Flexibility is the secret
Page 32
Page 33
If you've noticed an error in this article please click here to report it so we can fix it.
)DAY EUROHIRE Vehicle kenIs Ltd, based at Long Acre, Biringha m, runs nearly 400 hides — from 38-tonnes and -ton refrigerated vehicles to a ir number of cars. And the rnpany started only nine years o.
This tremendous rate of owth is a sign of the potential this field, but it is a potential lich needs an energetic man make it tick, and in this case ! is Simon Kerr, the majority vner.
Eurohire contacted CM after e journal appealed for "sucss stories" contrary to the !neral situation. It was virtually 'oregone conclusion that these ould be highly specialised ms that had found a niche in e market rather than general luliers.
Simon is a relaxed, modern )ss. The word "flexibility" ofn crops up in his conversation. ilking about the future he said: "Of course, in our policy we must remain flexible."
All his vehicles are Britishmade. All sport the Union Jack. But he might buy something foreign one day. "We must stay flexible," he said.
He works from home. Most people in the firm seem to call him Simon. He aims to see that the frustrations his colleagues have experienced in large companies don't happen in his. All divisional managers meet him at his home — on Sundays, in order to avoid interrupting the work.
While he "won't buy foreign", it is his managers who decide what must be bought. "It may be that I have to say 'I don't go along with a decision, but give it a try'," he told me. "It's very difficult to do this because we may lose money — but if we do, we all lose, because we have profitsharing."
Soon after I met Simon he told me: "We try to treat our suppliers as well as our customers." Later we called on his bodybuilder, W. Thomas, of Tipton, for a friendly business visit.
I discovered that his depots vary according to area. If the district is not too neat and tidy, then the depot is not all bright paintwork. But a run-down look is not preferred.
Simon took a risk in 1972 when, an ex-engineer and salesman, he sold up his home, borrowed £500 from the bank, left the Kenning Motor Group and put all his money into the hire-purchase of ten Bedford' vans, secured a contract with the Midlands Electricity Board, and advertised in the Yellow Pages and the local press.
He employed no drivers but would make a delivery by special request. The staff was himself and one other man.
Then came one day with virtually no business and hire purchase to pay, but trade picked up. Six months later he had 25 vehicles, including two or three Fords. The remainder were Bedfords, a firm which, he said , has given him tremendous support — not just from the dealers but the company itself. Why are Bedfords so good "They are reliable and cheap t run, but it is the overall packag that wins for this company," h said. "And they always corn rnand high prices at auctior when sold, with a full year': MoT," he added. "Many an bought by our competitors, be that doesn't bother us. They ma) be mechanically sound, but the) don't have the brand-new lool we require."
On August 15, 1972, the flee — ten HA vans, a minibus and 1' Vauxhall cars — was idle! " don't know what happened," hi recalled, "but three of us, by ou own efforts and advertising took £250 on October 1 am since then we have never lookec back." Next year he bought hi: first three-ton boxvan and Jropside.
A small depot was acquired in )Idbury in 1974, followed by Sheffield in 1977; Nottingham in 1979; Bristol in 1980 — and two -nore this year in Wolverhamp:on and Leeds, which has a fleet ncluding 20 trailers. The first Mandel quarter in 1980 was as 3ood as the best with the :urnover at £400,000, just before he recession hit.
In the past 12 months, periods )f hire have in most cases reiuced from weekly or monthly a couple of days.
This has meant a fall in wages. Nhereas someone in 1979 on :5,000 a year would have colected an extra £3,500 in profits )onus, in 1980 when possibly on basic £5,500 to £6,000, the ionus dropped to around 1,800.
The, company's aim now is to rganise into five divisions each vith five depots. Simon himself poks after the Midlands diviion, with Mick Devlin manager if Birmingham, Bernard itephens at Oldbury, John Abralams at Wolverhampton and No other locations yet to be stablished. Ricky Kumar manges a sub depot at Handsworth.
Tony Reeve looks after the Jorthern division with Kevin ordan at Leeds. Paul Sheff at ,heffield, and. Jon Tate at Notngham. John Leechmere is in harge of the Western division, o far with one depot, at Bristol, nder Sid Smith.
Southern and Eastern diviions have yet to be established, nd there are no plans for ScotInd "unless the right man Dmes along." The possibility of London depot is similarly ending. However, the firm has a financial director in Mark Murray.
This, then, is the plan for the next five to ten years. Fifty per cent of the managers have come up within the organisation. "We want to be flexible in how we expand," said Simon.
His rates, he said, are put together from cost rather than what the market will stand. From his brochure I see that a customer can hire a Bedford TM 3800 tractive unit or Bedford TL 1630 fridge van for £70 daily (no mileage charge) or £305 weekly, or,say, a Ford Custom minibus for £23 daily, £100 weekly. Lower rates can be quoted with 100 miles daily included.
Long-standing customers get around five per cent discount, because of reduced risk.
And the fleet utilisation rate is around 75 per cent he said — 15 per cent below what they would like but at a level that would make many firms happy.
He told me that Eurohire as a title has no European significance; there is no ambition to move to the Continent, though they pride themselves that the refrigerated vehicles, for instance, meet Continental regulations' requirements and vehicles can be taken abroad.
"As a significant part of the industry," he said, Eurohire has good contacts with the Road Haulage Association. It does not belong to the British Vehicle Rental and Leasing Association, since this organisation, with its strength in leasing and car hire, he considers does not represent firms like Eurohire.
"I have an idea that a vehicle manufacturer may set something up for hire firms but I can't say anything more at the moment," he added.
On rates of pay, he said that any employee, from a cleaner/ checker up, if he finds he is not getting the market rate can ask his boss to investigate for corresponding adjustment. "We have health and pension schemes; if we want the best we must eliminate the frustrations that can come from home."
He hopes that customers' road frustrations are alleviated by radio — anything over 30cwt has a set.