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Introduction of fixed pricing boosts EH Smith

Solilhull builders’ merchant EH Smith has reported a 30% increase in customer visits to its eight branches since it introduced fixed prices.

The new ‘Proper Prices’ campaign, launched as part of a wider £400,000 redevelopment of the firm’s Shirley, Solihull site and then rolled out across the group, saw 13,000 of EH Smith’s most popular items reduced in price from May 2013 onwards.

The campaign has also resulted in a 29% increase in revenue from smaller building firms and other trades - a key target market for EH Smith.

The Shirley site redevelopment increased the customer sales area from 400 sq m to more than 3,000 sq m, doubled the number of product lines; introduced good, better and best product options and introduced fixed collected prices for the first time in EH Smith’s 90-year history.

John Parker, chief executive of EH Smith said: “This was a bold move and marked a genuine culture change within the business.

“We carried out research with our customers into what they wanted from their builders’ merchant. We responded to their feedback by giving them more choice; price-matching against our competitors and opening up the whole of the six acre site in Shirley to allow customers to browse and collect their materials whenever they need to.

“The investment is already paying dividends.”

A redevelopment of the Leicester branch is now underway with more branch investment planned for 2014.

Source : Andy Coyne - TheBusinessDesk

30 October 2013
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