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Monthly Archives: November 2007

Another milestone.

The last twenty odd years have been to put it mildly interesting, a long series of challenges each one seeming to propel me to the next level. In that time Consols has travelled a long rough road to become what it is today. Our ongoing growth and success has been very rewarding for me personally, I am priveliged to work with a carefully assembled team that is second to none. During the last year trading conditions have been the toughest I  have ever experienced and this has made us look long and hard at what we do and where we are heading. The biggest problem is rising costs coupled with a trading climate that has degenerated into a bitter war of attrition as the fight for market share intensifies.

At times like this my experience has invariably been that fate will intervene, sure enough it has and the legendary Consols good fortune has surfaced again. We have taken steps to reduce our cost base as a result of an unforseen chain of events that has culminated in the most satisfying, pleasureable deal I have ever closed. While it will not make me rich immediately I am quietly confident that Consols long term future has been secured and we can move forward with confidence. All will be revealed in due course.

The playing field must be level.

As a passionate exponent of free enterprise and individualism I view free and fair competition as the engine of consumer choice and value for money. Unfortunately in todays increasingly corporate and bland business climate free and fair competition has assumed a similar guise to that of “truth” in the hands of a slippery corporate lawyer. Immense financial clout enables competitive principles to be turned on their heads often dictatating that what masquerades as a level playing field is actually a corporate minefield.

This state of affairs is incredibly unhealthy and could potentially lead to a situation bereft of diversity and therefore real choice.

In many cases this has already occured on highstreets throughout the UK where multiple retail operations impose a bland uniformity bereft of greengrocers, butchers, bakers and fishmongers. These are increasingly located within one of the big four supermarkets which will, inevitably, be strategically located on a prime edge of town location. Collectively these insatiable monsters are mesmerising their customers whilst they pillage their wallets and brainwash them into almost total acceptance that there is no alternative.

That is the corporate line but they are economical with the truth, there is usually an alternative if you care to look. The historical mining village of St Day is a good example of real consumer choice and therefore healthy diversity. It is not really on the tourist route and the malign influence of second homes is mercifully slight. In comparitevly recent times it has been percieved as run down (unspoilt?) but suddenly is has in estate agent parlance “arrived”. Being at the epicentre of the golden triangle twixt Truro, Falmouth and Reduth it is now a highly desireable location.

The sense of community is palpable, it boasts two excellent pubs, two butchers, a convienience store (part of a major chain), a traditional family run general store, a fish and chip shop, launderette, a lady who makes and mends clothes and a fiercly independent quirky oil distributor with attitude.

It is the recent opening of the ecellent general store by a young village couple that has caused such excitement. It really does stock useful, local wherever possible, goods that means that in reality the weekly jaunt to a supermarket is no longer necessary. The day this wonderful facility opened it was visited by two grey suited junior management nonentities from the multiple convienience store rival who vowed to close it in short time.

A little down the line this has not happened as the young couple offer genuine value for money,choice and terrific banter which actually makes shopping a pleasure rather than a brain numbing chore. The real bonus is that a car journey is not necessary for most people within walking distance.

The sinister undertone is that the convienience store actually threatened to close the new shop down by a price war which is a bit rich as hitherto they had been percieved as bandits when there was no opposition. Likewise the term convienience was a bit of a misnomer as they peddled useless junk such as lottery tickets, coca cola, crisps and cheap alcohol, it was virtually impossible to obtain any useful foodstuffs apart from disgusting industrial pies and greasy savourys which were essentially a health hazard, a heart attack in a paper bag.

The insidious practice of damaging another business by unsustainable financial pressure is a standard ploy engaged in by corporate outfits on many fronts. “Loss leaders” and “discounts” are cynical con tricks “BOGOF” tells me that the item in question was overpriced to start with. The real price which any ethical business will strive to maintain is the lowest possible price consistent with generating a profit and allowing for investment. Profit is not a dirty word, it is reasonable to expect a return on investment but that must never be construed as a licence to financially violate customers.

In the oil industry the practice of price manipulation is rife and the offending companies ought to be ashamed of themselves. It is not right that supermarkets enjoy extended credit terms on their fuel purchases, neither is it ethical that customers who shop around for domestic oil prices get quoted rates that are hopelessy unrealistic while established customers are often chrged as much as 10 ppl over the odds to subsidise this travesty. This practice has been rife on our patch this year probably exacerbated by a frantic scramble for market share in a comatose marketplace.

This has actually brought mixed blessings insofar that we have haemorraged work at the bottom end to little profit for anyone. This has been gratifyingly countered by mining the rich seam of customers at the top end who have basically been ripped off and are not best pleased when they realise the fact. This very act of realignment is effectively levelling our playing field very nicely and many more people are enjoying real value for money which as consumers is their absolute right.

The bleak mid-winter.

After a pretty awful summer the last three months have been remarkably benign. However the shortening of the days invariably heralds a time of dank dreariness when everything seems wet and muddy. It is comforting to think that in less than a month the shortest day will have been and gone and the days will start drawing out once more.

The current mood of the country seems to mirror the season as one piece of bad news follows another. Despite oil prices being somewhere in the stratosphere at an all time high we are encouragingly busy as the Christmas holiday appears on the radar. In Cornwall it is dampness rather than extreme temperatures which triggers the surge in demand that usually gathers momentum in mid November. In recent weeks it has been embarrassing to quote prices some 45% higher than this time last year. That said the majority of customers are stoically resigned to a situation influenced by world events beyond our collective control.

Since its introduction the winter fuel supplement has been one of the more practical benefits introduced by the Government to assist the elderly and disabled. This year its highly beneficial effect is diluted by the high price of fuel and it is possible that many will experience a degree of hardship as a result. It is good to see that organisations such as the Royal Agricultural Benevolent Institution , the Soldiers Sailors and Air Force Association and Masonic Lodges who are active in assisting the elderly and disabled in a practical manner. This is evidenced by payments made on behalf of customers by these worthy organisations, discretely assisting the less fortunate among us in a practical manner. It certainly reinforces the adage that a ittle help is worth a lot of sympathy.

My previous statement that prices had probably peaked last week was promptly confounded by another sharp increase over the next couple of days. However I am still confident that things are set to gradually improve in the medium term as the economic downturn dampens demand.