Tapping into a new market – commercial vehicles create vantastic opportunity

We've always got a huge selection of vans

The shortage of stock which is driving up car prices is having the same impact in the commercial vehicle market – creating real opportunities for retailers.

Like cars, the focus needs to be on quality, with van buyers increasingly attracted to premium brands such as VW and Mercedes to help set their businesses apart from the crowd, while the likes of air conditioning and electric windows also growing in popularity.

“Good quality commercial vehicles are scarce and profit margins probably higher than they’ve ever been,” says David Fildes, 

grs Commercial Vehicle Specialist.

By sourcing commercial vehicles directly from major fleet operators and hire companies across the UK, grs is able to stock a wide range of makes, models and prices, all of which are available for retailers to view online 24/7.

“In addition to having one or two vans alongside cars on their forecourts, they have access to many more on our website, which can help them find the one that exactly meets the customer’s business needs,” continues David. “And because a van is a work tool, it’s not an emotional purchase in the same way as a car, so people are more likely to make a commitment without sitting in it and driving it first.”

As a result, increasing numbers of retailers are seeing the grs website as their own shop window to help secure sales – a process facilitated by the high quality images and detailed vehicle descriptions. “Across the industry, van descriptions are far less detailed than they are for cars, photography tends to be poor or non-existent, and important documents such as service histories are often missing,” says David. “However, at grs we treat commercial vehicles exactly the same way as cars and never compromise.” What that means is market-leading images of every commercial vehicle inside and out taken on the company’s 360 degree turntable, accompanied by detailed descriptions. And because grs buys direct from major fleets and lease hire companies, the vehicles are normally accompanied by all the important paperwork. “The provenance of commercial vehicles is extremely important to us – and our customers,” he says. “If something is missing we will always try to track it down, as we know it makes a difference to their profit margins – and that’s what really matters.”

According to David, buying vans is no different to cars, with end customers looking for good quality, low mileage vehicles. “Businesses looking to economise by downsizing may move from a Ford Transit to a Vauxhall Vivaro, while those people setting up on their own may well opt for small or mid-sized vehicle – which are also most likely to appeal to retailers who want to place a van on their forecourt alongside cars,” says David. “By diversifying their stock, commercial vehicles are helping retailers to attract new customers by tapping into a market they may not previously have considered. They’re well worth a look this year.”

Putting vendors in control with a smart approach to repair and refurbishment

“We are right at the cutting edge of repair technology,” says Mark Holliday, Technical Services Manager at grs. “We’re continually investing in the latest tools and techniques and are working at the very highest levels.”

As soon as vehicle inspections are completed and the level of work to be undertaken has been agreed with the vendor, Mark’s 50-strong team swings into action, working in two shifts across a total of 16 hours a day. Offering a comprehensive repair and refurbishment service for any make or model of vehicle on-site, the workshop plays a key role in the grs de-fleeting service. Laid out on a production line basis for maximum efficiency, repairs can be completed on up to 50 cars in a single day ensuring vehicles are ready for sale as quickly as possible.

Vehicles are logged into the workshop using a bespoke computer system which ensures the team knows the exact location of each one and how far through the repair process it is at any time. They then make their way through an ‘active grid’ which begins with panel repairs and moves on to preparation, painting, refitting and polishing, culminating with a stringent quality control check.

The workshop team uses the latest technology including the Miracle system which enables larger dents to be repaired without the need to replace whole panels – creating impressive results while at the same time keeping costs as low as possible. Scratches and smaller dents are treated using the revolutionary SMART (Small Medium Area Repair Technique) approach which can also reduce time and costs by focusing on the area that needs to be fixed, rather than repairing a larger surface area.

Yet investing in the latest technology and the most up-to-date techniques is only part of the story – grs also continually invests in training. “As a result, we’re able to take these techniques to an extremely high level,” says Mark. “We surpass our own expectations and those of vendors, who are often astonished by the results.”

Mark goes on to say that his technicians are not motivated by doing a good job – but by doing the best work they possibly can. “They’re continually pushing the boundaries and have a real sense of professional pride. There are very few people able to match the work they do.”

Once repairs have been completed, vehicles are cleaned or can receive a full valet, depending on the vendor’s requirements. With room for 4,500 vehicles on-site they can also be stored or prepared for dispatch on a transporter. “What’s important is that vendors are completely in control, as they decide how much or how little work they want us to do,” concludes Mark. “What’s more, we’re able to achieve top quality results cost-effectively because of the smart way in which we work – which really does represent the best of both worlds.”

An inspector calls – the role of the inspections team in driving vendor value

Adrian Holz

A keen eye for detail and an encyclopaedic knowledge of a wide range of vehicles are both essential attributes for members of the grs inspections team, which plays a key role in ensuring maximum value for every vehicle de-fleeted through Cold Meece. 

Both speed and efficiency are vital components of the process, which begins with vehicles being assigned a unique barcode to track their progress through the site. “As soon as a vehicle arrives at Cold Meece, the clock starts ticking, so there’s no time to waste,” says Adrian Holz, Vehicle Inspections Manager, whose eight-strong team aims to have the process completed in just four hours. “The inspection is an important part of de-fleeting so we never rush, but from the vendor’s perspective the sooner it’s completed the better. Our unique combination of highly trained experts and streamlined processes ensure there’s no delay,” he continues.

