2022: Electrical Industry Outlook

2022: Electrical Industry Outlook

We can all acknowledge that 2020 and 2021 was difficult time for most, not only financially, but in the form of unfortunate inconveniences that don’t seem to stop. Globex Lighting has been keeping a close eye on the state of affairs in the construction industry as a whole and we gathered feedback from over 800 customers to provide you with this report and also provide you with solutions to adapt to the current way of things.

We are going to address a range of topics including but not limited to: pricing hikes, stock availability, accounts debts,  services, shipment time frames as well as additional benefits to electricians.

1. Pricing Hikes

We can all agree that pricing hikes are probably the highest on the list, the way the country has experienced stock shortages, lengthy delays, and what feels like a new price rise every week and still continuing, through our customers, we have observed on average, companies committing to at least 3-4 price rises in the space of 12 months. We understand that the industry has been hit hard, it is also true that many suppliers have record profit throughout the coronavirus pandemic.

Our response: Globex Lighting’s purpose has been clear from the get-go, it is to supply a high-quality solution at an affordable price point. The two words we despise at Globex are pricing increases, we try our best to be more competitive than the year before. We are adamant that our pricing is at least 30% than the nearest competitor, while our pricing is low, our fittings are of the highest quality. The reason our pricing is low is that we are a manufacturer direct to contractor model, all of our products have been designed in house and are guaranteed with a 3 years manufacturers warranty as well as labour warranty*.

2. Stock Availability

The whole of the Australian importing industry is smashed with lengthy importing times, 1000% price increases on shipments and a whole lot of other contributing factors that make products on shelves a difficult thing to accomplish.

Our response: Globex Lighting has kept 100% of our product range in stock throughout the whole pandemic and even into 2022, our stock allocation solution is managed through intricate systems that are designed to be pandemic proof, at any given time, we always have new stock in production and our stock levels in Australia are always above 90%.  You can have confidence in our ability to supply.

3. Account Debts

It’s fair to say you have been seeing the impact of BNPL services as told by the news every night, it’s now easier than ever to get a Zip Pay, or AfterPay account for retail purchases, a recent study has shown it is easier to create a BNPL account compared to opening a Google Gmail address.  We understand that contractors might need the convenience of buying more stock to complete several jobs off and start the next, this is a cycle that often never stops, the same style of BNPL that electricians have been accustomed to are also now being introduced to everyday Australians. This is why we do not provide accounts, we aim to uplift businesses rather than take away from your businesses.

Once you start to realise that accounts are nothing more than a trap to keep you buying from that particular store. You can start to take affirmative action in how to exceed your own expectations.

Many reasons why a customer needs to use an account:

  • Catch up from the last job
  • Take on multiple jobs at once
  • Need stock to finish off previous jobs
  • Don’t have the cash ready to buy from alternative stores due to the accounts missing

Before we dive into the response, we will first take a look at a recent case study:

Case Study: Customer knew he can save 55% on dealing with Globex

Customer X: We have given a quotation of products at over 50% better prices compared to the customer’s current wholesaler, with products that are better and offer the same warranty & labour warranty.

Rather than deal with Globex Lighting on that particular product, the customer decided to stay with the existing supplier and pay 55% extra. Even though the customer acknowledged that they could put back a large figure of money saved back into their family life, business or any other area such as an existing debt. The customer instead chose to stay with the current supplier.

Reason: The customer advised they have a huge credit limit with the wholesaler and they need to get the products on accounts to start off other jobs and pay back other jobs.

Solution: If this particular customer committed to our range, in the space of 2-3 orders with us, they would have afforded to close of existing accounts, and start saving over 55% on that product range of Globex Lighting going forward.

We have been advised to keep the name of the customer and the details of the order confidential.

Response: At Globex Lighting, we help customers save money on emergency lights every single day, our products are of high quality, we provide solutions to better your business, not take away from it so you can have more funds in your pocket to focus on marketing, getting more jobs, taking your family on vacation and anything else you can think of.

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