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Service centre R&A Scott does not sell trucks, but close
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linKs with its customers and high-quality servicing helps MAN national sales
figures. Kevin Swallow reports. Franchised service centres in rural territories have to deliver on hard-earned reputations for repairs, maintenance and servicing to stay ahead of the game. Status is always under threat as service director Andrew Scott, the A in R&A Scott Auto Service in Gainsborough. Lincolnshire,says:"I don't like to pick up the phone and tell the customer we can't dolt.
"Everything we've made has gone back into the business. It has come first, we've come second, every time. One of our biggest successes is training; we've always believed that if you want someone to do a job you've got to spend the money on the training. If you get stuck once you don't want to get stuck twice."
His nephew Gavin Scott, company sccrcLarv and son of MD Richard Scott (the R in R&A), says:"MAN has a points rating system for training which demands that technicians be trained on at least 20% of its products. On average we are at 29%."
Modest beginnings Like many independent, familyrun service centres R&A Scott Auto Services — which today employs 24 people including eight technicians and two apprentices — had modest beginnings. Richard Scott started the company in 1976, joined 12 months later by his brother Andrew,"working on anything that had wheels" including Volvo F88s and F86s, Dodges, Commers, and cars.
An opportunity arose when the company moved premises in 1985 with four employees."We heard that ERF distributor Cossington Commercials was closing and leaving Gainsborough. It took 10 minutes to find ERF's number, and we asked them if they still wanted ERF representation.They came, saw us and said get on with it." Richard explains Business doubled overnight with 400 ERFs to service and maintain."ERF had a two-tier system for distribution and service points.They wanted to put more dealers in at dealer level with all the facilities of being a distributor without the responsibility of selling trucks.They were called main dealers and we were the first one to be appointed in the country," he says.
In 1991 the current 0.75-acre site opened with 12 employees on the books. Recognition came as the firm scooped ERF Workshop Team of the Year and also enjoyed repeated parts team success. But it was no time to reflect on past glories: change was imminent.
Big business In 2000 ERF became part of MAN, and custom build and family values were to he replaced by big business. Richard explains: "ERF was very much bespoke, building 100 variants on a single model. Take the clutch; it could be any one of 10 products. If you look at MAN it's basically one clutch. ERF was very much a gaffer's truck."
"ERF was a family-run business," explains Gavin, "whereas MAN is corporate. It is a different culture, a lot more efficient. MAN is focused on the customer perception of the product, getting across the corporate image."
While taking on the MAN franchise offered new challenges, its structure of distributing vehicles dovetailed into ERF's two-tier philosophy.This allowed R&A Scott contact with the customer, with MAN delivering new-sale products through the service centre.
But Gainsborough's rural setting was a double-edged sword for the manufacturer. Breaking down the servicing work at Scott's reveals less than 10% is new-sale contract maintenance. "The national average for contract maintenance is 28.6%. [It is higher] if you've got a city local with big fleets," says avin."That .6% contract maintenance is low; we are ural, a lot of ustomers are armers that ave one or two trucks and tend o buy and pay as they go. We aren't that reliant on MAN contract maintenance and warranty work. Franchise contract maintenance is not such a binding factor, the prices aren't dictated to u&" Budget control of two bulk areas, retail and non-franchised work, is vital for commercial survival but external funding is not a consideration as service is not on the government's approved grants list.-We've had one," recollects Andrew, -£500 to move into Gainsborough..."
Resurfacing the yard and rcfencing the boundary is classed as maintenance with little tax relief, although adding to buildings offers better tax conditions as it is seen as new build. Gavin says the company bought adjacent land for holding vehicles, and invested in thirdparty ventures.
So trimming the bottom line means shopping around for utilities and insurance."We saved £3,000 on insurance," says Gavin. At year-end we'll buy equipment to cut down on corporation tax, invest it back into the company."
Service alone Richard brings us back to the present."Every time you talk to people they say you cannot live on service alone, there is just not enough money in service and repairs.We 've done it for 30 years and it's all we've ever done.
-We've just become the service agent for Knorr-Bremse.They were a little taken back because not many franchised people take on something like that, it's always the independents.Trucks and trailers come with Knorr-Bremse equipment, it's something we need to do."
Other facets of being a dealership have been considered but ultimately dismissed. "We know what we're doing," Richard adds.-We haven't found anything as yet that has pressed the button with block exemption, it's not a cheap option to take a franchise.
-There is a lot of stuff out there, but we look to spread our expertise to complement our MAN franchise rather than put it head to head with another manufacturer."
Andrew agrees:"In a company this size you can't be master of more than one. I know car dealers who have three under one roof and the service is terrible, totally out of control. If we lose a vehicle it's normally on sale price."
"We had one customer who sold his vehicle and bought another make,says Richard. "He phoned and apologised, but once it's out of warranty it's coming down here." •