I was just going through Coventry Group's website again today and I found what I think is an interesting comment made by the Chairman- Roger Flynn (07/11/14)
"the plain fact is all the available data shows that the fastener industry which has traditionally made good profits is right now profitless and trading on unsustainable terms"
http://www.cgl.com.au/docs/corp-asx-announcements/07-11-2014-chairman's-address.pdf?sfvrsn=2
Konnect is the Coventry Groups largest and was the most profitable out of its four main subsidiaries.
The report goes on to give an explanation as to why the business may not be preforming so well.
These include, a strong Australian dollar, slow demand for product, having to sell the product at a lower rate to be competitive thus lowering the profit and the most worrying- being cut out of the deal.
Suppliers which were once selling to Konnect are now selling directly to Konnect's customers.
How would you ever get that customer back?
What does this mean long term for the Konnect business viability?
(this is totally a "sales" brain thinking out loud)
No comments:
Post a Comment