cheer up

[little spender 1]

 

First of all Hello

been reading for a good while over a year probably and all I read lately from you guys is doom and gloom

I was wondering is there any success story's out there. you know the type of thing started with ten grand now making a cracking living

or started with 4 cars now have 30

anybody loving it and wouldn't want to do anything else

[jimreidvehicle 255]

6 hours ago, little spender said:

 

First of all Hello

been reading for a good while over a year probably and all I read lately from you guys is doom and gloom

I was wondering is there any success story's out there. you know the type of thing started with ten grand now making a cracking living

or started with 4 cars now have 30

anybody loving it and wouldn't want to do anything else

Hahahaha BEST heading I've seen on here for months, well said!

Yes, things are tough out there but yes if you keep a positive attitude you will succeed

We started as a man and wife team ONLY back in Feb 2003 with 12 cars, 14+ years later, we now have 13 employees, Turnover £7M per year and have a real life successful 'family business' . In 2009 when the Financial Market collapsed we moved into brand new purpose built premises, when the Oil & Gas Bubble ( we are based in Aberdeen(shire) Oil Capital of Europe)  burst in 2014 ( to current day) we changed our business model to suit and have grown year on year.

Meet Challenge's head on , but if you feel you need help them Join The IMDA , launching on 5th of November! 

I'm living the dream!

Jim

 

 

[sparky 274]

44 minutes ago, jimreidvehicle said:

Hahahaha BEST heading I've seen on here for months, well said!

Yes, things are tough out there but yes if you keep a positive attitude you will succeed

We started as a man and wife team ONLY back in Feb 2003 with 12 cars, 14+ years later, we now have 13 employees, Turnover £7M per year and have a real life successful 'family business' . In 2009 when the Financial Market collapsed we moved into brand new purpose built premises, when the Oil & Gas Bubble ( we are based in Aberdeen(shire) Oil Capital of Europe)  burst in 2014 ( to current day) we changed our business model to suit and have grown year on year.

Meet Challenge's head on , but if you feel you need help them Join The IMDA , launching on 5th of November! 

I'm living the dream!

Jim

 

 

Jim, there's a good reason why you are the dealer's dealer so just for fun. Looking at the job as it stands now, if your were to start again now do you honestly think that in 2031 you would employ 13, turnover £7m etc?

I usually think my team can come back from two nil down, that I can shout level par after dropping 3 shots on the first and if I wasn't married I could pull Tess Daley, but as I'm sat here looking at a pitch of empty spaces again knowing that cap clean is not going to be enough to replace them again (January is putting the feel of god in me already) it really does feel that one is peeing in the wind and that the dream has been lived.

[trade vet 703]

57 minutes ago, jimreidvehicle said:

Hahahaha BEST heading I've seen on here for months, well said!

Yes, things are tough out there but yes if you keep a positive attitude you will succeed

We started as a man and wife team ONLY back in Feb 2003 with 12 cars, 14+ years later, we now have 13 employees, Turnover £7M per year and have a real life successful 'family business' . In 2009 when the Financial Market collapsed we moved into brand new purpose built premises, when the Oil & Gas Bubble ( we are based in Aberdeen(shire) Oil Capital of Europe)  burst in 2014 ( to current day) we changed our business model to suit and have grown year on year.

Meet Challenge's head on , but if you feel you need help them Join The IMDA , launching on 5th of November! 

I'm living the dream!

Jim

 

 

Hi Jim

You might be living the dream,but are you making any money ! My bet is that you are not doing 1% of T/O

[DBDlloyds 18]

Welcome Little Spender,

Great subject.....

Started back in May selling from home and finding it challenging due to the endless dynamics involved in trading cars... 

I avidly log onto this forum daily and think it is brilliant. All I will say you can leave it feeling really positive due to the excellent posts or it can sometimes leave you feeling a little bit negative as we all vent our frustrations openly. 