A thorough interior and exterior examination is carried out inside a purpose-built inspection tunnel, with any defects such as scratches or dents carefully logged to build a detailed description of each vehicle. The inspectors then recommend the level of refurbishment and repair work required, which will depend on a number of factors including the vehicle’s age and mileage, along with guidelines set by each vendor. “We either work to a pre-agreed set of standards or use our own judgment to assess the amount of work required,” explains Adrian. “We are the vendor’s eyes and only recommend essential work which will add to the value of the vehicle.”

The inspectors also use their in-depth knowledge of vehicle specification to note any other factors which might boost the sale price for vendors, such as the addition of audio systems, sat navs, alloy wheels or run-flat tyres. “Our inspectors are familiar with the manufacturer specification of a wide range of vehicles, though we also have access to reference guides and online resources if we need them,” says Adrian. While the latest systems and processes play an essential role in ensuring quick turnaround times, there’s no substitute for the experience and expertise of the team, according to Adrian Holz.

“They understand cars,” says Adrian. “They know what to look out for and what needs to be done. It’s not about trying to make cars perfect by removing every single scratch or chip – it’s about doing what’s necessary to achieve the best possible price for the owner. “That’s exactly what my team does and I believe they’re the best in the business.”

Efficiency, flexibility and quality – de-fleeting at its best

It’s often said that time is money, a phrase which could have been coined specifically for the motor industry, where the spectre of depreciation follows every vehicle from the moment it first leaves the factory.

“It’s no exaggeration to say that every hour of every day makes a difference to a vehicle’s value, and that’s precisely why we think in terms of hours rather than days when de-fleeting vehicles on behalf of our clients,” says Theo Kortland, Managing Director of grs.

In translating this thinking into action, grs has developed arguably the most efficient and sophisticated de-fleeting operation in the industry, combining cutting-edge technology and processes with the very best people.

Based close to the M6 at Cold Meece in Staffordshire, every aspect of the 36-acre logistics centre has been designed with efficiency in mind, bringing a fresh approach to the traditionally time and labour intensive de-fleeting process. Every aspect can be undertaken on-site – from arrival and inspection through refurbishment and repair to preparation and collection or dispatch.

“Cold Meece has been designed on a production line basis, to make the de-fleeting process as quick and cost-effective for clients as possible. Time really is money and we ensure that neither are wasted!”

In addition to efficiency, flexibility is also important, with vendors able to make use of as many – or as few – services as they need. They can also define the way in which they work with grs. Continues Theo, “The flexibility of our Cold Meece operation puts vendors in the driving seat, as they can specify the precise services they need to meet the needs of their businesses.”

Quality is another given at Cold Meece. Bespoke hand-held technology and computer systems unique to grs ensure the flow of vehicles around the facility, while cutting-edge techniques employed by highly skilled technicians produce stunning results when repairs are required. “Our job is not only to de-fleet vehicles, but also to maximise the value of each one,” says Theo. “By continually investing in the most efficient systems and using the latest SMART repair processes for example, we can not only increase the speed but also reduce the cost of de-fleeting, both of which help to achieve the best return for our clients.”

Its all in the delivery...

While the Cold Meece logistics centre is often described as the jewel in the grs crown, the Staffordshire site is also home to a hidden gem - the company's transport service which ensures vehicles reach retailer forecourts without delay.
"As a company we're focused on making it easy for retailers to buy trade vehicles," says Andy Bourne, Logistics Co-ordinator. "However, that extends beyond the actual purchase to include delivery as well. Once retailers have purchased their vehicles, naturally they want to get them on sale as soon as they can. That's where we come in."
The transport team aims to have delivered vehicles within two working days following receipt of cleared funds to any destination on the UK mainland - from Land's End to John O'Groats.
Three vehicles or fewer tend to be driven under trade plates, while four or more will normally be sent by transporter. The total cost depends on the distance, worked out on a system of 25-mile zones, while the team will provide a bespoke quote for distances of more than 300 miles.
As well as being cost-competitive, the service also takes all the hassle out of the process. "Retailers are busy people and most don't want to collect vehicles themselves, as it takes them away from what really matters - running their businesses," says Andy.
"When we take care of the transport, we really take care of it," he continues. "We take all the stress away and in the unlikely event of any damage occurring to vehicles en-route, we'll take care of that too."
Despite the transport service being an essential 'back office' function, the trade plate and transporter drivers play an important front-of-house role, particularly when handing over vehicle keys. "We choose our drivers very carefully and only work with the best," explains Andy. "They have to be professional, smart and trustworthy as they're important ambassadors for grs."
This view is endorsed by Antony Timmis who runs a fleet of transporters based at Cold Meece. "Any business is based on trust and we've built great relationships with many retailers who rely on us to get their vehicles to them quickly," he says.
"Although it can often take several weeks to receive something you buy on the internet, we aim to get cars and commercial vehicles to retailers across the country within two working days, whatever the weather throws at us. That's something I'm proud of."
For more information on the grs transport service please contact Andy Bourne on  08... Ext 2353.

Cold Meece - the jewel in the grs crown

Located in the heart of the Staffordshire countryside, the Cold Meece logistics centre bristles with the sort of technology that would have impressed the site's former owners, the Ministry of Defence.

Now the jewel in the crown of the grs business, the 36-acre site was formerly home to a wartime ballistics factory. "There was a railway line from Cold Meece directly to Stafford," explains General Manager Steve Beale. "They would make and test ammunition here and then ship it off to the frontline."

