Reduce to survive
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"WHEN THE recession arrived in 1980, many companies attempted to sell themselves out of trouble with disastrous effects".
In presenting his company's marketing concept for economic survival Patrick Faircliffe, Godfrey Holmes managing director, told conference delegates of his company's decision to hold a reduced but still profitable level during that first difficult year.
"We saw that the pressures had hit distribution companies hard and component manufacturers even harder causing near total fragmentation of their distribution policies.
"Our conclusion was that because of the confused situation of proprietary product distribution the only way to guarantee our future would be through a programme of own brand components."
This included short product ranges at very competitive prices yet maintaining the full proprietary brand range, to develop new products and to introduce a comprehensive parts catalogue. This would combine own brand products with some proprietary boxed parts but identified using a simplified numbering system.
His company has also constructed a totally integrated distribution system called Homer Products which is aimed at establishing the eventual stockists as garages and not high street shops.