Rpg october'10
- 1. ECONOMIC UPDATE Economic and Market Overview as at October 1st 2010 Gaining a 15% Price Advantage Customers buy when the value of a terms of supply and product/service demand, real ‘uniqueness’ exceeds the price, but of product and industry staff about your products, what creates that differentiators, it is hard to services, how well do they value? argue that reputation, trust know your target market and and the quality of people are how well are they At a recent conference what really make the delivering? research was presented difference and that most None of these are rocket to reveal the top 3 value products/services can be science factors, but as we creating factors in a substituted. In short, would move into what is retailing arena: be customers have to know traditionally the key strategic who you are and what you planning quarter perhaps its 1 Reputation of supplier stand for and see this time to challenge your 86% evidenced consistently. business once again you 2 Trust in the supplier could be moving to a Success requires good 72% slippery slop of a price led marketing and PR and high 3 Knowledgeable sales calibre training; above all it strategy and if you really staff 70% requires strong and could be the best in your Clearly price is also a key imaginative leadership to operating space this is factor in any decision, and recognise that reputation simply margin being thrown on the same speaking really matters and that away for no reason. platform a web based reputation is a business organisation stated that in wide issue to be supported If its time for an audit of selling a used car they had by every person on every where you are versus where established that a 15% price occasion, no exceptions and you want to be, or if you advantage could overcome that the process never ends. would values some tools to the value of a traditional car In an ever competitive help email me today at: sales medium. market, where time and info@rocketperformance.co.uk In essence without a well price pressures face respected reputation, everyone, what is your Best Wishes without real trust and in the business’ reputation and absence of good sales staff, what do you want it to be? it is all about price. Whilst Do your customers trust accepting that there are you, would they advocate Graham Filmer other factors in play in the for you and how Email: price value equation - in knowledgeable are your graham@rocketperformance.co.uk
- 2. ECONOMIC UPDATE Key Economic Data Summary as at 01/10/10 CPI (May) 3.1% Unchanged this month. RPI (May) 4.7% Down from 0.1% from July. Employment Qtr to May 2010 70.7% Up 0.4 on the quarter Unemployment Qtr to May 20107.8% Down 0.1 on the quarter UK Economy Growth But Road GDP Growth/Shrinkage Qtr20 GDP increased by 1.2% in the 2nd Ahead Looks Uncertain (28/09/10) quarter of 2010, unrevised from previous published. GDP in the 2nd quarter of Britain's economy expanded at its 2010 is now 1.7% higher than the 2nd quarter of 2009 fastest pace in nine years in the second quarter of 2010 and growth at the start BoE Base Rate 0.5% As of 05/03/09 (no change this month). of the year was slightly stronger than LIBOR (GBP 3M BBA) 0.73719% Rate continues to rise. previously thought, but analysts predict Crude Oil $76.96 a barrel Prices have risen this month. a tough road ahead. Gold $1185.900 per oz. Prices down this month. The robust expansion in the three months to June was bolstered by National House Price Index July 2010 consumers using up their savings and (source Lloyds Banking Group as at 08/09/10) a big rise in government spending ahead of a severe austerity drive which is likely Average House Price £167,953 to hamper the economic recovery. The Monthly Change (0.2%) Office for National Statistics said the economy grew 1.2 percent in the second Average Change 4.6% quarter, confirming an earlier estimate and in line with economists' forecasts. Personal Loan Rates (as of 28/09/10) - Rates First quarter growth was revised up to sourced from lenders websites on 28/09/10 - Based upon £5K (unless 0.4 percent from 0.3 percent. noted) over 36 months ex insurance and subject to underwriting Lender APR Notes Sainsbury's Finance 8.7% The rate has been reduced until 07/10/10 IMF Backs UK Deficit Action Plan Tesco Personal Finance 8.7% New lower rate (27/09/10) Santander UK Min advance £7.5k existing customers only 8.9% The International Monetary Fund (IMF) Post Office 8.9% No change this month has said the UK economy is "on the Nat West/RBS No change NW & RBS customers only 12.9% mend" and has backed the coalition M&S 12.9% Borrowers have to be a UK resident aged 30 government's plans to cut spending. or over or a house owner The IMF described the deficit reduction Halifax 18.9% New lower rate halifax customers only plan as "essential" in supporting the HSBC (Flexi loan) 17.9% HSBC Current account holders only UK's debt position, and said it Lloyds TSB n/a All rates subject to underwiting no longer published "supported a balanced recovery". Barclays Bank 10.9% Barclays customers only on line application Clydesdale / Yorkshire Bank 13.9% No change this month The body also said that the UK economy AA Personal Loans 8.9% to 15.3% Loans available from £7.5k to £14.95k would continue to recover at a moderate pace while the cuts were implemented. Co-Op Bank 12.9% No change The IMF predicted growth of 2% in 2011, rising to 2.5% in the medium term. That marks a small revision downwards from Mortgage Costs - Standard Variable an earlier forecast of 2.1% growth in Rates (SVR) (as of 28/09/10) 2011 Rates sourced from www.lovemoney and lenders websites on 28/09/10 - rates may be subject to value levels and underwriting. Lender SVR Comments Retail sales surge at fastest pace or equivalent in 6 years – CBI (28/09/10) Halifax 3.5% Retail sales unexpectedly shot up in Standard Mortgage Rate (SMR) is 3.99% however Nationwide customers with Nationwide BS 3.99% (SMR) 2.5% (BMR) deals reserved on or before 29 April 2009 will revert to the variable Base Mortgage September at their fastest pace in six Rate (BMR) which is currently 2.5% years, a survey showed on Tuesday, Santander UK 4.24% as consumers splashed out on new Only applies to current customers at the natural end of mortgage applied for Lloyds TSB/C&G 2.5% before 01/06/10 clothes, shoes and furniture. 3.99% For customers applying for a mortgage after 01/06/10 Northern Rock 4.79% The loyalty rate is 4.54% The CBI's monthly distributive trades survey's reported sales balance jumped Barclays (Woolwich) 2.49% to +49 in September from +35 in August, RBS 4.00% the highest reading since May 2004. HSBC 3.94% Analysts had forecast +25.