Today Cold Meece has an equally important frontline role, giving retailers all the ammunition they need to run their businesses as efficiently as possible. Every aspect has been purpose built to facilitate the smooth and efficient flow of vehicles through the site, which ensures they're ready for sale and delivery to retailers as quickly as possible.

Over the past 10 years grs has made a multi-million pound investment in the centre, at the heart of which sits a bespoke high-tech system which tracks and monitors the progress of every vehicle through the site. Once purchased, it also enables vehicles to be located within minutes, ensuring they are ready for collection or dispatch at a specific time.

While the technology undoubtedly plays an important part in the process, there's more to it than that, according to Steve Beale. "The efficiency of Cold Meece is built around the three Ps - people, planning and process," he explains. "Once vehicles arrive on site it's my responsibility to ensure they're logged in, inspected, cleaned, photographed and made ready for sale.

"The sales team will often pick up the phone and call retailers when there are vehicles coming in that match their buying profile, so it's not uncommon for them to have been sold even before they arrive on site," he continues. "Speed is essential and so everything - and everyone - must work together seamlessly."

As soon as cars and commercial vehicles arrive at Cold Meece they are all logged-in using a hand-held device which allocates each one a unique barcode. The on-site team of around 60 people then swings into action, starting with a thorough inspection.

"We look at every inch of every vehicle for any scuffs or dents, as well as making sure that all the specification is exactly as it should be, from spare keys and log books through to audio systems and spare wheels," continues Steve. "This is an incredibly important part of the process as retailers trust grs to provide high quality vehicles that meet their expectations in every way."

Although Cold Meece regularly receives 100 vehicles or more every day - or even up to 300 on really busy days - they will normally have been logged-in and inspected within just four hours. Those requiring refurbishment work are sent through to the workshop, before being cleaned and then photographed.

Throughout Cold Meece grs employs industry-beating standards of best practice, not least in the photographic suite which features a 360-degree turntable - one of the latest investments in the site. Vehicles are photographed both internally and externally from a number of angles and against a plain background.

Once photographed - and following a final quality control check - the information and images of each car and commercial vehicle are uploaded onto the grs website which retailers can access 24-hours a day. And all this is normally completed within just one day of vehicles arriving on-site.

"The barcode system ensures we know the exact location of each one," says Steve. "The logistics team can then get them ready for dispatch as soon as they've been sold."

As for the latest investment in the site, although it may not be another high-tech addition, it's an important one nonetheless. During the summer the grs sales team relocated from Shrewsbury to new accommodation at Cold Meece to help improve the service provided to retailers still further.

"Having the sales team in the same place as the vehicles makes great sense. If a retailer has a question about a specific vehicle we help the sales team to locate it within minutes and they can actually take a look," says Steve, who is inviting retailers to take a look round the site themselves.

"It's hard to visualise the Cold Meece operation unless you've seen it and retailers are very welcome to come and visit us to see how it all works."

Getting closer to customers: grs creates new field-based sales team

With the continuing shortage of stock making life challenging for retailers across the UK, the importance of buying good quality vehicles has been thrown into even greater focus, along with the need to understand the needs of the local market.

To help retailers achieve both of these business-critical objectives, grs has re-structured its sales team and made a number of new appointments. Moving away from a portfolio-based approach, the country has been divided into five regions, with retailers now benefiting from a two-person team who will work closely with them to maximise every opportunity for profit.

"We're proud of the service we've offered retailers, but we're always looking for ways of doing things differently and better on their behalf," says Sales Manager Dean Richards, who has recently recruited an additional four people, taking the sales team to a total of 10.

"These changes will take our service to a new level completely by offering retailers the best of both worlds - access to office-based as well as field-based experts."

Spending several days a week on the road, the field-based team will be available to meet with retailers, who can tap into their up-to-the-minute knowledge to ensure they have the right stock mix for their forecourts. "Our sales team act as buyers for retailers and will be working in partnership with them to find new opportunities and maximise profits," says Dean. "Rather than doing this remotely over the phone they are now able to meet in person, out on the forecourt."

Continues Dean: "Even in challenging times there are opportunities for retailers, as long as they understand and adapt to changing conditions. For example, families are looking for smaller, greener or more economical cars to keep running costs down, while many experienced trades-people who are striking out on their own are in the market for a good quality van.

"It's this sort of insight that we can offer, as well as helping to ensure retailers have the right makes, models and price range to meet the needs of their customers."

In addition to the right stock mix, the need for quality is greater than ever, according to Dean. "Quality has always been a watchword at grs and that won't change," he says. "We only buy the best quality vehicles, so retailers can rest assured that our standards - and their reputation - will always be maintained."

He adds: "What's more, we always do everything we can to help retailers derive additional value from every vehicle by looking to source items such as log books and spare keys, all at no extra cost."

And not only has the sales team been restructured, they have relocated into new purpose-built accommodation at Cold Meece."As well as getting closer to our customers through the creation of the field sales team, we're also getting closer to our vehicles!" says Dean.

Any retailers interested in visiting Cold Meece can contact Dean Richards on 0844 2255477.

Making the most of a commercial opportunity

Nearly 39% of retailers see commercial vehicles as a major opportunity for growth in 2012, second only to cars over three years old according to the new grs survey results.

David Grice, Sales Director at grs, agrees with this assessment, but cautions retailers to choose commercial vehicles with the same care as they do cars. He believes the main opportunities this year lie with small commercial vehicles.

