Toshiba to cut prices
UK – Toshiba have announced that they are to implement a new pricing policy as part of the company’s strategy aimed at doubling sales by 2020
Toshiba Air Conditioning revealed that they were to make significant reductions in UK equipment prices as a result of continuing business efficiency improvements and economies of scale due to growth. The price cuts of up to 16% are effective as of today (1st of June), and form an important part of Toshiba’s strategic goal of doubling air conditioning sales by 2020. The company disclosed that their new pricing policy applies to some of Toshiba’s most popular ranges of splits and VRF air conditioning equipment.
Commenting on today’s announcement, David Dunn, the director and general manager of Toshiba Air Conditioning, said: “We have been working hard for some time to ensure the business is as productive and efficient as possible. I believe we are among the best in class anywhere. This, coupled with increasing equipment volumes sold into the UK, has allowed us to pass on these attractive savings – which in turn will enable customers to be more competitive and win additional work, and so grow their own businesses.”
Mr Dunn continued, saying “This is a virtuous circle for all concerned, and will help us continue to build the momentum towards our own long-term growth objectives.”
The most notable price cuts were to well-known products such as Toshiba’s RAS systems ( which were reduced by up to 16%), Digital Inverter split systems (whose prices have been reduced by up to 12%) and three-phase Super Digital inverter outdoor units which have been reduced by as much as 14%. Other products, including the company’s multi-award winning VRF systems, have also seen their prices cut while associated products – such as some air-to-air heat exchangers – will also benefit from a 9% price reduction.
The company had previously announced its 2020 growth strategy last year and has also revealed plans to support the pricing initiative with the introduction of new products, increased stocking levels, new appointments as well as a major expansion in production capacity, enhancement of warranty terms for trained contractors and a worldwide push on training. As such, Toshiba have also revealed that they are dramatically increasing stocking capacity at their Plymouth facility with a further 44,000sq ft of racking space, which, they claim, will help ensure immediate product availability across their most popular ranges.
Explaining the company’s reasoning behind these strategic decisions, David Dunn said: “There is a saying that ‘the future belongs to those who plan for it.’ I would add – ‘and those who work diligently and unswervingly towards their goals’. We are accelerating our activities on several fronts, to expand our range, further improve logistics, and build on our already highly regarded service to customers. He added: “A part of this, the recent acquisition of CIAT, and it’s positioning alongside the Toshiba offering, is highly significant. It means we now offer a complete range of solutions for all building types, and all applications.“It offers contractors access to a comprehensive range of technology from a single source, streamlining their own supply channels and reducing business costs. We believe that on top of our expanded portfolio and award-winning products, the latest price reductions provide a compelling offer.”