As You May Have Heard

On Thursday of last week independent Pittsburgh Paints retailers received an email from representatives at that company announcing a 5.8% price increase for the brand effective August 15th. 

Hardly a scoop at the time those emails went out.

Because the reps were beaten to the punch when a tipster shared a copy of the price increase dated two-days hence which I posted on LinkedIn where it went viral by our industry's standards likely being viewed by every Pittsburgh dealer with an internet connection.   

THE increase was larger than the circumstances dictate, exposing a money grab which private equity is known for. 

And it’s not only dealers who Pittsburgh CEO Brian Carson is flipping over for their dimes painters in their stores are suffering that same fate. Because effective July 1^st Pittsburgh raised prices 9% in their stores, 50% higher than the increase Sherwin-Williams took in January, milking the cow before it becomes a burger.

THE actions of an executive who does not plan to be around long enough to worry about his reputation.

THE increase to dealers was more than double that of the most recent increase from Benjamin Moore, one which left the price of Regal, floor paints and all high performance coatings unchanged.

Likely evidence of private equity's greed. 

With word of the price increase spreading faster than a dry film forms on a pure acrylic resin Pittsburgh reps were aware when they sent out their emails that the word was already out. Like this rep who began their email, “As you may have already heard” without mentioning who they might have heard that from.

As if there was any doubt.

While all that went on Brian Carson kept cutting, this time closing the plant and distribution center in Delta, British Columbia.  The action cost 95 people their jobs including sales reps and those in the plant, distribution center and offices in that location. 

With more cuts still to come.   

Gassenheimer Lite

Last week was the first in many when I did not receive a notification that Brian Carson was reading my blog, leaving me to wonder if the affair is over or if he just subscribed to a VPN to obfuscate his presence?  Perhaps recognizing this was not his safe space, because acquiring Pittsburgh did not make him a paint geek.

Anymore than it was for Charles Gassenheimer, the last to use paint to wash down their avarice.    

Expect Carson to keep cutting as if his bonus depending on it, likely closing unprofitable stores before the year’s end and perhaps cutting further into his big box division which is down to two customers. 

And one of them is Walmart!

That Carson and his ilk can act with such impunity is a perversion of capitalism which Americans should not tolerate. An outcome of our distrust of government which leaves men like Carson and Gassenheimer to self-report when they've taken too much.

In Europe this is not the case, firms such as the Flacks Group and American Industrial Partners are heavily regulated, ensuring that at-least worker’s rights are protected as they chase down their next billion.

The only remaining American Dream.