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.”