Case Study: Express Factors Franchisee

When longer service intervals started impacting on the parks business at Paynes of Hinckley, the addition of an Express Factors car repair franchise operation gave a welcome boost to the tune of £720,000 a year.

Three years ago, parts manager Russell Astley realised something had to be done to stop the decline in the parts business at Paynes of Hinckley and saw Unipart’s Express Factors as the answer.

“Before we took on the Unipart business,” he explains, “we were just a main Ford dealership with a Ford Parts Plus business that dealt with the local independent motor trade outlets. We looked at the factor business as a better way to sell to other brands and to the local independents.

Additional van

Due to increased demand, we have added a third van since becoming an Express Factor, but we haven’t had any other extra overhears. We still use the same number of staff, and we already had premises that were big enough.

“A lot of the business is about perception to the IMTs. They believe that factors are cheaper than main dealerships, and only use the franchised sector for the few parts that they can’t get elsewhere. If they know you as a factor company, they’ll use you more.”

To prove the point, Russell says: “Previously we were trading at about £200,000 a month, but since adding Unipart we’ve added a further £60,000. We are now currently retaining a greater gross profit margin through the factoring operation than we do selling Ford parts.

Whole hog

Russell is adamant that it’s the approach to the business that had made it a success. “The thing you must do is go the whole hog,” he says. “You’ve got to carry the range of stock, because if you get a call and you’ve not got the part they won’t call back.

“You’ve also got to better the service offered by dedicated factors, or at least equal it.”

In this case, that means guaranteed one-hour delivery within a four-mile radius, “although it’s usually 20 minutes,” adds Russell.

The decision to start supplying a wider range of parts to other franchised retailers had also worked well. Paynes of Hinckley now supplies parts for other brands being worked on by those dealerships that preciously only took Ford parts.

All about volume

Russell says he has found working with Unipart straightforward as well:

“Dealing with Unipart is very similar to dealing with a manufacturer in that it’s all about volume. However, with Unipart it really is a partnership.”

Paynes is one of the five members of an Express Factors panel that meets regularly with Unipart to discuss ways of improving the business.

“Unipart is responsive to our suggestions because they know we know out customers,” concludes Russell, who is now looking to grow the business in future with 24-hour opening and by supplying to breakdown services.

Your action plan:

• Ensure you carry a full range of stock
• Research what local rivals are doing and offer a better service
• Market yourself as an independent
• Pass on customer feedback and ideas