SERVICE-THE KEY TO
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MORE SALES
Bryan Jarvis finds out how two truck importers are increasing their UK market shares
REAKING into new fleet business is tough enough; but gaining the winning valuable repeat ord ers is even harder. It demands gaining the confidence of shrewd hauliers.
Price, performance, reliability all have an important part to play in sales success, but for foreign manufacturers particularly to sell commercial vehicles in the UK calls for attention to detail.
Yet over the past 10 years importers have increased their market share from 10 to 26.4 per cent when the market grew from 250,000 new registrations in 1975 to 348,000 vehicles registered last year.
So to what, precisely, can the importers' achievements be attributed? One of the most important factors is the quality and dedication of the after-sales support.
Even though it costs an arm and a leg to maintain standards, foreign companies continue to invest in service backup improvements. Those manufacturers who choose to neglect this area do so to their cost.
The UK subsidiary of Renault, Renault Truck Industries' (formerly Karrier Motors) is one company which has been strengthening its service support as part of a continual market programme. This in spite of a huge trading loss by its parent, Renault Vehicles Industries last year.
The foundation stone of Renault's UK back-up service are its 67 main dealers and 23 service points, the after-sales teams, training facilities at Dunstable, Safeguard warranty extensions, assistance breakdown and repair program me, and credit and interest schemes.
Two years ago RTI opened a 16,000sqm (176,000sqft) parts warehouse on the Elmdon trading estate close to Birmingham airport (with its twice daily flights to Paris) and with nearby motorway links. It carries a stock worth £25 million, and there is almost the same amount spread around the dealerships.
This year RTI has invested £100,000 in an advanced viewdata system, called Retrieve, which will speed parts distri bution by linking its nationwide dealer network with the Dunstable headquarters and Elmdon centre.
With around 40,000 customers and over 50,000 different truck parts, the logistical headaches are considerable, but RTI's director of after-sales service, John Lee, believes that the new viewdata equipment will provide the answer.
From his terminal the dealer will have his own use and storage facility, as well as being able to channel his parts orders immediately into Elmdon with vehicle off-road demands being given priority.
The new system also enables information to be passed around the dealerships about changes in batch and retail prices, and to transmit maintenance instructions.
Thanks to Retrieve, RTI is clearing up more of its 45,000 warranty claims much faster than before. It is now able to analyse each claim quickly and more efficiently, allowing repair bills to be paid off that much sooner, thus removing an unnecessary source of aggravation for the truck owner.
According to Mr Lee the Retrieve system, which was installed by Comdial Communications Systems of Frimley Green, Surrey, will pay for itself twice over within five years.
At present the rapid communication system is intended to be limited out to dealers. But there is tremendous scope for eventual links with certain body. builders and RVI in France. Even Renault Buses is examining its feasibility.
Dealers do not have to install Retrieve if they already have a system of their own, indeed a few are multi-franchise and have viewdata equipment. However, providing they have Prestel systems they can feed into the Comdial network.
Not all of the dealers are netted into the Retrieve system as yet but once they are both they and their customers will benefit.
One benefit will be lower costs and charge to the customer. "RTI has the lowest charges for VOR parts in the country," says Mr Lee. "Although 30 per cent of our business is VOR work it costs less than processing the remaining stock items. The average dealer calls for around 500 items annually on the VOR net."
To see the system in operation I visited the local West Midlands RTI dealer, Birmingham Trucks, which is housed in a former Goodyear tyre depot in Stockfield Road, Birmingham.
It is one of four such dealerships wholly owned by RTI along with Cleveland Karrier, Glasgow and West London. Rapidly nearing its first year of trading it occupies second spot for commercial vehicles sales in the Midlands, just ahead of Mercedes-Benz.
Traditionally, Leyland has always had the lion's share of truck sales in this region, but as general manager John Harris pointed out, clear leaders make a very large target.
Birmingham Trucks operates the full RTI customer back-up service to support local authorities, fleets, owner operators and small businesses. Quite a large proportion of its output concerns the after-sales support which is all part of the service package offered to the customer which includes contract maintenance, ministry testing, tachograph calibration and documentation.
Mr Harris was very pleased with the Stockfield Road dealership first year's trading results, and gave an insight as to why the Renault Dodge influence is steadily growing in the Midlands: "We never forget that the customers are most important people around here. It's they who pay our wages, not RVI or anyone else".
If North West Dal Trucks' sales per
formance is an indicator then Dais range of customer services is equally effective as those of' RTI.
Formerly a heavy haulage company, North West Daf evolved out of a period of difficult industrial relations in the early Seventies taking up a dealer franchise when Daf established itself in 1974. Since then North West's presence has steadily grown. It has almost trebled its sales of vehicles over 16 tons from 64 units in 1979 to 174 last year.
Increased sales and growth in customer service and parts accounts has led to the setting up of separate sub dealerships on Deeside and Stoke-onTrent.
"This is not growth for the sake of it, but to maintain the standard of customer service", says sales director Bob Chadwick. "Our policy is to build a platform of good service and maintain good communications with the customer."
Dais Topec system (Truck optimum performance and economy calculations) is designed to help new customers to select the right specification fir any unusual operational needs as well as calculating operating costs, and maintenance schedules. North West has its own tables of fixed price service charges which can be built into a customer's contract, made inflation proof and spread over any period, where suitable. Dais own repair contract service can also be included for repairs and maintenance, making a very flexible and comprehensive package.
Customers are supported by eight vans which do their rounds two or three times each week. And the main Northwich workshop operates a regular night-time maintenance service as well as the normal daylight work.
North West carries about 00,000 of major parts as well as a consignment stock of strategic assemblies belonging to Marlowe's central stores. Although most of its work is on trucks it also looks after Daf warranty work on the five Bova coaches belonging to National Express at Chester.
With over 450 service and parts accounts to cater for North West Truck Engineering keeps itself busy.
"We know there arc a lot of good vehicles being built today besides Daf," said Mr Chadwick. "Our edge therefore is to give the customer the best service and not keep him waiting," he added.