000736 - Phoenix 23/1/09 18:21 Page 1
EXECUTIVE
REPORT
Gary Derraven (right) has established Phoenix Hire
& Sales in a ready-made 3,500ft
2
unit in Cwmbran.
Phoenix rises
Five years after he sold his original business, Gary Derraven is developing another
hire operation in Cwmbran, south Wales. Robert Aplin reports.
Having joined a local Cwmbran-based tool hirer as a YTS trainee struggled to open accounts with some previous suppliers, we were
when he left school in 1978, Gary Derraven spent the next 10 years delighted at the response of others, including Youngman, which gave
learning his trade in hire. In 1988, he joined Kingfisher, a fledgling us a reasonable credit limit, consignment stock and prompt deliveries.
construction equipment sales company, and opened its first tool hire More importantly, customers love Boss towers. We have standardised
outlet in early 1989. By the time I interviewed Gary for an article on narrow and standard width towers, which have interchangeable
published in March 2002, he had built Kingfisher Hire & Sales Ltd parts, and these satisfy all our needs. “Bosch was another supplier
into a significant hire operation in south Wales with six outlets from that was happy to deal with us again. Other key ranges are Belle
Newport to Bridgend. mixers and compaction equipment, with Norton our preferred supplier
of floor and bench saws. At Kingfisher we specialised in diamond
In June 2003, however, Gary sold Kingfisher to Speedy because blade sales and, having met Premier Diamond Products at last year’s
“they made me an offer I couldn’t refuse” and spent the next three Executive Hire Show, we were impressed with their friendliness and
years with the national hirer. “I worked with a good team of people, willingness to do business with us. As a result, we have appointed
was impressed by their enthusiasm and professionalism and left PDP as sole supplier.”
amicably in June 2006, with no intention of getting back into hire,
preferring to set up an asset finance business. “After 18 months,
Developing new opportunities
however, I was bored as there was no ‘buzz’ and at Christmas 2007, In response to the changing times in hire, with, for example, low-cost
I decided to get back into tool hire. Retaining the bird theme, I settled tools being purchased by many builders and DIY enthusiasts,
on the name of Phoenix, the mythical firebird that rises from the Phoenix has developed new opportunities in the form of equipment
ashes, as an appropriate metaphor for the new venture and, sales and customer repair. “Power tool sales had always been part of
in January last year, started looking for premises in my home town the Kingfisher offering and, at Phoenix, we have now added the very
of Cwmbran, which was the centre of my previous hire experience.” acceptable Portwest range of hi-visibilty clothing and safety boots to
support our power tool sales activity. In the past, we had wanted to
Ready-made tool hire outlet
undertake customer repairs, and we are now developing this niche
“I drove around the town looking for a suitable location on an industrial market. Not many other hirers offer repairs and power tool dealers
estate and found a ready-made 3,500ft
2
unit, with a 1,000ft
2
normally have to send tools away, resulting in a slow service for
mezzanine level, that fits our purpose perfectly. We moved in on 15 customers. We provide clients with a quote for repairs within 48 hours
March and opened for business on 7 April. I approached Jason Gray and, subject to the availability of spares, we complete the job within
to become Manager and he was happy to renew our relationship, 48 hours. We can also undertake this work on-site, as well as in our
having worked for Kingfisher for six years. Mark Sanders, who is own workshops. Our approach to customers is to let us become your
Workshop Manager, had worked for Kingfisher for five years, and was ‘plant manager’. Rather than deal with a dozen different contacts in
also prepared to join the new venture. Their experience is the best three national hirers, you can channel all your business to one point.”
around in south Wales. Our third full-time member of the team is my
son, Jason, and we plan to add a driver during February.” Gary Repairs now account for 20% of Phoenix’s turnover, with hire and
invested £25,000 on sales each representing 40%. Nine months into Phoenix, Gary is
its opening stock, “extremely confident about the prospects for 2009. We went into profit
which rose to last July, compared against our predicted month of this February.
£110,000 by the end We are opening new accounts at the rate of five per week and plan
of 2008. He to open a second outlet in the Cardiff area, hopefully by April, once
envisages that this we have identified premises. This will greatly increase our credibility
will double during with our customer base in south Wales. We are increasing turnover
this year. One of each month even in this downturn and we look forward to greater
Phoenix’s key growth as the economy comes out of recession.”
•
ranges is Youngman
The Phoenix team line-up – “the best around in south Wales.” towers. “Whilst we
www.phoenix-hire-sales.co.uk
25
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60