Bright side of life
Page 43
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Do used truck dealers wear rosecoloured glasses? According to Warren Cole, director at Oldburybased Brandrick Trucks, even the biggest optimists have found little to laugh about lately.
"When the job's good they can't tell big enough lies—when it's bad, even the biggest liars have to admit it's been quiet," he says.
Midlands used dealers have recently seen the market yo-yo for no obvious reason. Some stability is, however, finally returning. "July and August was dire but during September the signs were a little better," says Cole.
Brandrick sells around 300 trucks a year, specialising in middleweights from 7.5-17 tonnes, with most going to end users.
"Curtainsiders are very strong hut the thing that's bucking the trend is flats and dropsides—you can sell them but you can't buy them," he says.
After having seen many buyers wooed to the auctions by big sales, Cole reckons they're returning to the used retailers. By sticking to rigids, Brandrick has been less affected by the attractive leasing deals being offered on new tractors. But Cole believes a showdown with the manufacturers is inevitable. "It's no good looking for the independents to bail them out. They'll have to come back at a decent price," he says.
With its site next to the M5, West Bromwich-based Keltruck is ideally placed for passing trade, a point not lost on used truck sales manager Joe Woodhouse, who told CM of the Scania dealer's big plans for the future.
"We're going to become the supermarket for used trucks," he says. Keltruck is spending over £20,000 on developing a major retailing area within its Kenrick Way site which will have room for up to 300 used vehicles.
While rivals have been experiencing lean times, Woodhouse reports a terrific past few months. That success is down to standing firm on prices, he insists. "I've got the best product and I won't sell it cheap. The key to success is keeping your nerve—and not keeping bad buys."
Keltruck's used manager doesn't seem worried by the prospect of large numbers of P-cab tractors coming back from the likes of Tesco. "If we have 20% we'll still sell them," he bullishly predicts.
Sometimes you can promote your way out of a slump. It seems to have worked for Kidderminster independent Robert Reynolds.
He says: "I had a good run in September but August was very sick. I thought the easiest budget to cut was advertising but nevertheless I ran a major campaign in September and it set the phone alight. From feeling I needed to be out of the industry, I'm now thinking there's a future."
A respected market watcher, Reynolds is highly critical of the leasing deals offered by manufacturers: "We're starting to sell tractors again but they murdered us on a lease. They've been throwing out tractors and keeping the production lines open, but you try doing one of those deals on a rigid."
However attractive the offer, Reynolds believes that leasing can produce a "headache of debt" for operators, "More and more it isn't working," he says. "The £1,500 a month becomes a mammoth task to find. We used to see the same customers with part-exchange, but not today— they don't have the assets any more."
One recent sales blip has surprised him: "We've sold a lot of tippers in the last few weeks although we've been reluctant to deal with them at this time of year."
Stadium Commercials boss Jim Jones reckons the customer base for used is certainly shifting. "We need to face up to the millennium in a new way. We're already aiming at end users and looking to give them that better service," he says.
Stadium is investing heavily in resurfacing its 3.5-acre site and putting in a new air-conditioned sales office. "We're doing very well on medium-range vehicles and there's still the market for nice clean tractors," says Jones.
Stadium is aiming to sell around 200 used vehicles during the next 12 months.
The day CM visited its Walsall Road site it boasted a line-up of clean, late-model Mercedes-Benz 814s and EuroCargos, underlining the fact that the manufacturers have still to match the independents when it comes to retailing used commercials.
"I can't understand why they let them go," says Jones. "The benefit of selling used still hasn't filtered through to all of them."
The key to success is making that extra effort. "Some dealers get a call and say, We haven't got it,' and put the phone down," says Jones. "If we haven't got what the customer wants we'll follow it up and look for it. You get out what you put into it."
by Brian Weatherley