It Pays to Advertise PRUDENTLY
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Any Form of Publicity Must Not Only Be Accurately Aimed But Also Show Knowledge of the Peculiarities of Individual Trades : Smart Turn-out of Vehicle and Staff an Asset
IN two articles (December 6 and 13) dealing with the provision of maintenance facilities, I emphasized the importance of the traffic side of the business. I pointed out that however essential efficient maintenance of vehicles may be, it should not be allowed to overshadow the commercial development In discussing established costs (The Commercial Motor, September 27 and October 4) it was suggested that 55 items might be included. Of these, five would fall under the heading, "Sales"; (1) Representatives' salaries and commissions. (2) Representatives' car expenses. (3) Advertising. (4) Entertaining. (5) Gratuities.
Newcomers to transport operation may conclude that such advice does not concern them, as they would be unable to provide a sates department of that size. That may well be so, but it is important to bear in mind that if any business is to be successful, such work has still to be done, although in a more limited form, and without being delegated to separate members of the staff.
Sense of Adventure
It is a peculiarity of haulage that new entrants appear to be attracted to the industry by a sense of adventure which they still consider is to be found on the now euphemistically termed open road. Alternatively, they may have an engineering turn of mind and have a liking for driving and maintaining vehicles.
Unlike the newcomer setting up in business in the retail trade, prospective entrants to haulage asking for advice rarely give any indication that they arc interested in the commercial or sales side of transport operation. They often ask for guidance in obtaining licences or the type of vehicle which would he suitable to their needs, but the starting point should be to make a careful survey of potential profitable traffic in the area of intended operation.
But even before this could be done the newcomer would have to acquaint himself with the basic principles of costing, so that he could determine whether any potential traffic was profitable. To do otherwise would be the equivalent of setting up a shop in an isolated area with no prior knowledge of likely custom.
it is significant that large chain stores with substantial capital reserves make a detailed survey of potential trade before opening a new branch. How much more important is it for the small man about to enter haulage to do likewise?
Lack of Balance
For the established operator, development of traffic could often be given more positive consideration. This particularly occurs when a reasonable amount of traffic has always been obtained from a particular industry—possibly the initial traffic which encouraged the operator to start up in business. Anxious though he may be to have reliable main source of traffic, the current success of that particular industry should not be allowed to obscure a possible lack of balance in traffic characteristics.
The experience of hauliers in the early 1920s may seem of little interest to newcomers today. Knowledge of the lessons learned then, however, might save them the same bitter experience. Because of the expansion of the textile industry in those years, a corresponding growth in haulage had taken place. Expansion followed a common pattern. Originally the ownet -driver carried coal from railhead to adjacent cotton mills. Then followed raw cotton and finished products, and Finally collections and deliveries were made to the docks.
But when the rapid decline in the cotton industry followed, many hauliers lost the whole of their traffic virtually overnight; even though they were carrying different types of traffic, it had all been provided from one source.
In studying the activities of experienced operators it is remarkable how often, for example, agricultural and engineering goods are both carried, thereby providing an excellent balance whatever the ebbs and flows of national economy may be.
El / In an endeavour to develop traffic and, if possible, to obtain a more prudent balance it is necessary to advertise in one form or another. The problems involved are undoubtedly numerous and, for large undertakings, justify the expense of professional advice. &hailer operators, however, will have to use their own judgment and initiative.
In making the initial announcement of setting up in business it is not enough to advertise indiscriminately. First, a survey should be made, if only on a limited scale, of those likely to have a use for the operator's services and then to concentraie in formulating advertising accordingly.
Modest Results
In these days of specialization, traffic managers employed by trade and industry will take more notice of the requests for business from operators who have obviously taken pains to note the peculiarities of the company's traffic than those who vaguely claim to carry anything anywhere. For other operators it may well be that the comparatively modest results from canvassing traffic in one particular direction may prove more beneficial than obtaining a larger tonnage in the more popular directions_
Even, however, if there was good reason to believe that the initial traffic of the owner-driver was likely to be permanent. there would still be the need for development. of traffic if he was not to remain an owner-driver. This often happens precisely because this type of operator prides himself in having no overhead costs. This, of course, is not strictly true—every operator must have some overhead costs. What he really means is that he may have less than other operators, but in return he will almost certainly pay the price of not developing as other operators have done. If he wishes to expand, time and money must be made available to cultivate traffic.
Small Margin
In these days of full employment it is difficult to understand • the attitude of owner-drivers who are apparently content to operate on a small margin and with no intention of expanding. Unlike the situation 30 years ago, the alternative of well-paid jobs is readily available in most areas. Not only is the ownerdriver expending much energy for a small return, but larger operators with the obligations of statutory wages and conditions are placed-at a competitive disadvntage.
In order to obtain full value for money, any form of publicity must not only be directed to the right quarter, but must also show knowledge of the peculiarities and prospects of individual trades and industries. if the operator has any special service to offer he should state this clearly—for example, special types of vehicle or regularity in times of. service. Alternatively, his depot may be particularly convenient for the traffic he wishes to obtain.
A point which concerns newcomers especially is the name under which it is proposed the business should be established. As with other aspects, the possibility of growth should not be overlooked. For example, the name "North Hopshire Roadways" may be excellent with which to commence, but may
prove a liability in later stages of development when it might suggest as.restricted area of operation to potential users.
Because customers of commercial transport operators are impressed only by results, the publicity value of a well-painted and well-kept vehicle is doubly enhanced. A minimum of words inscribed on the vehicle has the best effect, and is cheaper, too.