For me it is a lifeline as I am used to working as a team and I do miss the opportunity to bounce ideas around with people that understand the highs and the lows. This forum has certainly gone a little way to giving me this. It seems strange as I have never met anybody on the forum but the same names post daily and I feel I know them already, it is great to see how the more experienced guys get on on a daily basis. 

There is defiantly money to be made in this business and being positive plays a major part in helping you to achieve.....  BUT as I said above it is mainly about taking calculated risks on the cars you buy to sell. For me this isn't easy as I have never gamboled in my life ha ha.

I wish you all the best,

Regards Dean. 

[BHM 994]

God knows about anyone else’s finances but to me it’s all about the real profit, not gross or T/O. 

There seems to be an awful lot paying out on rent, stocking loans, insurances, staff, rates, big VAT bills with every penny declared & driving a bit of flash on the ‘never never’. Good luck to them but with those headaches if I wasn’t a multi millionaire I’d be wondering why I was working my arse off.

[Mojo121 229]

Here's what I think about the car trade, at the lower end of things (small dealer 30 odd cars): You'll never become rich in a sense you won't have wealth that people envy and you won't make the big money. I live comfort and security, so I don't care for flash things. What you will have is nice food in the fridge, a nice car to drive around in, a holiday a year and a little cushion to fall back on if things go a bit slow.

I certainly don't love it. It's fun at times but lacks real challenge, it's challenging in a sense of running around trying to buy things but that isn't massively mentally stimulating. The same with some customers- they're irritating, wrong kind of challenge.

For me, this country is competitive in every market at the moment so until I see a decent opportunity elsewhere this will do... most importantly I'm still learning! 

[jimreidvehicle 255]

1 hour ago, trade vet said:

Hi Jim

You might be living the dream,but are you making any money ! My bet is that you are not doing 1% of T/O

Yes we are making money, we also re invest too. 

1 hour ago, sparky said:

Jim, there's a good reason why you are the dealer's dealer so just for fun. Looking at the job as it stands now, if your were to start again now do you honestly think that in 2031 you would employ 13, turnover £7m etc?

I usually think my team can come back from two nil down, that I can shout level par after dropping 3 shots on the first and if I wasn't married I could pull Tess Daley, but as I'm sat here looking at a pitch of empty spaces again knowing that cap clean is not going to be enough to replace them again (January is putting the feel of god in me already) it really does feel that one is peeing in the wind and that the dream has been lived.

I'm almost 48, so the answer would be 'no' I wouldn't start again today, but can it be done again by someone else, of course it can!

[Rory RSC 596]

12 minutes ago, jimreidvehicle said:

Yes we are making money, we also re invest too. 

I'm almost 48, so the answer would be 'no' I wouldn't start again today, but can it be done again by someone else, of course it can!

Question for Jim and others What would you do differently ?

 

Good thread actually. I think setting up any business and making it profitable is hard. It requires loads of hard work and a lot of people are not cut out for it. It does mean sacrifice and does mean not going to such and such family event, not taking a holiday and not paying yourself. There is no other way to it.

We are around 4 years in with a constantly increasing profit with continued reinvestment in our business and our small workforce. We don't pay others to do what we can do ourselves. I enjoy what I do and genuinely like this industry. It is tough to a degree but so is any business. Its not as tough as what I used to do before this. I think its all about playing the long game and setting up the right infrastructure to allow you to grow. Do as much in house as possible. 

 

 

[It's me 615]

35 minutes ago, Rory RSC said:

Do as much in house as possible. 

 

 

this is exactly what i try to achieve here,there's basically nothing we farm out because done in house you know its done right,this is where repeat custom comes in which i equate to free advertising,most customers would rather lean on a bar and slag rather than say what a great car they bought,i really try not to give them that chance

im still small i prefer it that way,pay everything out of my pocket live modestly and once home will neither answer my phone after 7 or indeed the front door,home time is home time and ive no interest in driving a maserati,i will get that kick at the nec next weekend

[trade vet 703]

When I started my first pitch,the job was easy and very lucrative.Now,most people with pitches carry a lot of debt and their profits are next to nothing.So unless I had some niche market idea,I would not start up again.

