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1917: The Agent's Year—Article IX.

22nd February 1917
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Page 3, 22nd February 1917 — 1917: The Agent's Year—Article IX.
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Conclusion of this Series : Reflections, Parallels and Anticipations.

By the Editor.

The title for this. series, which the present article concludes coincidently with our twenty-fourth volume (12 years of publication), was adopted for good reasons. We quote from Article I, as under:—

" We name 1917 as the year in which the agent will come into his own in respect of commercial motors. We forecast that the year will see relations between the leading British manufacturers and agents at large put upon a sure foundation. . . . . We look forward to seeing, within the twelve months which are ahead of us, re-organization on an extensive scale of pre-war selling methods. . . . •Little can be done, we know, under present conditions Terms and types can none the less be agreed, as well as territory."

The year of importance is the year of settlement, as with any Act of Parliament in relation to the conditions which it may fix for years to come: we are still in the era of commercial motoring which was opened by the Heavy Motor Car. Order of 1904. The agentcurt-agency-cum-depot settlement of 1917 will certainly influence, in some respects as if with legislative force, though it may not Wholly control and determine, the fates of companies, firms and individuals in the world of commercial motoring for, say, the 12 following years, if not for all time.

We find, from the records of our business and publishing sides of the work of Temple Press Ltd.,.that new supporters have flowed to our lists of readers and subscribers since these agency-organization article's were announced. This new interest, this fresh rally, this evidence of quick response to the first considered anticipations about a basis for trade revival on civilian linee, and this proof that there exists a readiness in the industry to "close the ranks," have signally encouraged us. Both use and the user of commercial motors will benefit.

There are at the moment nearly 85,000 commercial motors of all sizes and types in service on the roads of the ILK., exclusive of naval and military vehicles. There were, at the 24th June, 1904, fewer than 19,000 motorcars. We take the view, from " touch " with the movement and industry going back to October, 1895, that the commercial-motor side to-day is on the same relative mark as the private motorcar was in 1004, i.e., at the gateway of universal acceptance and irresistible success.

The success of the motorcar industry, between 1904 and 1914. was due to two cardinal factors: (1) the vehicles were mechanically capable of providing their own recommendation of performance ability by achievements to date on the road ; (2) agents and agency organizations gave enthusiasm, money. and

time to the furtherance of their adoption on a general scale all over the country. The failure of agency interest; between 1904 and 1914, so far as commercial motors went, was due in part to the above-cited absorption of agency effort in the better-understood and easier selling, maintaining and victualling of private motorcars. Detail reasons for the general non-participation of agents in commercial-motor transactions have been amongst the themes with which the eight earlier articles of this series have been ccncerned.

One reflection stands out prominently in. the writer's mind. It is derived from occurrences, conversations and speeches at, about, before and after a certain dinner of the Agents' Section, S.M.M.T., in the King's Hall, Holborn Restaurant, on the 12th Nov.einben 1912—but little more than four years ago, and less than two years before the outbreak of war. The late Mr. Stafford, Mr. Noel Mobbs, and Mr. Arthur Spurrier are the personalities. We recall that nearly every factor then was against the development of,cooperation by agents. The war has changed the peospcctz and for two main reasons : (1) agents have both " paid their footing" in, and made-money out of, cernmercial motoring ; (2) British makers must now adopt the course of sellingmuch of their output through agents or through their own branch depots—and the former is usually the better and cheaper course. • Communications from motor agents and other proprietors of suitable depots have reached us in growing numbers during the .past nine weeks—since the now-concluded No. I series was started_ Others, of course, are to follow it. That promise answers many of the inquirers. Direct letters are being sent, to satisfy others. A short series, in part concurrent with the one by the writer, concerns electric equipment for depots. We must ask the indulgence of those who wish to pre.ss us for, particulars of others. Each in good time. We have not lightly set our band to this war, after-war, and after-peace programme' of showing where and why the agent can and should come in. That which we have in mind for 191 may quite truly be regarded as but referring to the inauguration of the era of the agent. We believe that will be the case. We have advocated, tested and tried the cause of "the middleman." year by year, since the beginning of 1905, but we have never done so with more than that halting degree of semi-donfidence which must be characteristic of any movement for the success of which the chief grounds have yet to be brought into existence. The war has brought them along, in commercial motoring. We no longer have any doubts, nor do we now stand alone in recognizing the force of the old circumstances as deterrents. We are as convinced of the accuracy of our estimate of the important place which agents must now tele in the industry from the manufacturers' standpoint, as we are satisfied that, whilst not every agent will show himself competent, to seize the opportunity, many hundreds of the more responsible agents with resources mean for their own sakes to justify it by action.

We anticipate that agency sales will concern business with, local buyers on several. distinct i scales of acquirement. Sale outright, has been the more common heretofore ; hire-purchase has varied in incidence; purchase conditionally upon fixed maintenance by the agent will bethe new feature. It is the last-named course that will bring to the local depot that average net profit of £100 per machine per annum, to which we referred in -the closing lines of Article VIII, and so help towards a net return of, say, £5000 a year, solely from the maintenance and running accounts, for a 50-vehicle depot. We consider that the future strength of the agent will, as in older industries the world over; depend upon his arranging to be a purchaser. That way, and that Way alone, lies the reward of maximum :profit. We do not wish to convey that no other agency basis will bring good returns. Far from it. • A well-organized running and maintenance depot in any town or city must pa-y .hanrisomely, 'quite apart from the agency handling of new vehicles. It will pay for the simple reason that efficient local maintenance is the best of all magnets to draw users. From mechanical maintenance to an inclusive running contract is but one step, yet it carries with it the purchase of all consumable stores and supplies—oil, fuel, tires, sundries. If the profit to a depot on mechanical maintenance is 215 on any particular vehicle, that on " running" will be £60. A ratio of 4 to 1 is common. Let agents look to this vital point. They are not entitled-to reap all rewards until they lay out and equip their depots in the right manner. Again, once a user has entrusted the mechanical maintenance and the running to a depot, when his transport requirements next extend it is the owner of that depot to whom "falls in" the choice—and in many senses the right—to place the order. His incentive to get the best is even greater than that of the man who finds the capital, for the responsibility of a. poor commercial motor on a "maintenance and running" contract is-one which must involve enormously greater possibilities of loss than any higher first profit can equal. The depot man must recommend the best vehicle, in his own best interests.

It remains, finally, to point out that a. tire press is a necessity. Time must be saved, nowadays, if trade is to be held. The tire-press makers and the tire companies themselves are ready to see to this extension of essential local facilities. The depot which has to wait turn for tire work will, in years to come, find itself dropping in the list. A tire-press is much more essential than a, weighbridge.


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