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A positive example

4th September 1982
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Page 20, 4th September 1982 — A positive example
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Which of the following most accurately describes the problem?

A commitment to customer service has helped this new Mercedes-Benz dealer ride the recession. Mike Rutherford reports

I HAVE a feeling that if more companies had the same positive attitude as Euro Commercials (South Wales) Ltd of Cardiff, the recession might not be so difficult to live with.

Euro is a Mercedes-Benz cornmercial vehicle dealer — a dealership that opened just over two years ago. The obvious question is: why enter a shaky market in such a depressed area at the height of one of the worst economic depressions?

Euro's managing director, David Salway, one of the men who formed the company, says that having conceived the idea of a Mercedes dealership when there was a relatively healthy economic climate there was a commitment and determination to get the venture off the ground.

"We decided that if anyone was going to be a force in the market place it would be Mercedes-Benz. A decision to go forward was made, and there was a lot of confidence for the future. We don't live for today," says David.

That confidence, commitment and long-term thinking paid off for Euro. After 18 months at its original site at Tremorfa, Cardiff the company is now firmly established a mile away from Tremorfa at East Tyndall Street.

One of the reasons which prompted the move to the impressive new premises was the poor conditions at the old site. The workshop was an old aircraft hangar — water would leak through the roof and freeze on the floor during the winter — and Dave realised that if he was going to keep his well-regarded staff, he would have to move.

"We decided — you're either in business or you're not. You can't play around at it."

He firmly believes that people are a vitally important part of any business and says that it is therefore essential that the staff's conditions are good. The better the conditions, the better the workforce and the longer they are likely to stay, says David.

It is safe to say that that attitude towards staff has been rewarded for Euro has yet to lose one of its fitters. Apart from being paid above the going rate, David's workforce now enjoy shower facilities and a smart kitchen/diner/rest room at their new workplace.

The new purpose-built facility at East Tyndall Street covers 3,000sqm and has a workshop area of 557sqm (6,000sqft). The workshop is capable of handling up to ten vehicles (vans and lorries) at any one time and there is ample parking space for all types of vehicles, with set parking facilities for customers. Access is excellent.

The new premises also have an electronic security system in addition to regular visits from a security guard.

There are 11m and 22m pits in the workshop, a roller brake tester, brake drum turning machine and a host of other modern equipment. The electric up-and-over double-glazed doors have vision panels to improve interior illumination. I did not study the roof but I doubt if there is any chance of it leaking.

The premises have been built to a high standard, similar in style to what may be seen on the Continent. The tiled floor is cleaned daily by a scrubbing machine. In ten years time the floor will still look as good and will encourage staff to play their part in keeping the place clean, says David.

"We want to get away from the muck and grease image of the motor trade. It's a dirty job so let's make it as clean as we possibly can."

Euro Commercials is attempting to move away from the often grubby image that the trade has. But is the 000,000 invested in the plush new company base money well spent, I asked David? He admits that the premises could be a little more nodest, but insists that the acilities are far from plush.

"It's not plush, it's functional," le says.

"And its all part of the packige. We've got to do the job ight, that comes first. And ve've got to give the right ser(ice. These premises are part of hat service."

David believes that it is exremely important to present the ight image to customers. The 'functional" new premises and he clean workshop are, he lopes, a reflection of the corn'any's attitude.

The main emphasis is on noviding a good service to cusomers. David likes to think that f a present or potential client risks or phones Euro, he will eave with the right answers rem the right person.

"What is very important is per;onal attention. Any customer an walk into my office or ring no at home on a Sunday." And in an emergency, David will open up Euro's parts department on a Sunday to help out a regular customer who is in need of an urgent part. How many managing directors offer that kind of individual attention?

If Euro can avoid keeping a vehicle off the road on a busy week day, it will do so. Saturday mornings for the company is hectic with a lot of vehicle servicing being carried out from as early as 6am (some vehicles are brought in late on Fridays so that an early start on them can be made).

