In theory, economies of scale should benefit the whole supply chain, suppliers and customers, not just suppliers. But some
composite door slab suppliers are ‘victims of their own success’ and hog all the benefits. Energy companies are reminded by their industry regulator to share the benefits of oil price movements with their customers, but there is no regulator to see fair play in composite doors.
Recently some slab distributors strong-armed customers into accepting reduced choice and steep price rises. Many small customers were shown the door because it wasn’t economic to serve them. There’s that word again. Who ate all the pies, indeed!
Nick Dutton, Managing Director of Door-Stop explains: “Our investment in the economies of scale has driven its growth and enabled it to share the fruits of success with its customers. In contrast to those ‘victims of success’ who cut their choice of locks and hardware to single figures, Door-Stop customers enjoy a choice of more than 40 locks and 26 hinge options with its composite doors. And whereas the ‘victims of success’ have restricted service and supply, Door-Stop customers can depend on
3 day delivery whether they order one door or 1,000. Anytime online ordering with the easy-to-use door designer means customers can order what they want, when they want, and delivered to where they want; underlining Door-Stop’s total commitment to customer service.
“Increased efficiency and managed growth,” Nick continues, “means Door-Stop has also managed to absorb most of the impact of soaring fuel prices and raw material costs, restricting the 2011 price increase to just 3% for
prepped slabs, compared with a 12% imposed rise for slabs from the ‘victims of success’. There is no Door-Stop increase on glass, hardware, or upgrade options and no surcharge for currency or edge bands.”