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Rocket? It's more like a damp squib
Page 72
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CM'S inside trader
has been surprised to read that business has 'rocketed' in the new year, especially when so many used truck dealers are struggling to shift even the best stock off the forecourt.
When! opened the CV trade magazines at the start of January, I was surprised to read that -business is off to a flyer-, or"sales are through the roof', or"auction X reports a new year high",orβ my personal favourite β"sales have rocketed!".
It's news to me.This year so far has been average.., plain old average. I know in this business it's important to be and appear optimistic at every opportunity but surely some degree of reality is needed.
Trade, franchised or otherwise, has got off to a slow start in 2006.That's my view and that of my close associates. Selling in the new year to end users is traditionally slow because invariably floating buyers don't come out of their shell until FebruaryThere's the main body of hauliers, one-man bands,exporters and middlemen buying stock consistently (and we'd be in trouble if they didn't), but the floaters that turn a poor month into an ave rag one, and an average month into a good one, just aren't about.
Floating buyers are too conservative to be out spending their hard cash in January bcfor the rest of the country picks itself up from the festive period.
Fact of life
It's a difficult fact of life, but supply and demand across the retail sector eventually trickles down to road haulage. Shoppers not spending on the high street? Supermarkets experiencing a slowdown in profits? That affects those hauling imported clothes, shoes, furniture and dispensable items from ports, and the movement of perishables to RDCs. This in turn influences whether potential buyers will decide to replace their tractors Wi more up-to-date vehicles.
Those Christmas road transport purchases back in September and October will be coming back into the used market this month (February) and that won't help us any If you're selling fresh stock at trade prices there's some extra business to be had β provided you have the right stock.And shout you be selling overseas,export normally makes up for the shortfall produced by end users through the early part of the year. If you're flexible enough to do this then I concede that you might be off to a flyer and your sales might have rocketed.
It sounds like I'm moaning.., and I am.Trad off my forecourt hasn't experienced any flyer rockets, records highs or through-the-roof sales. I'm optimistic that lean sell the stock oi my forecourt for good retail prices; it just might take longer to shift.
After two strong years I predict that the used market will struggle to maintain its momentum this year. Profits will drop, stock levels will be lower and it will be even more o a battle to get the clean stock on your forecourt. Remember, you read it here first. β’