ÐÇ¿Õ´«Ã½

Highlights this quarter:

• On balance* 24 per cent of conservatory fabricators reported a rise in sales in April to June 2006 compared with the previous three months.
• However, a net 9% of fabricators still sold less in April to June 2006 compared with the same quarter of 2005.
• Forecasts for July to September are good with a balance of 25% of fabricators anticipating an increase in sales compared with the previous three months.
• A net 8% also expect better sales over the next three months compared with the same three months of 2005.

* The difference between the percentage of companies reporting an increase over those reporting a decrease is the net balance.

Prices

The average price of an installed conservatory in June was £7,103. This is a decrease of 6% from £7,543 in March. The price excludes dwarf walls, bases and VAT.

Companies in the North (£7,525) reported higher average prices than those in the South (£6,988) or Midlands (£6,846).

Average conservatory prices were notably higher for large fabricators (£9,350) than mid-sized (£6,958) or small firms (£6,776).

Conservatory Styles

47% of conservatories installed in June were Edwardians/ Georgians. 31% were Victorians, and 17% were Lean-to’s. ‘Other’ conservatory styles accounted for 5%.

Outlook

A balance of 18% of fabricators are more confident now about the overall prospects for the conservatory market than three months ago (chart 4). Large firms (net 42%) and those in the North (23%) are most positive.

A balance of just under a fifth of fabricators expect the conservatory market to improve in 2006 compared with 2005. Of those anticipating growth, 25% expect increases of 20% or more.

Problems

The main problems facing conservatory fabricators in the last three months were price cutting in the market (64%), margin squeeze (60%) and supplier price rises (58%). The single biggest problem was price cutting mentioned by 25% of fabricators.

Overview

‘Although there are growing signs of a slow down in America,’ says Mike Rigby, whose company Michael Rigby Associates produced this report, ‘this is balanced so far by growth in China and other emerging powerhouses. The UK economy is improving. Last quarter it grew at its fastest rate in two years. Even Europe is picking up.

‘Despite signs of decline in the US, its slower growth puts many to shame. In the UK, householders are feeling the strain of rising utility and council tax bills, and debt is beginning to bite.

‘But a strengthening economy, still low interest rates and high employment plus high immigration is fuelling a widening disconnect between homes needed and homes available. Demand can only rise.’

Comment

‘It’s time to stop worrying about price and start thinking about lifestyle – customers’ lifestyle’, says David Leng, Managing Director of Eurocell, which sponsors this survey.

‘Price should not be the focus or the most influential factor when selling. Everybody wants good value for money without compromising on quality. But with so many companies falling over themselves to offer cheaper conservatories, price is not a selling point, particularly when it is not what home owners are focused on.

‘When considering buying a conservatory customers imagine how it will enhance their lifestyle. Are they going to use it for extra space for their children? Or to get away from noisy children? For entertaining? Or simply to add another room to their house? You need to know what they want, then you can really start to sell.

‘Customers may not be aware of all their options. Whether to choose polycarbonate or glass for example. If they want a quiet room to talk or relax in, do they know how noisy polycarbonate is when it rains? If they imagine how good their conservatory will look, do they understand how dirty and unsightly polycarbonate will get, and how difficult it will be to clean in just a few years? Do they understand that climate control glass will make a huge difference? Self cleaning glass too.

‘What about colours? White, oak, rosewood, cream? Homeowners like colour, and are willing to pay more for it. They’re not short of money. They just don’t feel like spending it if all the salesman talks about is price. Then add-ons come into the equation. Heating, lighting, blinds, air conditioning, floor tiling, perhaps even furniture?

‘Customers want to imagine using their new space and all these extras contribute to the overall picture. Find out what customers want and offer it. Those who make the effort to push added value will succeed. Can you really afford to ignore them and just give it all away?’

The Eurocell Conservatory Roof Report, a quarterly trends survey, is produced by Michael Rigby Associates, and sponsored by Eurocell Profiles Ltd. For survey details or a free copy of the full report visit or contact Lucia Di Stazio, Michael Rigby Associates (01453 521621).