“Businesses looking to economise by downsizing their vans may move from a long wheel base to a short wheel base,” he says, “while people setting up on their own will normally opt for small or mid-sized vehicles – which are also most likely to appeal to retailers who want to place a van on their forecourt alongside cars.”

Those retailers looking to broaden their stock mix with the addition of commercial vehicles should make their purchases based on the following criteria, which are David’s three golden rules:

1. Condition: “Just like cars, vans need to be good quality and prepared to a high standard. People are far more choosey nowadays and commercials not in such a good condition or with damage just won’t attract the same premium or interest,” he says. “Also, when commercial vehicles are sharing forecourt space with cars, they need to be up to the same high standards.”
2. Mileage:  this is just as important for vans as it is for cars, especially when retailers are looking to compete with commercial specialists. “Rather than trying to compete on price alone, it’s important to have an edge, and this is where mileage can help. Just like a car, buying a van is a major investment. Unlike a car, a van is a tool to make money, so it’s important that people get it right.”
3. Offer something different: many businesses will be looking for a specific type of vehicle – such as a Luton or drop-side van – or something that helps them stand out from the crowd, such as colour. “Business buyers today may well not be your traditional white van drivers, so consider stocking a blue VW Transporter or a red Vauxhall Combo, for example,” says David.

For those retailers yet to stock their first commercial vehicle, the grs team is on hand to advise them every step of the way. “A potential customer looking for their first van may well be nervous, and buying from a traditional car retailer will give them confidence,” continues David. “It’s definitely something worth considering this year.”

If you would like to speak to grs about any aspect of buying a commercial vehicle, contact us on 01743 281818. 

Opportunity still knocking as retailers remain upbeat about the year ahead – new survey results

Despite stories of the economic gloom continuing to dominate the headlines, many car retailers across the UK are optimistic about the prospects for their businesses in 2012, according to the results of a new grs survey.

Nearly a quarter (23%) of retailers completing the online survey are more upbeat than they were at the start of 2011, with more than a third (38%) believing the outlook is just as good as it was 12 months ago. In contrast, just 39% of all those questioned are less optimistic about the year ahead.

While such optimism may at first glance seem surprising, it chimes with the views of grs Managing Director Theo Kortland, who believes the key is to adapt to the challenging conditions. “Without doubt, there’s still a market. People still need their cars to get to work, go shopping or take the children to school. That hasn’t changed,” says Theo.

“They may take the car out less frequently and drive fewer miles, but people are continuing to drive and will look to replace their cars too,” he continues. “Nowadays they may look for something smaller and more economical, and that may well be their motivation to buy another car, to keep costs down and save money in the long-run. In turn, that can be an opportunity for retailers to tap into.”

Moving on to the main opportunities for growth in the year ahead, the survey results reinforced the sense of cautious optimism, with a quarter (26%) of retailers identifying cars between 12 and 18 months’ old, while more than a third (38%) cited those aged between 18 months and three years. Interestingly, 29% believe commercial vehicles will present the greatest opportunities in 2012, highlighting just how many are adapting their businesses to the changing conditions. 

“The message for all of us is clear,” continues Theo. “We shouldn’t be spending our time worrying about things we can’t control and over which we have no influence, such as inflation, the cost of petrol or the broader economic conditions. Instead we need to channel our energy into getting our offer right, and then shouting about it to make sure everyone knows.”

Theo believes that having some older vehicles on the forecourt will have a role to play in tempting potential buyers in, they should only be seen as part of the solution. “As every retailer knows, footfall is important and it’s essential to create a proposition that’s sufficiently attractive to encourage people to take a look.

Tapping into New Markets

The global recession of the past few years and the continuing uncertainty caused by the UK’s faltering return to growth, have changed the way that people buy everything from everyday essentials to big ticket items such as cars. Businesses have had to face up to the new economic realities, not only reviewing their own business practices but also adapting to the new buying habits of their customers.

Just like every other industry and business sector, vehicle re-marketing is changing, with many vendors such as rental and contract hire companies adapting their de-fleeting cycles as a result. At the same time car retailers large and small have been reviewing their stock requirements as the needs and spending power of their own customers have changed.

“The market may well be different now but that doesn’t mean there isn’t a solution that meets the needs of vendors and retailers alike – and that’s where we can help,” explains David Grice, grs Procurement Director. “Because we sell vehicles to a network of 6,500 franchised and independent retailers across the country and understand precisely what their requirements are, we can use this knowledge to find solutions for vendors.

“In other words, we use our up-to-the minute industry expertise and extensive database to find a market for vendors’ vehicles which matches the prevailing market conditions.”

One example of this is the way in which many leasing and hire companies are making their existing stock work harder for them by extending their de-fleet cycle from the traditional six or 12 months to 18 months or more. While this makes good financial sense during the lifecycle of the vehicles, at face value this could present more of a challenge when it comes to disposal. However, grs has been able to identify, and tap into, a growing market for vehicles of this age, as retailers too adapt to the market conditions.

“What retailers are telling us is that many of their own customers’ needs have changed,” says David. “Whereas in the past they may have bought a six or 12-month old vehicle, they’re now looking for one that’s around 18 months old instead. What hasn’t changed is the need for good quality, low or average mileage vehicles, but many people are looking to spend a bit less than they may have done pre-recession.”

Continues David: “Our unique relationship with retailers has enabled us to present this opportunity to vendors, while our Cold Meece logistics centre enables us to store up to 4,500 vehicles at any one time. Combine these two elements together and it means we not only have the capacity but also the appetite to buy vehicles all year round, to ensure a continual supply to our retail customers.”

