Fireclay sink brand Shaws of Darwen has announced a major price increase across its product portfolio, which one distributor has already warned could be as high as 300%.
Confirming to kbbreview that a price increase was in fact on the way, Jonathan White, sales director EMEAA for Shaws’ parent company, Fortune Brands Innovations, said that the current prices “no longer reflect the true cost of manufacturing and supplying Shaws products”.
White also confirmed that the new prices would come into effect on November 1, adding that Fortune Brands had “absorbed a significant portion of manufacturing and operating cost increases” over a number of years, instead of “fully passing these through to the market”.
While acknowledging that the company’s pricing was already adjusted last year, White admitted that those measures “did not go far enough to restore a sustainable commercial model”.
White continued: “Shaws fireclay sinks are manufactured in the UK using specialist techniques, with each sink individually cast, hand-finished and glazed. This labour-intensive process is central to the brand’s craftsmanship and forms an important part of its manufacturing cost base. We recognise that these increases are substantial and will significantly change the commercial proposition for our retail partners. This is a structural adjustment rather than a routine annual increase, and we understand that the revised model may not be appropriate for all customers and applications.
“Our decision is to continue offering Shaws branded products in EMEAA at pricing that reflects the true cost of manufacture and supply, rather than discontinue the brand in the region,” White concluded. “Customers have been notified ahead of the changes taking effect on 1 November, and account managers are available to discuss the implications and support them through the transition. Existing warranties remain unchanged, and customers will continue to receive the high standards of service and support they expect from Shaws.”
Speculation around the price surge began earlier this week, when retailers were alerted about the increase by Clearwater, a company which distributes Shaws’ products as part of its Sterling Brands portfolio. In a formal letter sent to retailers – which has also been seen by kbbreview – Clearwater clarified that the pricing change “averages around 300%”.
Clearwater said it was “committed to ensuring that this decision by Shaws does not negatively impact our retailers”, and said it was doing everything it could to support its customer base. As part of that support, Clearwater says it will continue supplying stock already held within its warehouse at existing prices until those stocks are exhausted. However, once the existing stock had been depleted, any future orders would have to be supplied to retailers at the new much higher price.
Furthermore, once the existing stock has gone, Clearwater says it will no longer hold Shaws’ products as stock, and they will instead be supplied only as “special-order items”.
Clearwater’s specific advice to retail customers is to “work on the basis of the new pricing from November and to check availability before quoting or confirming orders at current prices”.
Understandably, the news of the immense price increase has not been well received by many Shaws retailers. Speaking to kbbreview, one retailer, who asked not to be named, said they felt they couldn’t continue offering the products after the cost increase as they simply could not justify the new price to their customers.
Bespoke kitchen retailer Andrew Crossland also said in an online statement that it had “made the difficult decision to discontinue all House of Rohl products” as a result of the news. Blasting the increase as “ridiculous”, the retailer said the decision was “unprecedented” and warned it could potentially “destroy the [Shaws] brand”.
• UPDATE – Following the publication of this article, Shaws of Darwen has given further information on its shock price rises, with the company insisting that the rise is not “a uniform percentage increase” across its entire range, and that it also doesn’t set the price that distributors offer products for.