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Playing at your home ground
Page 72
Page 73
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The selling policy for a major used dealership has to be national, but meeting customers on their home turf can pay dividends too. Kevin Swallow visits a new site on the Notts-Lincs border.
Keltruck is one of Scania's leading independent truck dealerships. Its reputation and clientele is nationwide and it sources trucks all over the country But as was so cleverly highlighted in The League of Gentlemen, there are significant benefits from having a local shop for local people — despite what the banks or Post Office might believe.
Many operators prefer buying from their local dealers because it saves time and trouble and these dealers are more likely to have the operators' interest at heart if they concentrate on the regional economy
Ideal location
These are points not lost on Keltruck used vehicle sales manager Phil Holmes, who operates out of Burton on Trent.The used truck site at Newark opened in January 2005 with its first advert appearing in the 6 January issue of Commercial Motor.
Newark is ideally positioned on the Al with links to the North and South as well as East Anglia and the Midlands — and more importantly there's no local competition.
"From Burton onTrent we sell nationally but there is a core business in your own territory," says Hohnes."Newark, however,is a greenfield situation.We are starting from scratch."
The target areas for Holmes and used sales executive Richard Dixon are to the east and south of Newark. "In some parts of the country hauliers only like dealing with local people," Holmes points out. "They are reluctant to travel — they prefer people who have an understanding of the area they are in."
Following the launch Holmes expected it would take three months to get settled but he has been pleasantly surprised by the response Keltruck has received from being based in Newark. Interest and custom has come from the town itself and from further afield in Norfolk and Lincolnshire.
"Our target was 45 vehicles for the year. Around one-a-week once we were established.All indications are that we will exceed the budget for this site," he says — but he wisely avoids making over-optimistic predictions.
That wisdom comes from many years in the trade. He's been selling trucks since 1979 and joined East Midlands Commercials in 1994, twc years after its launch in Nottingham; he was brought in to develop the used business from scratch.
East Midlands Commercials flourished and expanded to seven sites — last year was its most profitable to date.That proved a successful conclusion before Keltruck's Chris Kelly, already a 50% owner, took control of the remaining half and brought all the sites under the Keltruck banner.
The Newark site already offers 24-hour workshops, spray booths and accident repairs Holmes is confident that this all-encompassing site,more than matching any of the other Keltruck outlets, will be successful.
Flexible approach
The buzz of opening a new site soon gives way to talk of the used truck sector and what is on offer. Holmes expects to have around 15 vehicles on site: its size stops it accumulating too much rubbish, he jokes.
Vehicles return through previous deals, a wide customer base, operators phoning with trucks to sell and that old favourite, buy-backs. Much of the industry still sees buy-backs as deadwood, or a desperate ploy to build sales Levels — one used truck sales director describes them as `bye-buy backs'.
But Holmes believes you need to make buyback initiatives flexible. Rather than simply having a 'one price fits all' policy he advocates initiatives to reward operators if their vehicles ;ell well against their underwritten prices.
Another issue is the much maligned 380hp 5x2 tractor plated for 44 tonnes. This is an tndustry-wide issue as operators appear to lack onfidence that a 380hp can haul 44 tonnes. 'Twelve months ago we had plenty of 380s but :IOW they are selling again," he reports. 'Demand has picked up as people realise they will do the job." He points out that on average a 380 will be some £4,500 cheaper than a 420, and while you might lose a few minutes on journey times its fuel consumption is invariably identical or better. This is confirmed by Commercial Motor's used truck tests over the past 12 months using Scania R124s at 380 and 420.
On the forecourt
PX51 AXG worked out of Penrith for Jenkinson's hauling paper and chipboard.This RI 24L has clocked 435,000km since it was registered in October 2001. it's a double bunk sleeper and has a bolted fifth wheel that can be moved, rather than a slider. Keltruck at Newark is asking £31,500 (ex-VAT). •
Contact
www.keltruck.com Phil Holmes: 01283 742556 Richard Dixon: 01636700204