No less important than a well-turned-out vehicle is the presence of an equally smart and willing staff. There are probably few other industries where such a high proportion of the staff employed have a sales and publicity value. For this very reason many operators consider the expense of supplying and maintaining uniforms well worth while.
Well-kept vehicles undoubtedly give confidence to both the customer and the drivers. Conversely, dirty and unreliable vehicles so often form part of the vicious circle of rate-cutting and poor service.
Even the smallest operator, knowingly or otherwise, uses a form of publicity when rendering accounts on suitably headed notepaper. Here, again, cheapness will undoubtedly give the recipient the impression of a doubtful firm. This may or may not be justified, but there is no point in taking this risk when the difference in price between good and cheap notepaper is so small.
. Value of Photographs
Many chassis manufacturers and bodybuilders supply their representatives with an album of photographs of their products for examination by potential buyers as to the range of types they manufacture. Established hauliers will find that a similar record of their activities would be reassuring to a concern whose business they were trying to secure.
When considering inserting advertisements in the Press it should be realized that the rate charged is largely bound up with circulation. Figures of circulations, however, may be misleading, particularly to general hauliers whose custom is in such a limited field. Trade journals may have much smaller circulations than general newspapers, but give the advertiser better returns.
On the other hand, if all .available custom in the operator's particular area has alteady been obtained, the continuation of local advertising expenditure should be reviewed, assuming that, as is most likely, weekly personal calls are lready being made on customers.
There is no doubt that the cost of any advertising is looked upon as a doubtful and unnecessary expense by many operators, although they will not hesitate to spend larger amounts on vehicle equipment of problematical value as an addition to revenue-earning capacity.
ha making a personal call on a potential customer with the object of canvassing traffic, it would be a serious mistake, in eagerness to obtain it, to offer to operate virtually at cost. Subsequently, it will be found even more difficult to increase the rate than to agree on a more reasonable rate in the first place.
Unhappy Experience
As an example of the problem that can arise through the quoting of an extremely low rate, a large volume of traffic had been passing over a long period from A to B at '50s. per ton. A newcomer to haulage, keen to obtain the business. quoted a rate of 30s. per ton to the directors of the company concerned. The traffic manager. who normally dealt with rates, was told to make the maximum use of this newcomer, although by experience he knew only too well the ultimate results. The first few deliveries were made on time, then delay developed and finally the traffic was not moved at all.
Meanwhile. the hauliers who had served the company. well for many years had vehicles standing idle. Likewise, the goodwill that had been developed over the years turned to recrimination. Ultimately, after an 'unhappy period for all parties, the traffic returned to the original haulier,
New entrants to the industry who have little or no previous experience of personal canvassing should not be too easily disheartened by lack of success in the early stages. It may be that the customer either has no traffic to offer or is satisfied with the service offered by the haulier's competitors. If the latter is the case, never in any circumstances decry a competitor. Such an attitude would make the worst possible impression on the customer. Far better to stress any aspect of one's own services which one honestly believes to be better and can guarantee to maintain.
The value of circular letters is limited, and, for a small operator in any event, they are virtually useless, as it would be • unlikely that he could provide the services he had offered if he received a. substantial number of replies. It would be far better to make an initial call on a few selected potential customers to whom he could give immediate attention.
After a personal call it would be advisable to confirm by letter any verbal offers he made as to rate and service. In so doing the haulier should bear in mind that, whatever the standard may be in other sections of trade and industry, there can be no room for exaggeration when offering transport services. There are no terms of degree relative to time and place. Traffic managers have singularly long memories for verbal promises of collection or delivery that never materialize.
As distinct from the general haulier, the operator of smalls qr parcels services needs much wider publicity, because obviously small retail shops and individual members of the public require them. The local evening and weekly Press would provide an excellent medium.
I have said earlier that it is always a bad policy to criticize a competitor. It would, however, be commercially prudent for operators, before calling on prospective customers to canvass traffic, to try to ascertain all possible information about competitors' activities—rail or road.
Changes have been made in railway staff organization to modernize commercial relations alongside the modernization of track and equipment. The recent adoption of the new Railway Merchandise Charges Scheme gives much greater freedom than in the past for commercial negotiations with individual customers.
Guarantee of Times Some hauliers are apprehensive about the ultimate effect of. railway modernization. leis therefore of the greatest importance that the operator should take themaximum possible advantage of factors which remain in his favour. Provided a hatifiee has briefed himself adequately before entering into negotiations with a customer, he should be able to give an immediate quotation of rates for any particular traffic and, aqua* important, a personal guarantee of delivery times. Nor should he fail to emphasize the condition in which traffic will be delivered, compared with other forms of transport, even though this is virtually taken for granted when the traffic passes by road.
Traffic managers of large companies are continually pressed by their manufacturing or sales departments for specific promises of delivery and they have no time for services which cannot meet their own demands.
Apart from direct canvassing of potential customers, another form of publicity is membership of public bodies, such as local chambers of commerce and social clubs. Many of the larger hauliers are, in fact, represented in this way, although more might be done by hauliers in medium-sized and smaller towns. Maintenance of goodwill in this manner provides further opportunities of contacts with customers and possibly prior knowledge of local industrial developments.
Whilst not strictly in the realm of advertising—as it relates to customers already obtained—operators of appropriate size may find it well worth while to institute some form of cardindex record of their customers. On each card should he indicated the name of the company and whether they were associated with other undertakings, followed by the name and designation of senior members of the staff. Details of whether or not they operated their own transport and, if possible, an estimation of their total potential annual traffic, and the amount
at present carried by the haulier, could be included. S.B.