics, almost half of the spending on home improvement in the ten years from 2011 to 2020 came from the upper fifth of households by income, with almost 80% of the send from the top half by income.
This group, although not immune from the impact of inflation are, as wealthier households, far better placed to ride it out, and can be expected to continue to spend. Now is the time to promote those premium products!
Rob Waller Regional Sales Director
Mobile 07738 949634