Martin Mongan, UK managing director of German brassware manufacturer Hansgrohe, has announced a price realignment across key product ranges.
The move will make prices more consistent with those on the Continent and follows concerns from UK retailers that European wholesalers are discounting Hansgrohe products online to levels they find impossible to compete with.
“As of March 1, a number of Axor and Hansgrohe key product lines have had their prices realigned to create a more competitive price point for our customers,” Mongan (pictured) said.
“The rationale behind this decision is largely due to the lack of product lifecycle pricing over the years these ranges have been available. Twenty years of price increases has meant certain key ranges have lost their connection to the market price levels. It is imperative that, with the transparency in prices from across different markets, we have a policy that will start to realign UK prices to be more in line with other European markets.”
Commenting on the news, kbbreview columnist Derek Miller, owner of Glasgow-based Scope Bathrooms, said: “This reduction should boost Hansgrohe’s chances of increasing UK market share, which should compensate for the likely dent in gross margin caused by the reduction in the first place. I heartily applaud Martin Mongan in putting his head above the parapet on this issue and his sensible acknowledgement that it won’t be rectified overnight. Hansgrohe has acknowledged the important role played by its independent retail partners and it is now up to the others to follow suit.”
- For the full interview with Martin Mongan, see the April issue of kbbreview