Spotlight on...the grs logistics team

For busy retailers replenishing their forecourt with new stock, buying vehicles can often be hard enough – without the logistical challenge and additional time required to arrange for them to be shipped to their premises.
“We can take the problem away from retailers, freeing them up to focus on what really matters – running their businesses,” says Andy Bourne, Logistics Co-ordinator at grs. “Our aim is to make buying trade vehicles as easy as possible, and that extends past the actual purchase, to the transportation of the vehicles to their final destination.
“Retailers don’t need the extra hassle of arranging for their vehicles to be moved in addition to everything else,” continues Andy, adding that in addition to efficiency, speed is also of the essence. “Once a vehicle’s been paid for, the retailer needs to get it on site, prepped and on sale as quickly as possible. We understand those pressures and have the know-how, people and equipment to help.”
Aiming to deliver anywhere within mainland Britain within two working days, and within five working days to Northern Ireland is the main objective for both Andy and his colleague Miranda Coombes, and vehicles can either be driven to their destination under trade plates or on transporters, depending on the number of vehicles purchased at one time.
Up to three vehicles tend to be trade plate driven, while a transporter normally becomes the most cost-effective option when four or more have been bought at the same time. grs operates a clear and transparent pricing structure based on the delivery distance, enabling retailers to see exactly how much it will cost.
“On a busy day, it’s not uncommon for up to 40 transporters to arrive at our Cold Meece logistics centre either delivering or loading up and heading off to all parts of the country,” says Andy. “We always plan ahead to ensure that vehicles can be collected as quickly as possible, and it all works like clockwork thanks to the market-leading systems and processes we employ there.”
To help ensure grs is able to deliver on its two working days promise, its trade plate drivers and transporter partners undergo a rigorous selection process. “It’s essential that they sign up to our way of doing things in terms of speed, care and courtesy, since they have an important customer-facing role.”
Once loaded up, the drivers regularly deliver down to the south east, south coast, to the south west and Wales, and as far north as Aberdeen and Ullapool, with the vehicles remaining the responsibility of grs right up to the point of arrival, giving retailers valuable peace of mind.
“Our aim is to make life as easy as possible for retailers, and the logistics side of our business is an important part of that,” concludes Andy.

A day in the life of...Andy Lowe, Contract Manager

“What vendors really appreciate is that grs buys cars all year round, not on a seasonal basis or when it suits us, but month in, month out,” says Andy Lowe, arriving back at base in Shrewsbury after visiting one of his clients – a car rental company. “That’s one of the things that really sets us apart.”
Another important factor is flexibility, with grs happy to work with vendors in the way that best suits their business model, including outright purchase, residual value underwriting and acting as an agent to sell vehicles on their behalf to a network of more than 13,000 franchised and independent retailers the length and breadth of the country.
“It’s so important for me to visit vendors on a regular basis for a a catch-up. It’s a chance to discuss what they have coming up for sale and how they’d like to work with us to sell those vehicles,” continues Andy, who places great value on the relationships he is able to build with his customers.
“It’s not just the fact that we buy vehicles, it’s the way that we do it that’s important too. People buy from people, and we’re a relationship business as much as a car buying business, so it’s important to get that right.”
He continues: “We pride ourselves on being good people to do business with. We treat people the way we want to be treated ourselves, and that’s why we always pay for vehicles promptly and always do what we say we’re going to do, as trust is so important.”
Following his first meeting of the day, Andy dropped in to see another vendor – a contract hire company – to pick up some vehicle logbooks before dropping in to see a retailer on his way back to Shrewsbury. “It’s essential for me to understand their perspective and take on the market too,” he says, “as sharing our market intelligence with vendors is also important.”
From time to time, he will also arrange to show a vendor around the company’s logistics centre at Cold Meece in Staffordshire – a purpose-built location which brings to life the scale and sophistication of the grs operation. “As soon as people see Cold Meece they understand how we have the capacity to de-fleet and re-market their vehicles so quickly and efficiently,” he says. “As well as being able to store 4,500 vehicles safely and securely at any one time, the bespoke systems and processes in place at Cold Meece are extremely impressive, while the site also includes our new high quality photographic centre with a 360-degree turntable.”

The remainder of Andy’s time is spent striving for perfection. “I’m forever checking stock and making sure we have all the necessary service histories, keys and documentation we need to sell vehicles quickly for vendors, because that’s what it’s all about for us – making vehicle re-marketing as easy as possible.”

