Survival of the fittest Investment is vital to survive in
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a tough climate, according to Rygor MD Tim Stacey Nerds: Steve Banner Rygor Commercials is investing in both employees and premises, according to MD Tim Stacey, as it aims to make headway in what remains a tough economic climate.
The Westbury, Wiltshire-based Mercedes-Benz dealership has taken on eight additional sales people primarily to help it cope with the arrival of the new Citan light van. "We've already held three ride-and-drive events and we're starting to take some nice orders," he says.
Stacey adds that those events, along with a telesales campaign and the recent online MacGyver ads, are building Citan's profile — but ultimately there is no substitute for sales people going out and knocking on doors. "If you are buying a CV, then you want to see somebody," he explains.
The dealer is aiming to invest £5m in its dealerships to improve the back-up offered to operators at a time when it is coping with the steady arrival of a procession of new truck models, including the Antos, Arocs, Atego and the widely praised Actros. "We're delighted with the mpg figures the Actros is returning," remarks Stacey.
Predicting a slow rise in truck sales Stacey believes that some buyers' desire to opt for Euro-5s before the advent of Euro-6 in January is sure to have an impact on truck sales volumes in 2014, but he doubts it will be calamitous. "I think we'll see a 10% to 15% rise this year, followed by a 10% to 15% fall next year," he observes.
"Remember that the inability to obtain sufficient credit will restrict the scope some firms have to stockpile Euro-5s," he continues, "and that many companies like to have a stable acquisition pattern, without lots of peaks and troughs."
While Citan transports Mercedes into a completely fresh area of the market, the new Arocs construction chassis takes it into a sector where it has not been a significant player for several years. "We've always struggled in it, but we can now see a massive opportunity and we're already getting some positive feedback," he says.
So far as Citan is concerned, it is not the first time Mercedes has broken new ground in the light commercial business. "We did so with Vito a few years back and we can learn from that experience," Stacey explains.
"As well as recruiting additional van sales people, we've been busy re-training our existing sales staff," he adds. "What's important is to qualify the customer carefully, then sell the benefits."
Stacey adds that he is "delighted" with the way the Mudie-Bond takeover (see box) has gone.
"The level of support delivered to customers by the former Mudie-Bond dealerships has improved over the past few months — and customers are happier." • THE MUDIE-BOND TAKEOVER Last year's acquisition of fellow Mercedes-Benz dealer Mudie-Bond turned Rygor Commercials into the biggest Mercedes van and truck dealer in Britain. It now has 19 locations, including branches in Reading, Swindon, Salisbury, Tewkesbury and Heathrow.
Its 600-strong workforce includes 175 Mercedes-trained technicians, 60 parts specialists and 30 sales people. It plans to sell 2,700 vans and 600 trucks this year.