- 3. ECONOMIC UPDATE Property News (source Lloyds Banking Group 08/08/10) House prices increased by 0.2% in August. This was the second successive monthly increase following a 0.7% rise in July. House prices in August were 4.6% higher on an annual basis as measured by the average for the latest three months against the same period a year earlier. This was slightly below the 4.9% increase in July, continuing the recent downward trend and compares with In Marketing, Public a high of 6.9% in May. Relations, Training & Development Prices in July were marginally lower (-0.5%) than at the end of 2009. and Corporate The current average house price of £167,953 is 9% above its April Development 2009 low, but remains 16% below its August 2007 peak. Our three distinct business disciplines share one Housing market activity broadly stable. Bank of England industry- common goal - to give our wide figures show that the number of mortgages approved to finance clients a performance house purchase in the three months to July – a leading indicator of edge completed house sales – were slightly higher (1%) than in the After many years in corporate business previous quarter, on a seasonally adjusted basis. The number of leadership, we struggled to approvals has been remarkably stable this year, keeping within a find the type of results range of 46,000-50,000 per month. In total, the number of approvals focused, entrepreneurial during January to July was 9% higher than in the same period last people who could make the type of positive contributions year. we were looking for to drive The combination of lower house prices compared with mid 2007 our businesses forward. People who were and interest rate reductions has created a significant improvement knowledgeable, energetic, in affordability for those buyers wanting to take their first steps onto results focused and fun to the property ladder. Indeed, the proportion of a potential new first- work with, people we could time buyer's disposable earnings devoted to mortgage payments trust as friends. has almost halved from a peak of 50% in mid 2007 to 28% - below To create such a support the 34% average over the past 25 years. Improving home affordability service was our goal and now seven years on we has helped to boost the number of first-time buyers, which was 28% continue to grow remaining higher in the first half of 2010 compared with the same period last true to this original vision. year – 94,600 against 74,000 - according to the latest CML figures. Across the UK, Europe and beyond we are proud to be making a valued OFT Issues Damming Report on Debt Management Companies (28/09/10 contribution to the businesses and above all The Office of Fair Trading has ordered 129 debt management firms to clean up their people with whom we work. act within three months or face losing their licences. From training and An 11 month review of the sector resulted in a damning report highlighting widespread development, through public problems including misleading advertising and poor advice to those in debt. relations and marketing and Three-quarters of those firms checked by the OFT charged their fees at the start of the on to major corporate process. This, the OFT said, would minimise the risks faced by the firms while not development we are dealing immediately with consumers' difficulties. delighted to share our Standards should be higher, the OFT said, and it highlighted issues including: expertise, energy and results focus. Misleading advertising by suggesting, wrongly, that services were free We love what we do and our Frontline advisers offering poor advice passion comes through in Little awareness among customers that they could take complaints about firms to everything we do. an independent ombudsman "We Bring Focus to In the worst cases, the use of lookalike names to appear to be charitable or Deliver Results" government organisations The Rocket Performance Group Rocket Marketing Associates Rocket Training & Development Rocket Corporate Development Lanark, Scotland Ross-on-Wye Beaconsfield Email: info@rocketperformance.co.uk www.rocketperformance.co.uk All Right Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the publisher Rocket Performance Group. This report has been created to provide a summary overview of the market environment for property development. All information is believed to be correct at the time of publication, in so far as it summarises the topics at a very high level it cannot be guaranteed. Please note that all information is provided in good faith, whose accuracy we are not always in a position to guarantee. As such Rocket Performance Group can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect. © Rocket Performance Group 2010