• Robert Sutton believes that his Transport Users Group, formed
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last June, can offer small hauliers and owner-drivers a leaner, more cost effective service than the larger more established transport associations.
The TUG rejects "the whole philosophy of dinner dances", overseas jollies or regular member meetings. Instead, it puts greater emphasis on group discounts and financial advice.
Both Sutton and his partner John Burn have been in transport for many years. They started out as drivers and progressed to running their own small haulage businesses. "It was pretty simple," says Sutton. "We realised there was a gap in the market. The small guy has got no buying power on his own and the existing associations actually did very Little on a practical, day-to-day level to help them."
The membership currently stands at more than 1,000 (Sutton is aiming for 34000 a year from now), enabling the TUG to extend its range of discounts. Sutton says that the 260 basic annual membership fee can easily be recouped by making full use of these discounts.
A deal with Diesel Line provides TUG members two free fuel cards, which normally cost 26 each; .225 worth of free fuel on the first order; and discounted prices thereafter.
Members can get 10% off tachograph supplies through an agreement with Tachodisc at Warrington and they can enjoy bargain prices on computer hardware and software from Elmdale Systems. Vehicle accessories can also be bought cheaply thanks to an agreement with CDC.
"We're trying to think of those areas of expense that can hurt the small haulier," says Sutton. "For example, we have a printer who helps us produce our transport and distribution guide. We now recommend him to our members to produce their stationary business cards in return for a substantial discount. The printer wins out with new business and our members win out with cheap prices and guaranteed high quality."
For an extra 210 on top of the annual fee members can place free advertising in the TUG's guidebook, which has mushroomed from a quarterly newsletter informing the membership of changes in legislation and new discount opportunities. Although the TUG is dedicated to serving the needs of the small haulier, major companies such as Eurotunnet are showing interest in advertising, says Sutton.
One of the most interesting and potentially cost saving services offered by the TUG is the credit rating of customers. "We are on line to a national credit rating company through our computer," explains Sutton. "Members can ring us and say 'Joe Bloggs has asked me to do some work for him and I need to know if he can pay his bills and if he has paid them in the past'.
"Within two hours we can have a full report on the fmancial status and credit record of the company in question. But we know that financial reports can be quite long winded and heavy so we have employed a professional financial consultant to put it into layman's terms. When the member has scanned that processed information he can ring up the consultant, Peter Quas-Cohen, and talk through the figures over the phone," says Sutton.
"The aim is to save the members' time and help them to steer clear of the kind of customer who could put them out of business. Bad debt is getting worse and worse in this business. Knowing who you are dealing with could make all the difference," he believes.
A credit report of this kind normally costs around .2.60, says Sutton.
Cowboys and non-payers thrive partly because there is no central register, nor blacklist, for genuine hauliers to refer to. Work tends to come in fast at certain times of the day and there is little time to check out a new customer before making a decision.
Even those who have been in the road haulage industry for a long time can get caught out, Sutton warns.
In an attempt to steer its members clear of the worst offenders, the TUG has established its own register. "If one of our people runs into trouble with a customer„ we encourage them to call us. We will ' inform them of the best procedures to follow to try and get their money and we enter that customer's name on our blacklist," he says.
The list contains both third party users of haulage and larger hauliers who subcontract out with no intention of treating the sub-contractor properly. "The service is quite popular because it does cut out the risk of bad debt," says Sutton. "It's up to small hauliers to help each other. It's a pretty cold world out there on your own."
He cites two members, one in the North-west and the other is the West Country, as prime examples of hauliers who are benefiting from increased cooperation. Both were regularly running in to each other's territory and were often unable to find backloads. Then one of them realised that they were both in the TUG, he made a telephone call, and struck a bacidoad deal.
"With 1992 coming up it's getting more and more important for people to band together instead of fighting each other. I think that hauliers are beginning to realise this and that's one reason why I'm sure the TUG can succeed," says Sutton. "We're trying to encourage members to work closely with each other. If they use the transport guide properly, there's no need for them to undercut.
"The more members we have, the more buying power each individual will have through us. And more members means a larger pool of fellow members to co-operate with."
A telesales TUG recruitment campaign is currently underway and although no hauliers are barred from joining the association (except those on bad debt registers) Sutton says that the TUG is not really geared for big operators. "Hauliers with 50 vehicles or more can negotiate their own discounts and have their own financial advisors," says Sutton.
The recession is squeezing TUG members, says Sutton, although he is confident that prudent housekeeping can keep the wolf from most doors. "The people who will survive now are the ones who saw this coming and respond quickly.
"The bright side to the recession is that there are now fewer hauliers chasing less work — fewer hauliers because a lot of them have gone to the wall and less business because demand is down.
"At some point the economy will pick up and the hauliers still intact will do very well out of it. My message is that the 'TUG is not a fly-by-night organisation. We can help our members keep going through .the downturn."
El Paul Fisher