PLUMBLINK FEATURE

FEATUR

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P L U M B L I N K

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With soar-away electricity prices biting, solar power is a ‘natural’ for South Africa. But so far consumer response

has been surprisingly lukewarm. All this could change says Seaweed McFarlane, CEO of market leader Plumblink.

S O L A R ?S O F A R S O S L O W

South Africa has abundant sunshine, the perfect solar climate and serial electricity price hikes. A compelling prescription for solar power that can

cut up to 40 percent off a typical domestic electric water heating system?

Eskom certainly thought so, offering cash incentives to customers who install solar water heating panels, and most commentators and sector specialists agreed.

But the reality of public response has been far below expectations. “The take-up has been very disappointing,” says Seaweed McFarlane, CEO of leading national plumbing retailer Plumblink, whose sales campaign was directed towards middle and upper income groups and based on a high-pressure solar heating system it was bringing to the market.

“The rebates are very attractive, but despite extensive marketing not only by us but also a lot of opposition companies, the sales have been very disappointing, travel around the suburbs and you will see very few solar geysers installed in homes. I’ve installed one and am very happy with it.”

But what has taken off is the low-pressure lower cost water solar water heater being installed in low-cost housing, many of which never had hot water systems in the fi rst place. “In some middle and upper class areas there’s been a resistance to putting solar geysers and panels on the roofs of the homes. Some years ago we had rolling back-outs, and until something like this happens it seems the public is unlikely to be pro-active.”

High pressure solar system installation costs range from R15,000 to R25,000– while

low pressure variants are being fi tted for the cost of the rebate – R4,000 – R4,500. Heat pumps - which use less electricity and are cheaper to install - are proving an attractive alternative.

Until recently electricity in South Africa has been relatively cheap and in constant supply. But over the past two years this has changed dramatically. Eskom admits it cannot keep up with growth and demand, and begun a load shedding and power plant construction programme funded by roll-on price increases.

So could Eskom’s latest planned electricity hikes now be the solar power catalyst as customers begin searching for ways to reduce their electricity bills?

“I’ve heard talk that Eskom is considering reducing the rebate - pure speculation at the moment – and there’s also a new levy to fund a R27 billion electricity upgrade with consumers facing the possibility of a 25 percent tariff price rise,” says McFarlane. “Developments like these should encourage more and more people to move to solar. Something needs to happen to wake South Africans to the fact that electricity is going to be in short supply.”

Plumblink are specialists and market leaders in bathroom, kitchen ware and plumbing supplies, operating in this its centenary year from 27 stores strategically situated throughout South Africa. It is the oldest and most reliable name in plumbing in South Africa, and with a wide range of local and imported ceramics, brassware and plumbing supplies says ‘We really do have everything you need.’

Plumblink FEATURE

3www.southafricamag.com

With a growing base of 5,000 loyal

clients we service government, commercial,

industrial, housing and DIY projects,

and offer a service you can

count on

More than 12,500 quality products are sourced from over 150 local and international suppliers offering a broad range including state-of-the-art and exclusive ranges. A VIP loyalty programme gives preferential rates on plumbing purchases, with a two percent rebate on an annual spend of R32,000.00 plus.

“With a growing base of 5,000 loyal clients we service government, commercial, industrial, housing and DIY projects, and offer a service you can count on.” says McFarlane, who plans to double the company’s footprint over the next three years.


Plumblink FEATURE

Plumblink has moved through several forms since it started in the Western Cape in 1911. Five years ago it was acquired by South Africa’s leading private equity manager Ethos, the point at which Seaweed McFarlane arrived as CEO. “Many members of the old staff left the company and opened up in opposition, something of a set back causing us to look again at our expansion plans then on the horizon.

“While the last three years have been pretty stable, this period has coincided with the reduction in house building and construction and right now we are probably on one of

Cnr. Barlow Road & Caveleross Drive, Jupiter Ext, Germiston 1401. Tel.: (+2711) 323-0000. Fax.: (+2711) 323-0466Listed DAW. www.dawnltd.co.za

S A N G I O P I P E

The Dawn Group is a powerhouse in the construction, building

materials and infrastructure sector with a network of strategically

positioned distribution centres nationally, into Africa and

Mauritius.

Dawn prides itself on its manufacturing and wholesale

distribution of leading, quality branded hardware,

sanitaryware, plumbing, kitchen, engineering and civil

products. Optomised and shared logistics and administrative

services enhance the production and distribution efficiency of

The Dawn Group and its subsidiary companies like WHD and

Saffer. This enables them to offer a total package solution with

maximised service efficiency, just-in-time breakbulk and supply-

chain capabilities affording their retail customers the benefit of

optimal working capital management.Distribution and Warehousing Network Limited

REGIONAL LEADER, GLOBAL PARTNER

the biggest ‘lows’ the industry has ever experienced. Even so Plumblink has a growth strategy to reinforce its position as Africa’s sector leader. We have already opened six new stores over the past year and have an expansion plan in place that includes doubling our size over the next three years, increasing turnover and our footprint in South Africa.

