Barking Mad

This month Pramland’s John Barker is looking at 2022 which brings with it a store expansion and new warehouse facility for Pramland and of course the continuing hot topics of prices increases and stock issues.

Welcome to 2022 everyone! I hope you’ve all had a nice Christmas and are fully rested and ready for another 12 months of pricing issues, stock shortages and customers generally trying to wind us all up? If you’re not. . . .UNLUCKY! You’re on the plane now, next stop Christmas 2022 – enjoy the ride! December for us seemed to have matched every other December that has come before it, a mad rush at the start of the month then a sudden realisation that it’s Christmas and the pram order will just have to wait until next month. December gives us all a little breathing space before the madness that is January.

This month I want to look at 2022 and what I think the big issues we’ll face will be. 2022 for me will be a little crazy as we start our store expansion. Working with trades people is never easy but trying to work with, and to organise multiple trades men from multiple firms, is like trying to juggle eels. I’m sure everything will come to together and fingers crossed we are not impacted too heavily by any shortages of materials, etc. We recently took a new warehouse on and the logistics involved in moving from one warehouse to another is mind blowing. The result is that for the transitional period you end up with zero clue where any of your stock is, when a customer calls to arrange collection it’s a frantic rush to locate items you know you have but have no idea where they are hiding. Oh well, the warehouse move will soon be completed and we can start to get some semblance of order back in to the operation.

The reason for the new warehouse? Two fold really, not only have we decided to turn 70% of our current warehouse in to shop floor (That’s a fairly good reason on its own) but due to on-going stock issues with the majority of our brands we are holding more and more stock in store, sold stock is coming sooner and we are now months ahead of where we’d normally be. This is something you will all no doubt be experiencing and you’ll all know too well the issues that arise from it. Not only does it require a warehouse the size of a friendly time lords tardis but it also has an adverse effect upon the business cash flow as

john@pramland.co.uk

Without a shadow of a doubt the good old favourite topic of prices will raise its ugly head again. After a huge wave of prices increases across many of our shop floors, brands have been telling me that shipping costs are starting to level. It’s safe to say they’ll never return to pre-pandemic levels but at least it appears we’ve seen the worst of these unprecedented charges

money gets turned into boxes at an alarming rate. Whatever you do don’t make my mistake and actually start to add up how much you’re sat on in the warehouse. It will both scare and upset you in equal measure. Every time you are forced to walk past that huge pile of car seats or strollers just tell yourself that it’s paid for and when you do sell it, which won’t be long, you’ll be a happy chappy or chappette.

So other than stock holdings increasing what else can I see us all discussing this year? Without a shadow of a doubt the good old favourite topic of prices will raise its ugly head again. After a huge wave of prices increases across many of our shop floors, brands

have been telling me that shipping costs are starting to level. It’s safe to say they’ll never return to prepandemic levels but at least it appears we’ve seen the worst of these unprecedented charges. With the new price lists many brands have taken it as an opportunity to issue new trading terms and these have been met with a mixture of praise and criticism. From my point of view, for what it’s worth I look at these changes in terms in the context of this business and not that of the industry. I can sit and debate how the independents will react and how that will affect a given brand in the long term but in reality how do the new T&C’s affect me. Can I afford to continue selling their items? Will I earn a margin that warrants the display they have? If I choose to walk away from a particular brand how will that affect this store? Do I have a suitable alternative or do I need to seek a new brand to work with? These are question only you can answer and although venting on Facebook helps us feel a little better the fact remains that the decision made affects your business and yours alone.

Of course pricing will continue to be a hot potato (I really want to insert a Lord Of The Rings gag in here) and something that again, you as an individual will choose to either ignore or let dictate your business. I changed my opinion on pricing a few years ago. I have zero idea why, as an industry we have to discount. We are after all selling a product the customer needs to buy, not wants to buy. We are firmly in the driving seat, to discount is to give money away for nothing. However, in saying this I don’t actively seek price matching nor do we chase prices. We have a level of business hitting my order book every week that I’m happy with. Yes, I could probably sell more but we’ll earn less from it, why would I choose to be a busy fool? If the customer wants to hunt out a cheaper price I’ll have a look at it and make my mind up if I want to sell it at that price. In all honesty I would say that I saw less pricing issues in 2021 than I have ever seen in previous years. Many of you will no doubt disagree with me on that but hand on heart it’s not something that A) I let bother me and B) I’ll let affect the day to day running of the business. You certainly won’t find me actively searching for prices cheaper than they should be. You could say I’m happy to be oblivious (or that’s what my wife says anyway).

With the new price lists many brands have taken it as an opportunity to issue new trading terms and these have been met with a mixture of praise and criticism. From my point of view, for what it’s worth I look at these changes in terms in the context of this business and not that of the industry. Having studied the economy and read reports from many of the retail sectors biggest brands 2022 is set to be a strange year for retail. Indications show that consumers are heading back to the high streets in numbers not seen for years but I am concerned that there are a number of businesses that are unstable but being held afloat by increased borrowing during the pandemic. As 2022 turns to 2023 I can see a different landscape for the nursery industry and it pains me to say but we may lose a few stores this year as businesses come to terms with the effects of the last 2 years. Fingers crossed we’ll all survive and thrive in 2022. Just keep one thing in your head when you get your year end completed - we’d all love an increase in turnover and profit but the last 2 years have been more about surviving, static figures or even a small decrease are something you should still be very proud of. For any business to weather the storm of 2020 and 2021 is a remarkable achievement and you deserve a massive pat on the back!