If a job cannot be completed by midday on a Saturday when the workshop officially closes, fitters will stay on to finish the work and will even come back on a Sunday if necessary. The company is aiming to extend its opening hours further, and in future wants to offer a seven-day week, two-shift-per-day timetable operating until midnight, instead of the present opening times of 8.30 am to 6 pm (plus Saturday mornings).

"Our customers realise that we know their problems," says David.

I got the impression when talking to him that his determination to provide an efficient, flexible service for his customers is the result of his own past experience. I was right.

"I'm basically a truck salesman," he says, "and the worse thing a salesman can experience is to do a good sales job and be let down by the backup that the customer receives. I try to get this point over to the people who work here."

Similar views are held by one of David's two partners, Nick Williams.

"There's 100 per cent commitment from the top downwards. There have been a lot of growing pains but we've got to make sure that the customer doesn't feel them — he's still got to be looked after."

Those who are not committed — no matter how minor their role — will never survive in a goahead firm like Euro, says Nick. Like David, he sees Euro Commercials very much as a long term venture and is not frightened by the fact that the company is yet to make significant profits.

I asked David if most of his maintenance work is carried out on a contract basis.

"No, but it will move that way because we're starting to sell the Mercedes guaranteed-cost maintenance scheme. We've had a moderate response so far, so it's up to us to sell it."

(The Mercedes maintenance and repair contract scheme gives operators the chance to pay an agreed amount every month which covers the service, repair and maintenance costs on a vehicle throughout the life of the contract. The monthly charge is based on the type of vehicle, type of operation, annual mileage and the duration of the contract.) But as most of its customers are regulars, Euro is in the process of installing a computerised follow-up system so that operators cannot forget about their vehicles' services and MOTs — even if they want to.

The company stocks about £60,000 worth of parts in its customised and seemingly well-organised parts warehouse. Parts manager, Terry Hughes, has no financial restrictions and his brief is to "stock the parts to give the right service." The problems for Euro where parts are concerned is measuring the demand accurately.

It does not get caught out too often, but if a part is not in stock and is needed urgently a telex to Mercedes-Benz (United Kingdom) at Hayes results in the part being delivered to Euro the following day. The proximity of both companies to the M4 can be thanked largely for that.

With parts, Euro is "overstocked relative to turnover. The only way to do it," according to David Salway.

New vehicle safes at Eta° Commercials appear to be going well, with the target for 1982 set by Mercedes-Benz surpassed during the first seven months of the year. But while Euro's percentage share of the truck market is above Mercedes' own

national average figure, David is far from content.

"I don't necessarily think that our figures are good, because Mercedes should be getting more sales. Their national average should be higher," he says.

"When we opened, Mercedes were not on the shopping list in this part of world [the nearest Mercedes dealer is 40 miles away at Swansea]. It was important to get some out at the start and now we are getting repeat orders."

What is Euro's biggest selling point — the product or the back up service?

"I think the service. The reaction of the supplier to the customer," says David.

"Having said that, the product is the best. If I'm asked what are Mercedes like, I say go and ask one of our customers. That way we'll progress."

Coincidentally, I had spoken to one of Euro's customers before my meeting with David Salway. Catnic-Components Ltd has recently bought a couple of 24-tonners from Euro which have so far been more than adequate. But what does Ken Hall, Catnic's transport manager, think about Euro?

"If it can maintain the service it's shown to us it's got a great future down there. I'm very impressed," says Ken.

Euro always tries to have a few vehicles ready for the road because, as David says, people often want a vehicle "yesterday", Tractive units with fifthwheel couplings are always available but despite this Euro is not tempted to hire vehicles because it would be competing with its own customers.

Euro Commercials has a team of five fitters in addition to a service manager, Cyril Williams, and a service foreman. All fitters have received training from Mercedes and the two newly recruited apprentices are young enough to be trained the Euro way. The company employs a total of 23 in all including a vehicle sales team.

Although Euro Commercials concentrates mainly on Mercedes it is looking for more nonfranchise work.

"If we give them the right sort of service we might sell them a Mercedes next time," reckons Dave.

Mercedes operator or not, if you have any doubts about the claims that Euro Commercials is making get in touch and see what you think.

"We tend to jump when customers ring us," says David Salway.


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