Speedy Hire and B&Q Linked?
I have just written a brief article about B&Q and how over the last year they have seen their sales rise 50% and I mentioned that people these days are doing things for themselves instead of hiring a professional to do it for them.
But how might Speedy Hire and B&Q be linked?
Well my theory is that Speedy and B&Q are complimented goods. This means that products sold at B&Q could directly impact (positively) on the goods hired at Speedy.
This is because people are looking to do more things around the house themselves. Usually these are one off occasions and so it doesn’t make sense in buying equipment so they’ll hire it instead!
Just like consumers, businesses have less ‘cash’ in a recession and so may adapt and hire equipment instead of buying it.
However my theory’s flaw because one could argue that the demand for hire has just simply switched from Businesses (doing painting and decorating) to Consumers doing it themselves, so demand would stay the same.. in theory.