Avoid the car buying lottery with grs

When is £8,000 not £8,000? It may sound like the start of a joke, but buying a car only to find additional and unexpected fees and costs mounting up is no laughing matter.
“Buying a car can be a bit of a gamble, or even a lottery,” says Dean Richards, grs Sales Manager. “The price under the hammer isn’t necessarily the price you end up paying, and lots of seemingly small additional fees and charges can really start to add up, which isn’t helpful in the current climate.”
According to Dean, increasing numbers of retailers are reporting that on top of a vehicle’s purchase price, they are being charged additionally for having documents or spare keys sent out to them, while fees are also being levied based on the vehicle’s price or even its engine size.
To make matters worse, the car buying lottery often dictates that the likes of spare keys and service histories may or may not be available with the vehicle depending on your luck, while a close inspection may reveal damage that needs to be fixed before it can be made ready for sale. Add to this the cost of a tank of petrol or diesel to drive it back to the forecourt and a seemingly healthy profit margin can start being seriously squeezed.
Not so when buying from grs, where £8,000 really is £8,000. “The price retailers pay is the price they pay, it’s as straightforward as that,” continues Dean. “We don’t charge any fees and we’re always clear from the outset whether a vehicle has a spare key and a full service history. When people buy from us they can be confident that the vehicle will be just as described and that there won’t be any unexpected fees or charges.”
Vehicle descriptions at grs are second to none, since retailers can view vehicles online where detailed information is accompanied by market-leading interior and exterior photographs taken at the purpose-built photographic suite at the Cold Meece logistics centre.
“There are no joining fees, no unexpected fees and no appointments required, as retailers can view all our vehicles online 24 hours a day,” says Dean adding that the market knowledge of the grs team also comes without charge – another rarity in today’s market place.
Continues Dean: “Our account managers are talking to people in the industry every day, so they know what’s selling well and where the opportunities lie. We’re always happy to share our knowledge with retailers and to work in partnership to grow their businesses. No fees and free market insight – we can’t say fairer than that!”

Driving profit with commercial vehicles

With commercial vehicles offering retailers a valuable additional income stream, it is often only a fear of the unknown preventing many more from benefiting, according to David Fildes, Commercial Vehicle Specialist at grs.

“Demand for good quality commercial vehicles has been consistently strong over the past year and we believe this trend is set to continue,” says David, adding that a corresponding shortage of stock is helping to keep margins high.
“It’s still a tough and challenging environment for most retailers at the moment, so good news is always welcome. The high demand for commercial vehicles and the price they’re commanding is one such positive area, though there is definitely an emphasis on quality, particularly good condition, low mileage and late plates,” he continues.
“We talk to retailers every day of the week, and many are telling us that potential customers are regularly asking them if they can supply commercial vehicles, ranging from small car-derived vans to the mid-sized vehicles – such as the Ford Transit and Vauxhall Vivaro – and even pick-up trucks.”
And with summer already a distant memory, many traders will be thinking about upgrading their vehicle to get them through the coming winter months and beyond.
So with demand high and good margins to be had, what’s stopping more retailers from putting a tentative toe into the commercial water? “Like anything, it’s likely to be a fear of the unknown,” says David. “Retailers who haven’t previously stocked commercial vehicles will be unsure about their prospects, especially in today’s uncertain economic climate.
“However, the demand is there and we know from experience that any retailer can sell a commercial vehicle. What’s more, when buying from grs they can be assured of the same quality and service as they receive when buying cars – so that’s another reason to be confident,” he continues.
Indeed, grs has extended its market-leading photography to commercial vehicles and has recently started including images of both domestic and commercial vehicles within its weekly stock lists, as the company maintains its focus on making life as easy as possible for retailers to sell more vehicles.
Says David Fildes: “The ability to click and see is proving popular, especially when coupled with the high quality images available online and the fact that retailers can effectively use our stock as their own, which is completely risk-free for them.”
Yet the grs offer goes further still, and in addition to convenience and consistency, retailers of any size can also benefit from the expertise of the grs team.
Concludes David: “We can advise retailers on what’s selling well. We don’t charge for this advice – it’s all part of the service we provide. We want to work in partnership with retailers to help them maximise every opportunity. After all, if they’re successful then so are we!”

Agency in action: a case study

Every aspect of the purpose-built grs logistics centre at Cold Meece has been planned with military precision, from the ‘flow’ of vehicles through the site to the development of bespoke technology and systems that help to automate the process, making it as quick and efficient as possible.
One major company benefiting from this market-leading combination of market-leading efficiency and expertise is de-fleeting some 300 vehicles every month through the site. With speed crucial in helping to drive as much value as possible from each vehicle and ultimately maximise returns, grs aims to have completed the entire process within just five working days – from the vehicles’ arrival on-site, through inspection and refurbishment to imaging and readiness for sale.
Following inspection, grs undertakes refurbishment on a fixed price basis, and also takes care of all the back-office work; this includes completing all the contractual and financial paperwork which ensures each vehicle can be sold.
“We prepare the vehicles for sale not only from a visual perspective but also from the contractual point of view,” explained Danny Hartshorne, grs Sales Director. “A lot of activity takes place behind the scenes, which takes all the hassle off the vendor’s plate. We work quickly but thoroughly on their behalf to ensure their vehicles are de-fleeted and made ready for sale as soon as possible.”
Yet the advantages of working with grs go further still: “We have an extremely efficient operation which couldn’t be achieved without our great team of people and also the substantial investment we have made in Cold Meece,” continues Danny. “We are also a relationship business, so we make a point of getting to know our customers communicating with them in the way that suits them best. Every aspect of our service is tailored to their precise needs.”
If you would be interesting in visiting the Cold Meece logistics centre for a guided tour to see the operation for yourself, please get in touch with Danny Hartshorne on 01743 281836.

David Grice: man on a mission

David Grice, Procurement Director at grs, is a man on a mission – to make life as easy as possible for retailers.

