1917: The Agent's Year.—Article H.
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y The Editor.
We gather that our article of last week has been the subject of not inconsiderable discussion throughout the industry ;-it has been specifically examined in detail by members of the committee of the Motor Trade Association.
We have no doubt that there will be at least two schools, as in past years, in both the manufacturing and agency branches, concerning the vexed question of "Agents or no agents? " There are, of course, not a few agents who consider; by reason of past unfortunate experiences, that there is nothing for them in the sale of British-made commercial motors. That is the extreme view of some, we know. We trust that the new circumstances which have arisen will cause them without exception to alter that conclusion, as surely as they have already caused some of the leading manufacturers of British commercial motors to realize that the old order changeth.
Agents generally have, since this controversy went through its last pre-war phase, very considerably benefited by transactions on the purely-commercial side of motoring_ They have made money out of Ford vans more particularly, as may be judged from the widespread use of theeie vehicles by tradesmen all over the country. The deferred-payment system of acquirement has obviously helped to bring about this result, but we are immediately concerned with the encouraging influence of growing use upon those agents who are now able to use this initial success as a stepping-stone to something larger. We believe that the ratios of profit which are open to them, provided they take appropriate steps to equip themselves to handle the sale of commercial motors of larger sizes, are ceetain to be as goad, compared with profits on Ford and similar vans, as their ratios have in many cases been between profits on motorcars and their one-time profits on ordinary bicycles. That means much. It presages new scales of both living and turn-over. We here refer to those agents who started in the cycle trade, and developed from that into the motor business. Agents with that record behind them are to be reckoned amongst the most successful in the country, as names which we might quote readily prove.
The extension of the agent's profit-earning capacity, for it to be comparable with the growth from cycle profits to motorcar profits, must be based upon the sound laying of plans, and a thorough preparedness to give service. Thekey to the future is found in the word "service." The heavy-motor agent, who appeals alike to the manufacturer and the commercial buyer, is ti-e man who has (1) the right class of premises, (2) a competent mechanical staff, (3) a wellselected stock o,f spare and replacement parts, and (4) the financial resources to enter into maintenance and running contracts, if required. More than half the agents in the country at the present time fail to comply with the first of these conditions, seeing that
the average motor lorry or large motorvan cannot be accommodated by them, and that must be changed, if the larger business is to be embraced. The second point is one with which we know it is now very difficult to comply, except in prospect, but the determination to have the staff must be there. Point number three should not involve the agent in financial outlay, except on a percentage-cover system in the nature of a floating deposit, with monthly or quarterly settlements. Point number four is a big inducement to many a tradesman; or other would-be user of a commercial motor, seeing that so many men prefer to pay a little more in order to be relieved of uncertainties which they cannot properly assess or understand, no matter bow well they may know their own particular businesses. The well-equipped and resourceful agent can relieve such users of the uncertainties, at a profit to himself, thus giving satisfaction on both sides. There are two other problems which will affect "The Agent's Year," with which we may well deal now, although not at length. ' . We refer to the current practice of the petrol-importing companies in supplying direct to commercial consumers, and to the method by which returned war-used lorries are to be absorbed into civilian service.
The agent should make a bold bid to be the actual purchaser of petrol. He will be the better placed to secure a change of practice in this regard the more he undertakes maintenance and running contracts. We are also of opinion that it is expedient for the agent to have the whole of the petrol business passed through his hands, in any event, in those cases where the annual consumption is not above a certain volume per annum. We believe that a conference on the position of the agent in relation to petrol for commercial users might with advantage be held at no distant date. We are prepared to help in the matter. As to war-returned chassis, the scheme for the handling of which will have to be formulated during the year 1917, we hope that the agent will be on the alert to ensure his being given a place in the scheme, for there is every reason to conclude that, whilst safeguarding the interests of the tax-payer as regards prices to be obtained on sale by the Government, manufacturing and using interests can be much assisted by the co-operation of a considered scheme of agency, which agency must not fail to take into account the existing owners in all parts of the country of each particular make and model. Here, again, we consider that there will shortly be occasion for some thing in the nature of a conference. Finally, for the present, we wish to remind established motor agents that they will be confronted by two alternatives if they do not prepare. We named them a week ago. They are the appointment of new classes of commercial agents by the manufacturers, and the opening of manufacturers staff and branch d epots