Omega Plc CEO Simon Barber and sales director James Bishton explain how a focus on value for money kitchens, and enhanced customer service, will drive sales through retail and contract
Having celebrated its 25th anniversary with a £20million investment in production and stockholding capacity, Yorkshire-based kitchen manufacturer Omega Plc is gearing up for further growth.
It has already extended its £1million showroom, which boasts 60 displays and claimed by the company to be “the largest, professional business-to-business display area in the UK.”
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So, it may be surprising to find the company doesn’t have ambitions to be the largest kitchen manufacturer in the UK.
However, the company does plan to double its £50million turnover by more than doubling the 18,000 kitchens it sells each year to 43,000 by 2024.
CEO of Omega Plc Simon Barber explains: “We are ambitious for growth. We are constantly laying down capacity but it’s about dealing with the right people. We want to be the best; we don’t want to be the biggest.”
Developing partnerships
He is also keen to point out the importance of developing long-term relationships, from suppliers through to customers, which have ensured good stock availability even during the pandemic.
Sales director James Bishton explains these partnerships have also helped the company enhance its customer service proposition commenting: “On Time In Full (OTIF) is now a given and an expectation. We now work on right first time which encompasses a quality measure to our performance.”
The company also offers a “30-day no quibble, free-of-charge replacement”, should a remedial be required.
These are offered next day on stocked items, 48 hours if it’s got to be drilled or 96 hours if got to be painted: “That is industry leading by well over a week and a half for painted items”, says Bishton.
He adds: “So if our customers encounter a damage, they don’t have to buy another item off us, get a credit back and collect the original and have it shipped up here where we inspect it. We just change it.
“That costs us, if we don’t get it right first time. So, a lot of retailers are buying into that efficiency.”
The success can be highlighted through the number of new customers joining the company and going through training at its inhouse Academy.
Bishton says: “Typically we won’t run a course unless there’s a minimum of 10 people booked. We’ll run 24 ‘Introductions to Omega’ courses this year and 12 focused on in depth product knowledge.”
However, to ensure the company is maintaining its standards, Omega measures customer service, and quality and will reward staff across the organisation with a bonus.
Simon Barber adds: “We measure it on a weekly basis and everybody in the business can earn on that. Everybody contributes to quality and service, so everyone can earn on it.”
He adds: “There’s a family feel to the business and as we grow, we don’t want to lose that. Everybody gets to share in the success, because they create it. We’ve got quite a collaborative approach to business.”
Value for money
The next step of growing the business, following its largest-ever product launch in 2021, Omega has introduced furniture targeted more at Group 1 level price to offer more value and volume products.
Simon Barber explains: “We will be moving some of the new launch focus away from the higher-end painted ranges towards stock ranges, which we hope will allow our customers to tap into the market at all levels and not just the premium level.”
The launch includes 10 doors, four of which are slab designs – with two concrete and two woodgrain effects all made from 100% recycled material. These are joined by a Super Matt Jet Black, adding to its existing five colours in Super Matt.
A skinny frame Sovereign foil Shaker door is available from stock in Limestone or Indigo Blue, with Light Grey and Graphite to be added as finishes in July, or as paint to order.
In addition, four painted colours of Cove Blue, Artic White, Spitfire Blue and Botanical Green have been added to its 22-strong palette.
The launch is completed by eight handles in brushed and matt black, bronze and textured graphite finishes.
Contract opportunity
With 400 retailers in the UK – selling across its four brands of Sheraton, Mackintosh, English Rose and Chippendale – Simon Barber believes there are still geographical areas that could be explored to expand its retail network: “There’s an opportunity in improving and increasing the geographical spread where we have gaps.”
However, he also points to increasing sales through contracts: “We’re currently enjoying and expecting to continue growing in our core independent retail. But the contract market is an area that we’ve identified for some significant growth.
“I’m expecting to double the number of kitchens sold into contracts this year, versus last year, and continue that strong growth.
“We are predominately a retail business, but I can see over the next three years, it may become a more even split in sales between retail and contract kitchens.”
Pricing challenges
Focusing on stocking all ranges in Yorkshire also alleviates immediate challenges of volatile pricing in the supply chain, predominately though energy and transport and raw materials.
Simon Barber comments: “We’re fortunate that we don’t have to react immediately, as we’ve got stock which we’ve brought at previous prices. We are in a position to be able to absorb some of those price increases.”
And while he can’t guarantee price increases won’t be required in 2022, Barber adds if the company does have to increase prices “we will try and give a period of forward pricing stability again”.
Whether increasing kitchen sales through retail or contract, particularly in this ever-changing climate, Omega is concentrated on controlled growth.
“We’re ambitious but we want to do it steadily, so that we maintain the high service standards we’ve set for ourselves and our customers”, concludes Barber.