How will small independent dealers, those perhaps least able to withstand big business shocks, fare in this brave new sales agency world? We look at the future ahead for the small, family-owned, car dealer
Interestingly, both have grown on the shoulders of smaller, independent dealers, many of whom have represented them for decades. Certainly,and which now stands at around 5.5% , has little to complain about.
At the other extreme, Suzuki has a 1.5% market share with annual sales of 35,000 but Dale Wyatt, the company's director of automobile, insists this position suits the brand's business model perfectly."Annual sales of more than 50,000 is the tipping point when a brand's focus shifts more to distribution and processes, and away from its dealers. How you deliver these business needs without alienating your dealers is critical.
“On the other hand, each one is a reflection of its owner and as a result the businesses each have a unique personality, a fact that resonates with our aim to be the trusted brand for those who are proud to be different. When you are a sub-1.5% brand you have to differentiate yourself and we do this through our dealer and customer relationships."
It seems that at least within Suzuki's ranks, the future of the small, independent franchise dealer is assured."If I want to paint the showroom pink this afternoon, I can," says Stephen Ody, co-founder and managing director of Tracks Suzuki of Exeter . He's joking, I hope, but his point is that being the owner of an independent business gives him the freedom to make decisions that in other circumstances might have to be discussed with a board.
Ody started Tracks 30 years ago with two people and £65,000 from mortgaging his house. Today, he sells around 500 new Suzukis across his two branches each year and last year his business was crowned Suzuki dealer of the year."Suzuki is a friendly company and easy to do business with," he says."They're realistic about what a business like ours can achieve. We don't have anyone demanding we build a multi-million pound showroom.