HAULIERS RESPONSIBLE FOI )OR AFTER-SALES SERVICE?
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• By A. E. O'Halloran,
M.I.M.T.
IHAVE read with some interest your report of the speech by S.T.R. to the Seddon company's distributors which appeared in your issue dated October 27, also your report of a speech by Mr. F. Rudman, of Rochdale (" The
Commercial !Motor " dated November 17), and I have been
keenly interested in all that has been written in criticism of the commercial-vehicle distributor and the retail motor trade generally. I have not, however, read many items
written in their defence nor, in my opinion, has the real root of the trouble been touched upon.
As for the past eight or nine years I•have beerr employed (part of it during the war) either as sales manager or workshop manager by commercial-vehicle distributors in the south-western counties, and have, for many years, been associated with the retail motor trade, I feel I am in a position to say something on their behalf.
Surely a little thought will disclose that the real culprit is none other than the haulier himself. The real causes of many of the troubles which beset both haulier and distributor are the former's craving for the latter's discounts (that "something of" which does not belong to him), and the almost complete lack of co-operation between the haulage industry, generally, on the one hand, and the commercial-vehicle makers and distributors on the other.
The way in which liaulage contractors, in the past, have wrung discounts from distributors in competition with each other can be described only as sheer robbery. Knowing there was little to choose between vehicles of a given class or price range, they have " played off " one concern against another, filching the maximum possible amount of the distributor's rightful revenue. The P.B.S. (salesman) has given that " little bit more " in fear of losing the deal fo his competitor, well knowing that, in so doing, he would receive a "kick in the pants" for bringing in a bad deal. " Shylock " is a quite inadequate term to describe what has been the attitude and mentality of the average haulier in the past toward the commercial-vehicle distributor. Except for the war period, I see but few signs of this attitude being amended, yet haulage contractors would be the first to shout if a similar trick were to be " worked " upon them.
Part-exchange Vehicles Fit For The Scrap-heap • We do not go to our tailor and ask what discount he will allow if we give him an order for a new suit, neither-do we haggle as to how much he will allow us for our old suit, fit only for the rag bag, in part-exchange. Yet many of the vehicles offered by hauliers in part-exchange, and for which they have demanded ridiculous prices, have been fit only for the scrap-heap.
Having well paid for themselves and in an advanced state of disrepair, it speaks volumes for the distributor and the mechanical efficiency of his staff that many of these have been thoroughly reconditioned and resold (usually at a loss) to other road operators who are always the keenest of buyers. In other instances the dtstributor has home the loss of consigning these vehicles to the scrap-heap. While this state of affairs is allowed to continue, how can the distributor be expected to provide that efficient " aftersales" service which the haulier demands?
Prices of private cars have been stabilized for some years. and the motoring public has accepted the position as being fair and just. It is time that prices of commercial vehicles were stabilized also, and that the giving of discounts, in any form, or excessive prices for worn-out vehicles, should become a crime, which, indeed, it is.
Unless the commercial-vehicle distributor can receive his just remuneration by way of full commission on sales, he cannot afford to provide adequate premises, efficient equipment and stores, or give adequate wages and reasonable working conditions to his emploYees. What I have said regarding discounts applies with equal force whether dealing with the heavier classes of vehicle or the lighter, so-called, popular types. . Why should the larger operator be able to purchase on terrds more favourable than can the smaller operator? Surely this is illogical, and, if anything, the small operator should have the advantage over his.larger competitor. As one of your correspondents remarked, "the haulier has been bitten by the discount bug," and a little inoculation by S.T.R. with a few facts and figures might help to eradicate the disease from his brain. There are many costs involved in distribution which may not be apparent to the average haulier. As S.T.R. well knows, you
cannot get something for nothing, and a given repair job to any commercial vehicle costs the same, within a shilling or two, whether it be .carried out by a distributor or by the haulier himself as such costs as rent, rates, interest on capital, lighting, power, management, office administration, wages, equipment, etc., are common to both parties. The distributor, however, has to bear such additional sales-costs as advertising, demonstration vehicles and their maintenance, remuneration to sales staff, additional office charges, special sales-boosts and publicity generally. The. amount of money he can spend in this connection is limited by the commission he is allowed to retain by the haulier.