“Traditionally, many companies have considered buyers and sellers to be worlds apart – completely separate teams with little in common, which means they end up rarely speaking or even work in ‘silos’,” he says.
While that has never been the case at grs, David Grice, who is now responsible for overseeing both the company’s sellers and buyers, is ensuring they take a ‘one team’ approach to everything they do, ensuring they can add even more value to retailers’ businesses.
“This approach makes absolute sense, as our account managers are talking to retailers throughout the UK every single day, so they know what’s selling well and what the latest trends are at any given moment,” says David.
“As well as sharing this valuable market insight with other retailers to help them maximise their own businesses, it’s also essential that they share their knowledge with our buyers. This ensures that the stock they are buying is tailored to the needs of our retailers.”
According to David, the old-fashioned definitions of buyers and sellers are too rigid to be of much use in today’s rapidly changing market. “Our account managers – who in the past would have been defined as the ‘sales guys’ – are effectively working as buyers for our retailers.
“We’re keen to develop a partnership based on confidence and trust by taking the time to really understand retailers’ businesses, which enables us to offer advice based on their individual buying profile, while at the same time making suggestions additional stock which may be of interest.”
David Grice has also been overseeing a number of practical changes, such as making the regular stock lists more user-friendly; they are now easier to open and include an image of each vehicle.
But is this quiet revolution reaping rewards? “Only time will tell,” laughs David. “Our main focus is to share our market intelligence with our retail partners, to enable us to build further on all the things we already do well – we believe that’s what will make retailers’ lives easier and we will continue to work hard to achieve this every time we talk to them.”

The real value of residual underwriting

“It’s very easy to do things a particular way because that’s the way they’ve always been done,” says Julian Pullen, Procurement Manager at grs. “But when it comes to de-fleeting vehicles we would always recommend taking a look at other options that may help to reduce risk and increase value.”
One way of achieving this is to look at alternative, or additional, disposal routes as part of a multi-channel remarketing strategy, such as residual value underwriting.
“It can help to reduce risk, eliminate uncertainty and speed up the de-fleet process,” says Procurement Manager Julian Pullen on the benefits of this approach, which gives vendors such as rental, contract hire companies and other fleet operators a guaranteed amount for their vehicles when they come off-fleet. This enables them to forward plan with greater confidence.
“Residual value underwriting can give fleet operators far greater operational security, as we provide the underwriting and take the problem off their hands,” continues Julian.
“Let’s say an operator has 20 Honda Civics coming off-fleet in six months’ time. We could provide a guaranteed price for those vehicles today which transfers the risk from the vendor to grs, providing far greater financial security.
“It’s always a good time to talk to us about it,” continues Julian, explaining that many rental companies and fleet operators are likely to have brought new vehicles on to their fleets following the registration plate change on 1st September. “Residual value underwriting is so beneficial because it enables operators to buy their new fleet based on the value of their existing vehicles, and there’s much to be said for the security that brings.”
Such forward planning can pay dividends in the long run, especially when market conditions are uncertain or volatile, or when values are depressed. When faced with such difficult conditions it may appear tempting to keep running vehicles for longer than originally planned, yet the additional maintenance costs such as servicing or a new set of tyres – not to mention those costs inherent in having a vehicle off the road – are likely to outweigh any benefits.
There are other advantages too; for many operators space is limited, which can create problems when new vehicles are delivered. “The handover period can be tricky and we can help ease the fleet change process. We will collect vehicles quickly, freeing up parking space, and either settle finance agreements or deposit funds straight into the vendors bank account. An all together quicker and less painful process than alternative routes to market such as auction or direct vehicle by vehicle sale”.
For more information on the benefits of residual value underwriting, or to talk through your specific requirements, please contact Julian Pullen on 01743 281814.

Making life as easy as possible for retailers

Newly promoted to the position of Sales Manager, Dean Richards talked to re:market about his new role and how grs is aiming to make life easier than ever before for retailers across the UK.
“I always wanted to join a company where I’d have the opportunity to work my way up,” says Dean Richards, who arrived at grs straight from college six years ago. Starting out as a sales executive, he has indeed worked his way up, becoming an account manager in the south east before being appointed Sales Manager earlier this year.
Since taking on the role, Dean has overseen a restructuring of the six-strong team of account managers which has seen them move away from having geographical responsibilities, to looking after a selected portfolio of clients instead, wherever they may be based.
Explaining the changes, Dean says: “Building relationships is key both for us and our customers, as it’s vital that we really get to know them and understand their businesses. As a result, we have been looking to match account managers to customers, rather than taking a geographical approach.
“We are a relationship business as much as anything else, and by getting to know our customers even better will help make sure work in partnership with them to develop the full potential of their businesses.”
What this means in practice is that some retailers may recently have been introduced to a new account manager who they are also likely to meet soon, if they haven’t done so already. As well as encouraging the account managers to take to the road to meet with customers on a regular basis, Dean is also keen to invite retailers to visit grs – to make their own inspection of Cold Meece logistics centre, which is capable of storing up to 4,500 vehicles at any one time.
All vehicles are thoroughly inspected and prepared for sale at the purpose-built 36-acre site, which also features a state-of-the-art photographic suite where they are photographed inside and out on a 360 degree turntable. The high quality images are then posted to the grs website, which can then be used by retailers to order stock. The online resource can even become an extension of a retailer’s own stock, with the images helping to close sales up and down the country.
“Our aim is to make life easier for retailers and taking a look around Cold Meece is a great way of demonstrating how we’re able to achieve that,” says Dean, adding that retailers of any size are able to benefit.
“Whether retailers buy one or a hundred vehicles from us, they can all tap into our extensive stock and the expertise of our team, who can provide advice and guidance on makes and models which are selling particularly well at any given moment.”
He concludes: “What’s more, they can all be assured of quality, consistency and speed, as we aim to deliver vehicles within two days of receiving cleared funds. That’s important, as it enables retailers to have the vehicles they’ve bought on the forecourt and ready for sale as quickly as possible.”
If you would like to know more or are interested in visiting Cold Meece, please contact Dean Richards on 01743 281818.

