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Think about it. All the northern companies around this part of the world stay in the north of England. Safestyle UK for example, are much more successful in the north of England than the south. Same can be said with Coral and even the new Conservatory Outlet franchise. I’m sure the the bigger companies down south don’t venture much north of Birmingham. Why is this?
The reason I think is to do with the populations. Companies based down south are generally more expensive due to the south being a more expensive place to live. So expanding northwards with a more expensive price list may not always be the wisest option. The northern folk aren’t best known for their freedom of spending money, so they won’t get much joy. And they won’t much like to offer a cheaper range as it could harm their repuation down the other end of the country.
If your a northern company, used to prices being cheaper, going down south where the clientel are used to more expensive may seem like an easy way to make money. But the problem to get passed will be to convince that your cheaper products are just as good. Secondly, and more probable, the cheaper prices will be unsustainable as the cost of living and operating down south would mean prices would have to go up to compensate. After all that effort and investment, there is no guarantee you could be successful.
The key when expanding into different regions is that when doing so you have to do so. There is no point setting up branches in a different area just to be a drain on money and resources. If your going to do it, make sure the option is viable and the local trading conditions are suitable, otherwise a lot of time and money will be wasted.
The fact of the matter is this: there are huge social barriers and differences between the north and south of the country. Differences that are so stark and thorny that it naturally creates two different sub-economies/industries within the whole of the double glazing industry itself.
I don’t think it will remain like this forever though. Some companies with deep pockets may make a dash for opposite ends of the country and start to succeed. Let see…