“But it still depends on how well the market recovers. We will move cautiously, not out-running market capacity. We have competitors but outside franchise operation, in the main they do not have a national footprint like ourselves.”

New buildings and total refurbishment programmes at airports, hotels, business parks, hospitals, offi ces and similar locations account for 40 percent of an annual turnover - with trade 45 percent and consumer/home owner 15 percent. And while the main trading has been focused on selected large warehouses and showrooms in the major cities, Plumblink has begun opening smaller and more convenient express stores.

“We will make it easy for the plumber, developer and home owner to walk into a specialist supplier closer to home or business. Traffi c is now a major problem in all South Africa and it’s becoming more and more evident that one has to be placed in a convenient spot for customers.

“We see ourselves as being better able to address the market requirements through our distribution centres that will feed smaller stores and get products to customer at his convenience. I believe this will lead the way for us to take a major share of the uptake when it comes.”

In Britain bathrooms and kitchen are seen as the key ‘wow factor’ areas in attracting homebuyers, and McFarlane says this is becoming increasingly the case in South Africa. “The older homes were built 50 years ago with one bathroom and three bedrooms. These days the more affl uent and middle class home has more than one bathroom, often en-suite for each bedroom. Open


Plumblink FEATURE

Franke Kitchen Systems South Africa would like to take this opportunity to congratulate the Plumblink Group on their 100 year anniversary. We consider them to be one of our key distribution partners of our Franke range of products, and wish them great success and growth for the next 100 years!

The Franke Kitchen Systems Group is proud to announce that in 2011 we to celebrate our 100 year anniversary!

Franke Kitchen and Washroom Systems is the world’s leading provider of intelligent systems for both domestic and commercial sectors. Franke boasts a comprehensive range of sinks and mixers. In our commercial sector, we have complete hygiene systems that outshine the rest in functionality, design and durability.

FRANKE KITCHEN SYSTEMS

Call centre 0861 372 [email protected] www.franke.co.za

● www.comap-aquatouch.co.za ● [email protected] ● +2711 462 4504 ● Fax: +2711 462 9130

When it comes to fittings we’ve got every angle covered.

Comap prides itself on service excellence, product solutions to fit any job and quality assurance backed by Comap International. Products supplied include:

Fittings (use the Sudo fitting shot from the top right of the last adver)Piping systemsUnderfloor heating systemsBrassware products and finishes

Comap offers brands such as Sudo, Jevco, BioFloor, Flexseal and Pipe Doctor

Comap is a proud supplier to the Plumblink groupWe’re now located in Northriding, Jhb, why not give us a call?

Jevco qualitycompression

fittings in DZR Brass

from 15mm to 54mm

Sudo quality endfeed fittings

Stocked in Copper, Bronze & Brass

from 15mm to 108mm

Tectite Sprint: High Performance

cost-effectivepush-fit solution Copper & DZR Brass non-demountable

fittingsin 15mm, 22mm & 28mm

Tectite Classic: The demountable push-fit system with a 25-year

guarantee DZR Brass fittings

in 15mm, 22mm & 28mm

Sudo quality Tectite Sprint: Jevco quality

planning is becoming increasingly popular, so yes, the kitchen and bathroom are playing a major part in the valuation of a house.”

Plumblink’s market lead is driven by large stock holding availability at all major centres and a strong national team that can advise on products and product usage. “Many competitors still have old-style stores, a trade counter and warehouse behind. We are moving away from that, bringing the product

to the customer and making it available for him or her to feel and touch, while at the same time having informed and helpful staff on the fl oor who can assist and give advice.”

A strong sense of corporate responsibility and environmental awareness also fl avours Plumblink’s approach to business.

“We believe in contributing to the well-being of society by promoting responsible environmental values and actions, by both ourselves and our clients. We actively assist our clients with the supply of products and services that are not harmful to natural

eco-systems, and promote ‘green’ building principles and energy saving initiatives.

“We have 100 years of trading history and you are assured of getting decent quality products – 95 percent of which are sourced locally and backed by reliable suppliers. Plumblink’s tried and tested reliability is an established brand in itself. Our customers really can and do ‘Count on Us.’”

Meantime as electricity prices soar on a continuing projection, Plumblink is providing South Africans with an opportunity to take advantage of abundant solar energy while making an investment with sustained returns. So watch those Eskom prices and then count the savings. END


Plumblink FEATURE

We will make it easy for

the plumber, developer and homeowner to walk into a

specialist supplier closer to home or

business

South Africa Magazine, Suite 9 and 10, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF

TNT Magazine, 14-15 Child’s Place, Earl’s Court, London, UK. SW5 9RX

ENQUIRIESTelephone: 0044 (0)1603 343267Fax: 0044 (0)1603 283602 [email protected]

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26 Morkels Close Allandale Park Midrand

Postal Address: P.O. Box 3355 Halfway House 1685

Tel: +27 11 6902800Fax: +27 11 8057748Email: [email protected]

www.plumblink.co.za

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