Acting as an agent: the Cold Meece connection

“Any company de-fleeting vehicles is looking for three key benefits – speed, efficiency and value,” says grs Sales Director Danny Hartshorne. “Turnaround time is key, and vendors want a partner who understands their needs and has the flexibility and know-how to accommodate them”.

Recognised as a leader in the remarketing sector, grs has pioneered a number of different approaches which can all work together as part of a multi-channel strategy, including outright purchase and residual value underwriting, both of which have grown in popularity in recent years.

However, there is an increasing focus on a third route, which brings another set of benefits for vendors – where grs acts as an agent on their behalf.

“There will always be a place for auctions within de-fleeting strategies, but they’re only one of the options available,” continues Danny Hartshorne. “Working with grs on an agency basis means there’s no waiting for the next auction if a vehicle fails to sell first time. We have built up extremely strong relationships with some 13,000 franchised and independent retailers across the UK over the past 15 years, so we have a guaranteed market for de-fleeted vehicles.”

However, there is another significant weapon in grs armoury above and beyond its deep industry expertise and extensive retailer relationships – its 36-acre logistics centre in Staffordshire. The purpose-built facility is capable of processing 60,000 cars and LCVs every year, and has the capacity to store up to 4,500 vehicles safely and securely at any one time.

Continues Danny: “Our Cold Meece site adds another dimension to our agency service which is unrivalled, as it gives us the ability to de-fleet, inspect and refurbish vehicles without delay. The team there understands the importance of speed to our customers.”

An estimate for any refurbishment required can be provided as soon as the inspection is completed, or work carried out on a fixed fee basis, whichever suits the vendor best. What’s more, all vehicles are photographed in the new Cold Meece photographic suite which includes a 360 degree turntable and high quality digital camera equipment. Photographed inside and out against a consistent and unobtrusive background, vehicle details and images are uploaded to the grs website where they can be accessed by retailers 24-hours a day – making the company’s agency offer more compelling than ever.

In addition, management information can be tailored to meet individual vendor requirements, whether it’s ‘days to sale’ or ‘performance against the market’, ensuring accurate and consistent measures of success are provided.

“Partnership is at the core of the agency route,” continues Danny. “Our logistics centre helps give us the flexibility – and capacity – that’s required to work with vendors in the way that suits them best. It also enables us to move quickly on a vendor’s behalf, carry out value-driven refurbishment and achieve real speed of sale. It gives us a real edge on behalf of our customers.”

For more information on how working with grs on an agency basis could benefit your business, please call Danny Hartshorne on 01743 281836. 

Making a commercial difference

The strong performance of commercial vehicles has continued unabated throughout the first half of 2011 with low de-fleet numbers keeping prices correspondingly high. This has been accompanied by a distinct flight to quality, with the emphasis now firmly on condition and presentation over mileage.
“High quality, well presented vehicles have been out-performing book values significantly and we see no reason to believe that this won’t continue,” said grs Commercial Specialist David Fildes.
“Condition and preparation are two keys to achieving strong returns and are definitely more important than the distance a vehicle has covered. On the other hand, poorly presented or poor quality vehicles are consistently selling for a lower percentage of book value. Without doubt, today’s market is all about quality, more so than ever before”.
Car-derived and medium sized vans such as the Ford Transit and the Vauxhall Vivaro are proving particularly popular, and grs has noted another interesting trend in 2011 – a strong growth in demand for different colour and higher spec vehicles boasting features such as air conditioning and parking sensors.
While seasonality may account for the importance of features such as air conditioning as buyers look for additional comfort during the hot summer months, this doesn’t explain the growing demand for different colours.
Ben Harvey, Commercial Vehicle Team Leader explains: “At first sight, this may seem hard to explain. However, vans can be quite an emotional purchase and for a small business they can also be a valuable shop window. When money is tight businesses may not be spending so much money on traditional advertising, but they do appear to be investing in the appearance of their vehicles, which can say a lot about a business to potential customers, as well as acting as a permanent mobile advert.”
Continued Ben: “That’s why good presentation is so important in today’s market, along with anything that helps a vehicle to stand out from the crowd, such as a different colour and metallic paint too. Add to that some professional sign-writing and businesses have a really valuable opportunity to advertise their business on the move”.
With this in mind, commercial vehicles – especially those with some additional bells and whistles – should be borne in mind by retailers, to help make their forecourt stand out and to tempt customers through the door.
The number of commercial vehicles sold by grs has risen ten-fold over the past five years, with more than 2,000 sold last year alone. This year has started strongly too, as more and more retailers realise the opportunities they can present.
Retailers looking to dip a toe into this market can call on the expertise of the grs team who are always on hand to talk them through the process and provide advice on the most popular vehicles and specification at any given moment.
“The shortage of high quality, well presented commercial vehicles makes them a terrific profit opportunity. Retailers who haven’t traditionally focused on this area might want to consider putting one on the forecourt to test the market and wet the appetite of customers,” said Ben.
“Retailers can treat grs stock as their own, offering their own customers access to the entire grs database online, making it entirely risk-free for them. And we don’t charge retailers a penny for buying from us – the price they agree is the price they pay for the vehicle.
“We really do make buying trade vehicles as easy as possible”.