Evening all,spardo you have highlighted one of the major failings in manufacturers allowing independent Dealers to have Demonstrators without control on their use. And the manufacturer should have exerted control, because most would supply a demonstration chassis on very adventageous terms to the retail outlet. In general, dealer maximum discount, less 20%, plus an over ride discount of up to 5%, plus minimum 6 months credit, plus free RFL, and an allowance for 5th wheel paint etc! Not bad eh, and costing the manufacturer a packet, especially if the Dealer could not “qualify” his sales prospects, in terms of potential, and their financial viability. Or as happened so many times in the UK, the demonstrator “went” to the salesmans “friends” rather than genuine sales prospects!
The UK Hire and Reward market place was the largest and most vibrant market in Europe, during the late 60s early 70s, with operators “springing up” everywhere as a consequence of the move to liberal Operator licencing, (and I would venture the opinion that many should never have been allowed into the industry)! Why? because admirable though their ambitions may have been, they entered an industry with no appreciation that a “headline” earning figure for a vehicle, bore little relation to the true nett cost of operation, and final nett return…more often than not a negative one! But then of course they tried to avoid the inevitable by increasing their fleet size, and as a consequence financial turnover, untill the inevitable happened, and they crashed into insolvency, having wrecked the job to most others in the area because they had set the rates for a certain type of traffic so low.
So what has this to do with Demonstrators…actually quite a lot. European markets in the same period were moribund and stagnant. Production exceeded demand, then suddenly European manufacturers were receiving approaches from entrepeneurs in the UK seeking to market their product, in a vibrant UK market, where for many reasons home producers could not satisfy demand. The early arrivals, Volvo, Scania, Mercedes Benz,DAF , had the pick of the market in terms of potential retail outlets, (though their approaches to this were somewhat different in each case). Later arrivals, MAN, (via TKM Group), Magirus Deutz, Fiat, Berliet, Saviem , had to “scratch” to find retail outlets for their products, and sometimes the Dealers financial stability was questionable!. Then came the fight back by Ford, and Bedford into the expanding 28ton plus market with new products, coupled to Atkinson, and ERF seeking with the help of Mr ■■■■■■■ to acquaint operators with an alternative to the traditional Gardner.
So suddenly everybody was offering Demonstrators! Heaven for the Service Departments…“we need a demonstrator to cover …because he is off the road”, so there goes many days effective use into the dustbin! The excited salesman rushes in…“he has a new contract” , (at this point may I ask if anyone of my fellow contributors from the Hire and Reward sector has ever actually seen a written contract for haulage )? "and he needs a Demo to go to x y z, straight away,…and the potential is… " (Normally that sort of enquiry relates to a non credit worthy operator, and a badly trained salesman who cannot see what his eyes are telling him…that he is about to be had)! But again lost potential because the vehicle is being misused for its purpose. And the case I really hated, a Demonstrator is put into a fleet , just because the fleet is large, and the vehicle is put in, without any control…“just to see if you like it”!!! Wow, what a freebie…five seperate marques, say ten days each demo, fifty days Free additional revenue, cannot be bad!!!
And was I perfect in all of this? No of course not, many are the tales that I could tell. Once upon a time to regain ownership of a ■■■■■■■ powered Borderer, I waited at a Colliery weigh bridge, and as the recalcitrant “operator” left the cab, I shot in, and was away like a rocket, on the way to return my pal Noel Morgans , (D&N Morgan), tipping trailer to his safe keeping, and "my unit" back to Old Hill, (and the 20tons of coal......well that is another story)! Or there was the Nantgaredig haulier who just would not return a F88 Demo, even to the degree that when two of us went to collect it.......it was sitting without its rear wheels...but we found them, put them on,and were gone back to sunny Walsall in Gods England!
But these wayward experiences, and those that I knew had been endured by many lorry salesman from whatever marque, made me realise that Demonstrators were a badly utilised and abused tool in the UK. When I was working in the UK I resolved never to let a Hire and Reward Operator have the use of a free unaccompanied demonstrator. Own Account were in the main a different matter, and frankly where all my efforts went, because you knew that they were determined in their desire to try “my” vehicle as a viable alternative to what they were running. For Hire and Reward I used to turn up with a loaded trailer, (and weighbridge ticket), and do the demo that way. Most operators could easily make up their minds if the vehicle was for them, or not from that demonstration, and people seemed to respond well to a liveried,loaded demonstration. If they insisted on a few days exclusive use on their traffic, I would propose a weekly rental charge, which would be credited against a future purchase…boy did that excite people, but of the few who took me up,well they purchased new lorries!!
France was a culture shock, particularly in Hire and Reward, enormous fleets working at low utilisation, tractor and trailers rarely uncoupled, state fixed haulage rates, but much better credit attitude, bills were being paid, and generally a more business like mentality. But a stagnant market, and following the merger between Saviem and Berliet, falling market share, as the heavy Saviem product was phased out.
So how to get people into the big TRs, and out of the ever increasing number of Mercedes Benz, Scania, and michel`s Volvos. That is how the “black and reds” evolved, complete with all the chrome bits and bobs. Demonstration budgets were created for our wholly owned Dealer outlets, as well as the independents. Demonstrators were all fitted with visible fuel recording metres, and all Demonstrations were carried out to a strategy for the individual Dealer, and potential new business in his area. Al demonstrations were monitored, and debriefed at the end, succesfull, or not.We majored on a strategy of involving the operators and all his drivers, staff, their families and children. The Dealer Gymkhanas proved to be a major success, (for not a massive capital outlay). Themed around a weekend lunch, with attractions for the wives and children, side shows, features, stunts, music, but with a constant round of demonstrators operating on a pre ordained route, ride and drive opportunities, and tours of the (cleaned up, in some cases), facilities.
We also utilised “Raids”, driving tests around a theme…The Economy Raid to all the European markets where the TRs were being sold. The UK one came to the NEC in Birmingham, and then Glasgow, (we forgot that 38tonnes was above the UK maximum). I organised some road safety ones with the Gendarmes, which had a big take up, and created a lot of positive non trade press coverage. Then we had a programme of placing vehicles into “Flagship fleets”, (not of necessity the largest users, but the most influential in an area), with which we had great success. But all demonstrations were controlled, and the activity, and training of Dealer sales staff constantly monitored. One thing of which I am particularly proud was encouraging and creating within “my” Dealerships a collaboration between sales, service, and parts staff, (the latter two areas I see only as one, After Sales), and finally I managed to encourage the sales teams to see the After Sales as their future success in the market, for they would keep the business coming in.
Finally Anorak to answer your question, (and remembering my experience is really from the late 60s to the mid 90s, and my answers can only be subjective and personal), I found the French market far more “business minded”, than the UK. The second generation coming through had received a first rate commercial business education, and were looking at existing business with a more commercial attitude than their UK equivalents. And I found a comfort in dealing with people whom I found honourable and very professional. Belgium I loved, the people, the way of business, very like the UK of the 60s, great! Italy, for the sheer “exuberence” in doing any sort of business. When you started, you really had no idea where you would end up! But the experiences were tremendous, and enjoyable.But the best challenge and the most demanding, had to be the USA. I found US operators, hire and reward, and own account easy to do business with, and many years later Importing vehicles I found exactly the same thing! Back in the UK in the late 80s to 90s with our own Contract Hire business, I found little had changed in the Hire and Reward sector, so really spent my time on own account! And yes, I did run a fair few (Berliet) Renaults!
But surely Renault in the UK finally got its Dealerships, and Demonstration policies together?
Cheerio for now
,cheers benkku