Meagre Commission Limits Buying of Equipment But what is more unfortunate from the haulier's point of view. is that this amount is usually so small that the distributor cannot afford to buy additional equipment, or carry out that much-needed improvement which would enable him to give a more efficient repair service to the haulier with adequate stocks of spare parts. (It should be borne in mind that equipment for handling commercialvehicle repairs costs about 50 to 75 per cent more than does similar equipment for handling private cars.) This, of course, is the key to that complaint of lack of efficient service. The haulier cannot expect to have it both ways, and he would appear even to begrudge the distributor his miserable 5 per cent. (minus) profit which, as S.T.R. again knows, is about all the profit attached to any retail motor business by the time all due charges, including income tax, have been met. During the •pre-war years few distributors could afford to carry Stocks of spare engines, gearboxes and axle units which were essential if operators' vehicles were to be put back on the road again with a minimum of delay. In a few instances manufacturers have supplied the units to distributors on a sale-or-return basis, a form of co-operation much appreciated by the retail trade. Yet, in spite of all these difficulties, there was, during the years immediately preceding the war, a steady expansion of that type of repair establishment catering especially for the requirements of the haulage industry, and this expansion would be accelerated considerably, given the right encouragement.
The haulier is an expert at his job of hauling? but, outside his own sphere, he has proved to be anything but expert. The job of distributing, maintaining and servicing road-transport vehicles rightly belongs to the commercialvehicle distributors of the retail motor trade, and, if given a fair deal, they can do this better than anyone.
It is necessary to say a word here in defence of the motor mechanic—so-called. I do not believe that commercialvehicle distributors have, generally, been guilty of turning out bad repair work for the haulage industry as has been hinted at various times.
It is my experience that the average mechanic employed in the repair of commercial vehicles is of a type rather superior, in skill at least, to those employed on repairs to private cars. He is usually quite a good fitter, a reasonable turner, and, generally, of the " all-round " resourceful type—one who is not beaten when a spare is not immediately available—with as much knowledge of the C.I. engine as of the petrol engine. He takes a pride in his work and would not turn out a " dud " job. He can command, and usually receives better wages than does the private-car mechanic. He should be encouraged with still more wages and better working conditions, for, unfortunately, there are too few of them.
My point-is that those available are not all in the service of the hauliers. Quite a number of them are employed by commercial-vehicle distributors and those so engaged are reasonably satisfied with their conditions of employment. How often have I called upon an operator, and seen a mechanic struggling with a rear-axle repair in an open yard, in mud or dust and wiping the grit from a differential assembly with oily hands before fitting it, and with hair and face covered with filth. Even under cover the working conditions in some hauliers' establishments are such that no self-respecting distributor or his service manager would tolerate them for one moment.
From all the foregoing I do not wish to imply that distributors, as a class, are blameless. Fax from it: I know only too well most of their shortcomings, and foremost among which are (1) their apparent lack of interest when a haulier is in a " spot of bother" with one or two of his vehicles broken down on the road, possibly many miles from his home town; (2) lack of efficient heavy salvage equipment for handling broken-down or damaged vehicles on the road, and (3) the worst, perhaps, a lack of adequate spares which results in a vehicle being kept hanging about the workshop for several days waiting for some small item, when it should be out "earning its keep." The second and third points are obviously bound up with the hauliers' lust for the distributors' discounts. I know also, of coarse, that most manufacturers are far from satisfied with their distributors, but then, the manufacturers cannot agree on a uniform sales policy and, in some respects, are as far apart as the poles. Furthermore, having produced some fine vehicles they are, for the most part, the last word in inaccessibility, so adding to the cost of maintenance.
