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Opportunity knocks
Page 52
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Word has it that an independent dealer is about to buy a controlling stake in a haulage company. We think it could be a good idea...
Words; Kevin Swaltow
INDEPENDENT dealers are renowned experts of the capitalist system, but times are tough. Prices are all over the place.
The view from the used market is that it is a time of struggle, but it's a safe bet that its percentage of profit against turnover will remain, despite the drop in units and cash revenue.
Key to survival is diversity The tried and tested routes are rental, franchise, spare parts, tyres, recovery, paintwork, refurbishment, body conversion and workshop. But what about transport?
Why not apply a strict entrepreneurial policy to running a haulage firm? The link is direct and running a transport business isn't just logistical — you can leave that to a transport manager — it's about selling your business via hire or reward. There are countless hauliers that have struggled on hire or reward alone and moved into selling trucks, normally starting with their own fleet, and closing down the transport operation altogether.
By reversing the trend and incorporating a haulage company, the possibilities are endless and stem around controlled cashflow.
The first option is that the vehicles can be traded. A second benefit is buying power: being a haulier opens negotiations with manufacturers and franchised dealers for new stock to come on to the books. Third, you can develop workshop facilities to service and maintain other vehicles. Finally, you can squeeze out competitors.
But there are caveats: deciding which part of the business nets the profit, extra investment and more logistical headaches. And British haulage is on the back foot in the UK.
But let's dwell on the positives. It could be a cheap entry point to accessing vehicles, and with the pound weakening against the euro, for once the tide is not in favour of foreign growth. The big logistics companies, with their big logistics contracts, won't be flexible enough to pick up the slack, whereas a small haulier with a fresh cash injection, switched on transport manager, and a clever sales ethic could be in the right place at the right time.