Hard work pays off
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Volkswagen light CV dealer Citygate is reaping the benefits of turning an eyesore into a facility with the potential to sell more than 300 vehicles a year
Words / Images: Steve Banner Transforming a near-derelict former Land Rover outlet into a thriving VW light CV sales, service and parts dealership is a challenge – but one that Citygate has risen to with enthusiasm.
Based at Wooburn Green just outside prosperous Beaconsfield in Buckinghamshire, Citygate Volkswagen Van Centre first opened its doors early last December after a £500,000 redevelopment, and business has subsequently taken off says brand manager (‘VW speak’ for dealer principal) Paul Weedon.
Resplendent in VW’s corporate identity, the shiny new dealership is a far cry from the sorry sight the premises previously presented. “The place sat idle for a couple of years and was plagued by vandals and thieves,” he says. “All the copper piping was stolen twice.”
Sales target
With 21 employees, the centre is targeted to sell 320 new vehicles this year, split equally between fleet and retail, says Weedon. Although it is still early days, performance to date indicates it’s a goal that will be achieved.
Around 75% of the vehicles will be destined for business use, with the balance, including camper vans such as the California and California Beach, bound for the leisure ▲ Brand manager Paul market. “The Transporter van is our biggest seller,” he says. Weedon is keen to draw in Occupying around two acres of land – which, according as much aftersales to VW, gives it the largest footprint of any of its van centres revenue as possible by in Europe, despite the fact that part of the site is occupied offering a delivery and by a used car business – the dealership is forging ahead in collection service the second-hand market as well. “We sold 25 used vehicles in one month earlier this year, and 24 in another, compared with a typical 10 to 12 a month when we were at our previous location,” says Weedon. “We were in a car dealership in High Wycombe and really short of space.” Much of the second-hand stock is generated by buyback deals.
New or used, a high percentage of what is sold is funded through Volkswagen Financial Services (VFS).
“Quite often, customers already have finance arranged through another provider, or want to pay cash, but we regularly manage to persuade them to switch to VFS instead,” he says. “That also makes it easier for us to sell them service and repair plans and gap insurance.” Gap cover bridges what may be quite a gulf between the written-off value of a light CV and the amount still owed to the finance company.
Paint protection
“It’s harder to sell gap insurance on vans than it is on cars, but van customers are certainly in the market for other products and services,” says Weedon. “Perhaps surprisingly, that often includes paint protection.” The pride so many customers clearly take in their vehicles means that he is contemplating setting up a smart repair bay so that minor bumps can be easily and quickly rectified. Special tools are used to massage dents out of body panels without the need for a traditional panel beater.
The workshop boasts five 5-tonne and four 3-tonne capacity lifts, with an adjacent bay available to handle Class-4 and Class-7 MoT tests.
Workshop opening hours are from 7.30am to 6.00pm Monday to Friday, plus Saturday mornings. “We may open all day Saturday in future,” he says.
While those opening times seem more like those of a car dealership, CV-style round-the-clock working would be problematic because the site is in a residential area and Weedon is anxious to maintain good relations with neighbouring householders.
There is, however, another consideration that may hamper the introduction of a nightshift. “It’s not easy to recruit technicians in this area,” he observes.
Now hitting as much as £43,000 worth a month, labour sales are healthy, even without extended opening hours. “Before, we never did more than £31,000,” he recalls.
While independent workshops in the area charge half to two-thirds of Citygate’s hourly labour rate to fix a VW, Weedon argues that his technicians are often more cost-effective because they take less time to complete jobs. That’s because they have the necessary diagnostic tools ready to hand, plus VW training – they spend many hours attending courses.
Weedon is prepared to spread his net quite wide in his bid to haul in as much aftersales revenue as possible. “We offer workshop customers within a radius of 10 to 15 miles a collection and delivery service,” he says.
Sponsorship
Sponsorship is helping to get the firm’s name more widely known. The van centre backs both Wycombe Wanderers FC and rugby team London Wasps.
Parts sales by value have totalled over £51,000 during some months – previously the figure never reached £40,000. “Those figures include sales of dealer-fitted accessories,” says Weedon. “Uptake of options is high.” All those sales are through the service department: Wooburn Green does not have a trade parts operation supplying spares to other dealers and independent workshops.
“We are, however, a VW trade parts specialist at our site at Colindale in London,” says Weedon.
Parent company Citygate Automotive operates six dealerships in the South East.
Plenty of accessories and accessory brochures are on display in the sixto eight-vehicle showroom to prompt customers to spend a little bit more on their chosen vehicle: not that many of them need it. The sales team is six strong and includes a sales manager and an assistant sales manager who have a key role to play when it comes to selling finance and insurance – Wooburn Green does not employ a dedicated finance specialist.
A high throughput of showroom traffic means that the sales staff have not needed to spend too much time knocking on the doors of local businesses, but that is about to change with the recent arrival of a new salesman tasked with doing exactly that.
The newcomer will be gratified to learn that he has joined a group that is hovering on the edge of the ‘Best 100 Companies to Work For’ lists published by The Sunday Times. Citygate Automotive was awarded ‘One to Watch’ status this year – so a full listing could be on the cards for 2013. ■