Sunday, May 17, 2009

The current Economic Crisis, like most recessions at this stage, is operating very much against Motorists and Consumers interests right now


In my area of Automotive after-market for example, every time a vehicle manufacturer reckons he’s designed a car with consumables that are locked into him, the prices for those parts go through the roof. In a normal financial climate, this tendency is tempered by the less well known suppliers launching alternatives at much more sensible prices. This time around, however, the boot is well and truly on the foot of the Multi-Nationals, and from what I’ve seen and heard, they are, to put it very mildly, taking full advantage of the situation.

This has largely happened because so much of our manufacturing has moved from quite local production to China and other parts of the Far East. These long distances to market, mean that any-one trying to compete against the big boys has to buy relatively big quantities per order. On top of that, it’s always been the case that orders placed in that part of the world need to be paid for at the time of ordering. In the new difficult economic climate, fewer small to medium companies are ready or able to do that. This is markedly reducing the competition

A friend of mine owns a people carrier made by one of the leading vehicle manufacturers. He needed new Wiper Blades, and the Wiper Blades on his car were 2 different lengths.

He went to the main dealer who quoted him an outrageous price for classic metal-framed Wiper Blades with rubber blades, however the outrageous price wasn’t the end of the abuse. They then told him that they only sold Wiper Blades in packs of 2 of the same length. He got the same story at the Big Brand Original Equipment Wiper Blade Manufacturer, and more astonishingly from one of the UK’s leading Wiper Blade retailers.

So, to get a pair of original Wiper Blades for his vehicle, he would have to buy 2 pairs! That looks bad enough already, but remember, rubber Wiper Blades degrade without even being used. That’s why the manufacturers warn you that you’ll have to replace them within six to twelve months. So it’s very probable that the “spare” Wiper Blades would be little better than the first set when they wore out.

I managed to sort out my friend with a set of Silicone Retrofit Flat Wiper Blades for a lot less than he would have paid for the dealers old fashioned metal framed rubber bladed Wiper Blades. Typically, Silicone Wiper Blades come with a 12 month warranty and in practice they last three to five times longer than rubber Wiper Blades. Silicone Wiper Blades are the Best Wiper Blades for performance and longlife, but they often cost less than the OEM items. Additionally, the supplier was more than ready to sell one wiper blade of each length. In fact that’s the only way he sold them.

So the lesson is: Snoop around the Financial Crisis is squeezing out smaller competitors and the big companies are already Financial Crisisseizing the opportunity.

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