Monday 18 January 2010

Goverment backs supermarket Embroidered Schoolwear

We have had a lot of feedback from our customers regarding this subject.
Here are my thoughts.

Embroidery and school wear is no different to selling anything else. The grocers, butchers and fishmongers all suffered as a consequence of the Giant supermarkets.
The problem (as far as the government is concerned) with embroidered school wear in the UK has been that schools have had arrangements with independent retailers who were allowed sole rights to sell the schools embroidered garments, which are Copyright of the school in exchange for money.
The Office for Fair Trading reported....
In the UK a third of schools who have an arrangement with a single school uniform supplier benefit financially from this arrangement.
84% of schools insisted that the uniform must be purchased from a designated supplier or from the school.
Exclusive outlets were even more expensive when compared with prices charged in supermarkets: a 150 per cent difference overall (108 per cent primary school items and 173 per cent secondary school items).
So don't put your head in the sand and say it will not effect you!
At ETC Supplies, we have been developing ways of fighting back.
An independent cannot compete on price.
You have to buy from wholesalers, who in turn buy from importers who in turn buy from manufacturers. So even before you can sell the goods you are faced with three layers of profit making. The supermarkets use these three layers as their profit, plus their bulk buying and logistics make the goods cheaper.
Yes, you may argue about quality. But when faced with competition such as seven day opening, late night shopping, money back guarantees and half price uniforms many of your customers will jump ship.
The only option you have is to be smarter and offer something different.
It will take the supermarkets a long time to catch up with you.
At ETC Supplies we are working on developments and products that only we can supply. So think about it!
Who do you buy your consumables from?
Who did you buy your embroidery machine from?
Who did you buy your digitising system from?
I bet these are the same companies that will use your profits to supply the supermarkets so they can take your business away.
Here are some useful links for more information.

http://www.oft.gov.uk/shared_oft/reports/consumer_protection/schooluniformssummary.pdf

http://www.themoneystop.co.uk/092009/3550.html

http://www.oft.gov.uk/news/press/2006/135-06

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