Warns that chasing volume over profits will damage channel

CIH slam brown goods vendors

The chairman of electrical buying group Combined Independents (Holdings) has told the brown goods industry that it needs to shift from being focused on volume, and become profit driven.

Robin Millwood, speaking to the buying group’s suppliers at its annual lunch, said: "We need all of you to join with us to help change the market from being volume driven to profit driven.

"We are in a turmoil of a marketplace where it would seem no supplier can offer members a stable workable profit."

He added that current market practices of vendors would only go on to damage distributors and retailers and vendor’s themselves. "Some want to be market leader at all costs.

"Some have their biggest dealer on the internet, some do not want members to service their products and some take away terms but apparently pay certain members through the back door."

He also announced that the organisation would not be presenting its brown goods supplier award: "We will not be awarding the brown goods supplier trophy, with the hope that the suppliers will take a close look not only at themselves but their whole retail outlook."

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