Criticism of the Sad Lack of Accessibility On how many vehicles, for instance, is it possible to draw out the engine from the front within, say, half an hour, merely by removing the radiator and a few bolts? That about that front-end universal joint, so boxed-in with bodywork as if meant never to be seen again, and to get at which it is necessary to be a contortionist? And why follow the shoddy American method of wiring-up electrical equipment? Why not steel conduit and flexible armoured cable joined to insulated ironclad junction boxes, making it a quick and easy job to replace a faulty length of cable? I believe that " quality above all " is the only policy worthy of the British motor manufacturing industry. Which brings me to my next point, that of co-operation. Earlier I referred to the speech by Mr. F. Rudman, and that because it is typical of the narrow and selfish attitude of mind prevalent among many haulage contractors.
Referring to roadside garage proprietors, Mr. Rudman states that " economically there was no reason why, as a purchaser, he should be particularly concerned about such ' traders." What a poor, misguided outlook for the wellbeing of our joint industries. Then, in almost the next breath, Mr. Rudman makes reference to "democracy. If democracy means anything at all, I think it means "consideration for the other fellow's economic interests and well-being and the contribution which he call make, as a trader and a citizen, to the general welfare of the community as a whole."
Here is a reason why " bulk-buying " is wrong, fundamentally, because it means, among other things, getting " something off." In other words, taking away some other person's livelihood and power to purchase those very commodities which the haulier earns his living by carrying. S.T.R. has had the vision to see this, and the courage to condemn it.
It is impossible to mention any matter connected with my particular section of the motor industry, however remote it may appear, which has not its repercussions throughout the whole of the industry. Whether it be a matter of design, legislation, finance or labour, all sections are so bound up and interconnected; that whatever affects one affects the other to a greater or lesser degree.
It is not just common sense, therefore, that all sections should get together—hauliers, distributors, manufacturers and others concerned—to try to remedy some of the ills which beset them all in one way or another. What a powerful body they would be for the good of them all.
Unfortunately, however, hauliers have proved, fairly conclusively, that they cannot co-operate among themselves. Even at this late hour they are only just getting together, driven to it in a desperate effort to save their own economic lives.
LargelOperators Who Fail to Co-operate Whether this be due to the independence and individuality of the average haulier, or to that suspicion of each other and of everyone else which most of them share, it is not easy to say. I suspect a little of both. Is it to be wondered at that they have not co-operated with other interests outside their own particular circle?
Occasionally I have come across instances in small provincial towns where a small operator of five or six vehicles has made 'arrangements with his local garage proprietor to undertake the complete maintenance of his small fleet, and this arrangement has worked fairly satisfactorily for both parties. Who, however, heard of a larger operator of, say, 20 or SO vehicles contacting his local distributor and making a similar arrangement ?
It is only one step farther for hauliers, as a body—if they could keep together for a few minutes—to approach distributors, who already have the premises and equipment, 'to thrash out,a proper scheme of maintenance. Always remembering, of course, that they—the hauliers—must be prepared to give as well as take, i.e., to give the distributor his own commission,
Carried a logical stage farther, such an association could embrace manufacturers, Fas.v. operators, the B.R.F. and other interested bodies with common interests, who could command those super-roads worthy of a great industry; who could demand relief from the heavy and ridiculous taxation on h.p. and unladen -weight for the benefit of trade and industry as a whole.
Manufacturers could then be persuaded to produce just those vehicles which the haulage industry requires, and distributors might even get the chance to provide those super-service and maintenance depots throughout the country where hauliers could obtain quick and efficient service.
It is worth mentioning, here, that strange as it may seem, the commercial-vehicle side of the motor trade is watched over by only a small committee of the M.T.A. as a sort of appendage, instead of being given the high priority which it deserves. I cannot recollect that it has clone much to foster the interests of the commercial-vehicle distributor, or made an attempt to bring about co-operation between the haulage industry and distributors.
The manufacturers themselves have done far more to help distributors than has the M.T.A. by such practical means as loan of demonstration vehicles, preparation of well-printed catalogues, and the unstinted assistance of their sales and service representatives "on the job."
It is to be regretted that the haulage industry has not thrown up one outstanding personality with the courage, foresight and drive, who would not be suspect by his own haulage fraternity, and who could command the confidence of all other interested sections.