CROSSHIRE UNDERSTANDING OUR MARKET


The nearest general builders’ merchant outlet to my home happens to be a branch of one of the large multiple organisations that offers to hire equipment from many of its branches. I was waiting in the aforementioned depot’s showroom one morning recently when the punter ahead of me enquired about hiring a concrete mixer. The staff on duty apologised and said that the only people who were trained to hire out kit were not on the premises, and could he please come back in an hour or so.


A little later, whilst my vehicle was being loaded with my purchases, I asked the yardman about the hire tools offered at the depot. His comments revealed that the hire kit that the merchant’s HQ insisted on being placed in the depot was regarded as a pain in the posterior by the staff. He went on to complain that it was alien to the operation’s primary culture and it simply caused a distraction from the staff’s normal duties. His own particular beef was that he did not want to exert himself cleaning dirty equipment when he could be driving a forklift!


Ever since the original tool hire boom more than 30 years ago, various commentators have predicted that it would not be long before most builders’ merchants would add tool hire to their depots, with comments such as “footfall”, “one stop shopping” and “purchasing power” being given as logical reasons why the merchant sector would become a leading player in equipment hire.


Over the years, a number of merchants have dallied with hire. Some of them, like my local outfit, have tried to create in-house departments within their existing depot network, while some others have invested heavily in creating a branded image with some standalone depots, in addition to using existing in-store space. In a few cases the chosen route has been to take over an existing successful company and integrate it with whatever they already have.


36


However, what is becoming clear is that it simply does not work, particularly when market conditions become challenging. It therefore comes as no surprise that Wolseley has decided to sell Brandon. It did not sit easily with its main business. I am sure that Brandon will be stronger for its independence from big city politics, and I wish the operation well in the future.


Of course, it is not just builders’ merchants that have faltered in our market. Large multinationals have occasionally decided to invest in our industry and most have eventually given up. Unfortunately, they have often tarnished what were previously good companies in the process, as witnessed by the present state of Hewden.


Last month’s Forum reported Wolseley’s sale of Brandon and its withdrawal from the hire industry.


There is no other industry quite like hire. The lessons of the past have proved that customers are more likely to get the most professional service from specialists who genuinely understand the market. Those specialists include some of our largest national hire companies as well as hundreds of privately owned outlets. The most successful hire businesses are run by enthusiastic staff, extending


from the owner or the corporate board, right down to the fitters and drivers. Many of the staff working for large hirers were trained by the likes of yours truly and have moved on from small companies to bigger ones in order to further their careers.


Equally, many fine small independents are owned by former directors or managers of large hire groups. It is this mix of expertise that gives our industry strength and, in most matters, we normally all sing from more or less the same hymn sheet. The one area where I suggest that we should all do better is in our pricing. I know of some very silly hire rates being quoted by both large and, yes, small hire outfits. It appears that many of us are giving a premium service at a budget price. Why?


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