News from "Down Under.'
Page 18
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Melbourne's Motorbuses. Benz in Adelaide. American and British Methods Contrasted.
The steady development of the commercial motor in the Antipodes continues, although recent financial depression has had a very marked effect. on sales as far as the small buyer is concerned. The situation ha.; been saved by sales for buses and mail work, which between them have accounted for the purchase of 100 machines during the last year.
The home of the bus movement has been Melbourne, where several companies have been formed, and after a few weeks of competition, which might easily have become cut-throat, entered into working arrangements to fight the common enemy—the tram. Particular interest attaches to the Melbourne fight, as the trams are cable, travelling at 1'4 miles per hour, and the company's lease expiring in 1916, the Council proposes to electrify the system. The question for bus manufacturers is : Can that be prevented in the interests of the motorbus? Personally, I think it can, but tramway and electric interests are always strong, and I think that those fighting the question on the spot require assistance both personal and of indisputable comparative figures. Melbourne without trams ran use 300 buses, and other paces more. Is it worth the while of those manufacturers interested to send a competent man to educate and assist sympathetically ? Again I think it is. Mr. Stevens arrived in Melbourne quite recently, and he will do some good, but from the broad standpoint he is interested in one make, and during the time he can afford to stay he is only likely to convince those willing or anxious to be convinced.
Benz Buses for Adelaide.
The buses were to be put on the streets of Adelaide when I was there some three weeks ago. Benz, I am told, have already been selected, and it seems that they will form the nucleus of a very useful little fleet.
The great question as to whether the buses really pay cannot yet be dealt with. In Melbourne they are popular, and whilst those handling the company (I mean the directors) are novices, they are grappling the problem before them intelligently, ably assisted by Mr. F. Massy Burnside. I am assured that the profits are great, but it still remains to be seen whether adequate provision has been made for contingencies.
Speaking of Benz cars, I have been very surprised, like many others, to see the nhenomenal rapidity with which they have established themselves on the Australian market. Only recently I paid a visit to the proprietor of one of the country motor mail services, and hetold me that he had purchased a Benz bus, and, if satisfactory, he would buy more.
A Flourishing Passenger-Mail Service in Tasmania.
The fleet of cars running the passenger mail service out of Hobart to the Huon is being increased. Messrs. Webster, Rometch and Duncan, of that town, make big profits out of it, and are having to put more and more cars on the road. They are good people for sellers to keep in touch with, as they will rarely be out of the market for cars of one sort or another, their tourist business being immense and growing.
I have already said that the single sales business is very flat. Buyers say that motors du not pay, and talk of going back to horses. That, of course, is an inevitable phase of the development of the industry, but there are some peculiar aspects of this particular case which I am convinced may well end in far-reaching results as far as British manufacturers are concerned. So much has the matter interested me that I have devoted considerable time to inquiring into it
D4 and obtaining opinions. Allowance has to be made for early mistakes in selling, ignorance of buyers and drivers, and the awful state of roads in various parts of Australia, and the financial depression has been an excellent excuse to hang fire and do nothing. The fact remains, however, that several stores have abandoned their 15 cwt. to two-ton vans in favour of touring cars with box-van bodies and pneumatic tires.
Agents Complaints of their Difficulties.
On the other hand, every man with haulage to do direct or indirect in the country should have a motor lorry. He can afford it. The money is there, or can easily be found, Sooner or later he will have one, but he has not, and he is not buying. Why I Because he gets no demonstrations : he is not being educated ; he thinks he does not get fair treatment if anything happens ; he cannot get spare parts and he cannot get satisfaction. What wretches the agents must be ! This phase I have discussed with several in various parts of that enormous land, and what is the reply ? It does not pay. Last year we lost money on our cemmercial-motor business, etc. We send Inca into the country to demonstrate at enormous expense ; we have to buy and stock cars and pay cash at the factory. Money has to be ready for the dutiable parts, and we may be left with a few cars on our hands for a quite indefinite period eating their heads off. We have to lock up heavy sums of capital in spare parts. When breakages take place, for the sake of the rest of our business we have to make good and spend more money in sending the broken part carriage paid to the factory, where the almost invariable reply is, We accept no liability. Result—the agent pays every time and all the time, and at the end of the period of guarantee finds that he has sold the ear for .250 or 60 less than he paid for it. Bigger fool he. Yes ; he admits it, drops the agency, leaving the manufacturer with the gratuitous work he has done and the benefit therefrom. He seeks something else—the American commercial vehicle, which is introduced by the factory representative, who goes round the length and breadth of the country giving initial demonstrations, arranges about necessary renewals and consignment stocks of spare parts, advertising, etc. Take one case of a light lorry, the agent has to push them, but he gets £100 profit on each, the selling price being fixed, and he being safeguarded against loss through claims arising out of faults of manufacture.
When I am in England I shall be asked why our sales have fallen off to such an extent. in Australia—in some eases 90 per cent. This is the answer, and in another year or 18 months of the same conditions the sales will have dropped to nothing, and the British manufacturer will be unable to obtain representatives
in Australia. The difference between British and American methods may be stated shortly : the former sells to his agent, the latter through him.
American Business-getting Methods.
The next two years is entirely with the American commercial vehicle under three tons. After that well, quality, cost, conditions will speak one way or the other. I can suggest inexpensive ways of remedying the present state of affairs, and those interested can obtain those views from the Editor of this journal. but they do not include sending representatives on flying trips to spend a week-end in Melbourne and a day in Sydney, and to eat a good dinner respectively at Menzies' and the Australia.