NBG explores customer loyalty

NBG explores customer loyalty

Tom Hayman, Managing Director of Harris & Bailey, reveals how adapting to the changing plumbing and heating landscape can help drive customer loyalty and support fellow NBG partners.

Harris & Bailey began trading in 1912 as a partnership between local newsagent Alfred Frank Harris and gravel merchant George Henry Bailey. Located a stone’s throw from the old Addiscombe Railway Station, Harris & Bailey operates across Croydon and the South East and has been an NBG partner since 2006.

Managing Director, Tom Hayman, who has worked at Harris & Bailey for over 40 years, has seen a lot of changes in the plumbing and heating sector over the years. He said: “Unlike larger national merchants, we’re in prime position to keep an eye on trends and challenges facing the sector and adapt to our customer’s needs — whether that’s sourcing bespoke products or flexible delivery and drop-off services. We build personal relationships with our customers, making sure we get to know and understand them.”

Since joining NBG in 2006, Harris & Bailey has seen an increase in turnover of nearly £5 million and has played an important role in the group, with several staff members taking active roles within the Plumbing and Heating Category Management Team. Tom explains: “NBG fits our approach to business perfectly and provides an additional level of support you don’t get from other buying groups. It doesn’t neglect the smaller deals and also understands the importance of building quality, lasting relationships with suppliers, both of which make a huge difference to partners and our bottom line.”

He adds: “Over the past few years, we’ve seen a huge drop off in the “seasonality” of the heating industry. It’s no longer the case that homeowners turn off their boilers during the summer months and only discover faults towards the end of September. Combi boilers are used all-year-round, meaning they can fail all-year-round.

“This means we need to make sure we can fulfil our customers’ requirements. However, this does have an added benefit for us — during the summer our margins used to dip and then spike around September. Nowadays, sales tend to level out across 12 months.”

Accompanying this is a shift in the types of work being undertaken by installers, something Tom attributes to the modernisation of central heating systems in new build properties. He said: “The heating industry has changed drastically over the past few years, with the market for underfloor heating growing every year. Our base in London has meant that we’re seeing more tradesmen coming to us for underfloor heating materials than ever before, since they’re working on high-rise flats and newer projects.”

In fact, the UFH market is one of the fastest-growing in the construction sector at an estimated 13% annually, reaching beyond the current rate of 8.7% for the construction sector as a whole. Market insight reporters AMA Research, for example, has found that the UFH industry accounts for almost 7% of the UK heating systems sector and forecasts a growth in revenue of almost 8% by 2020.

“New build flats are a big part of our customers’ workload, and we’re proud to support them. Having insights into these trends with a bank of shared knowledge and a strong support network from NBG means that we can monitor and plan for them. It allows us to make sure we’re anticipating key market moves and securing the best deals for all NBG partners. Ultimately, the end goal is to maximise sales and improve our bottom line.”

NBG News

  • NBG partners WHABS is set to re-open its doors after a fire damaged its warehouse.
  • Bathroom and Plumbing Superstore has launched a new product catalogue.
  • Trading Depot has launched a new podcast, “Inside the House”, featuring insight from industry leaders and professionals.
  • Plans for the NBG Conference 2019 are well underway. Partners, suppliers and guests will be heading to Glasgow on 19 and 20 November.  

For more information, visit www.nationalbuyinggroup.com, find them on Twitter at @NBGLLP or on LinkedIn at National Buying Group.

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