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P LETTER OF THE WEEK

28th May 2009, Page 16
28th May 2009
Page 16
Page 16, 28th May 2009 — P LETTER OF THE WEEK
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Which of the following most accurately describes the problem?

Why is one truck-maker charging quite so much?

I AM WRITING to highlight one aspect of vehicle operation that appears to me to be spiralling out of control — I wonder if our firm alone is experiencing this problem, or if other operators are facing the same hassle.

The issue that concerns us most is the high prices that one manufacturer in particular is charging for new vehicles at present. I am well aware that this company's products are considered by many to be premium vehicles, a sentiment T wholeheartedly agree with, but there is a limit to the level of 'premium' that can be charged for any product, particularly in the extremely tough economic situation that we find ourselves in at the moment.

My own particular experience of the product goes back over 25 years or more, and includes driving, operating, specifying and purchasing numerous versions.

Previously, I felt the competitive wholelife costs, especially when the excellent residual value was factored into the equation, made it worth paying the extra charged by the manufacturer. As a company that purchases goods from within the eurozone, we are well aware of the effect of the weak pound on imported goods, and the difficulties it has caused European truck-makers in this market, but other manufacturers seem to be better able to cope with this situation and still offer their products at competitive prices.

It is also apparent that demand has collapsed in many of the previously fastdeveloping Eastern European markets. We in the West have far greater experience of these economic cycles, but do not expect to pay an exorbitant price when demand for new vehicles is at a very low level.

Our customers will pay a fair price for good service provided by competent staff operating good-quality equipment, but I have yet to find a customer who is prepared to pay £1 per tonne more because it is delivered by a particular make of truck.

Charlie Fisher Distribution and warehousing manager Countrywide Farmers


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