[James01 21]

Talking of pitches I posted a few months ago that we were considering giving up our roadside pitch for an industrial unit type set up.

We have now decided to do so after being here for around 5 years.

I do not know about everyone else opinions but I just cannot see that they have the same benefit that they used to at the price that one has to pay to rent them.

Has anybody else done a similar move and how do you find things? I must say I am most looking forward not having to be sat in a showroom staring out the window waiting for a customer to come in 6 days a week.

 

 

 

 

[Arfur Dealy 823]

James, what percentage of your sales are walk ins ? 

[James01 21]

Over the last 3 months we have sold 5 cars to walk ins, so I would say less than 10% of our sales are through passing trade.

[trade vet 703]

32 minutes ago, James01 said:

Over the last 3 months we have sold 5 cars to walk ins, so I would say less than 10% of our sales are through passing trade.

Excuse me James,if you have a busy roadside pitch with stock displayed outside as well as a showroom and have only done 5 to passing trade in 3 months,some people may say that is a management problem.Anyone else agree !

[Arfur Dealy 823]

12 minutes ago, trade vet said:

Excuse me James,if you have a busy roadside pitch with stock displayed outside as well as a showroom and have only done 5 to passing trade in 3 months,some people may say that is a management problem.Anyone else agree !

This is interesting, because what percentage of people walk past a sight on the way to the Post Office for some stamps..... see a car on a forecourt and then buy it, not that many ? Surely, location, location, location is the key......

To me, the web is my forecourt 

[BHM 994]

I’d opine that it’s obviously not a good site.

[It's me 615]

is it in a radio rentals area? ie a brighthouse street

no knickers no money

 

i would move too

[James01 21]

I have to say we are in a very good location but as Arfur said how many people trawl around forecourts now in search of the car they want as oppose to searching on the net?

Unfortunately for us not enough to justify the £70K rental we pay per year.

It may be the fact we don't sell much under £7-8k so do not fall into the local cheapie bracket that may attract more passing trade.

 

 

[trade vet 703]

1 minute ago, James01 said:

I have to say we are in a very good location but as Arfur said how many people trawl around forecourts now in search of the car they want as oppose to searching on the net?

Unfortunately for us not enough to justify the £70K rental we pay per year.

It may be the fact we don't sell much under £7-8k so do not fall into the local cheapie bracket that may attract more passing trade.

 

 

£70k rent,bloody hell ! I think I may be right.If you gave me a roadside pitch for 25/30,without any advertising,I could generate 3 or 4 every week having established what the punters actually want.Display and kerbside appeal is the key and there are still plenty of punters around who buy on impulse......I think you should move James.

[BHM 994]

Having internet presence is a damn site more important than location. 

A good pitch should pay for itself but perhaps it ain’t good or your stock’s wrong for your area. Either way £70K per year is a lot to cover - you’ve got to flog a few just to break even on your rent (as I’m sure you’re aware).

As a small family business working on an appointment basis I say enjoy some extra free time & not have the headache of massive overheads anymore. When it’s quiet I sit on my arse in the warmth of my own home, not sat staring out of a Portacabin window. At this point I should add I’m prone to laziness 

[sparky 274]

70k! Holy smoke batman. I know up north things are not the same but even so, when you compare that to that pitch Mr C listed last week. Is it in Kensington?

[Pip 12]

15 hours ago, little spender said:

 

First of all Hello

been reading for a good while over a year probably and all I read lately from you guys is doom and gloom

I was wondering is there any success story's out there. you know the type of thing started with ten grand now making a cracking living

or started with 4 cars now have 30

anybody loving it and wouldn't want to do anything else

I started trading in 1995 and looking back it was fantastic days and I made plenty more than I do today. I use to buy lots from the block but now I just stand there in disbelief at the sky high hammer prices. A little while back I believe the beginning of this year I watched an Audi A4 Tdi SE model 04 plate 50000 miles 1 owner sell for 5400. Yes 5400. 

I have sold two so far this week a 12 plate Corsa I had to give blood for at the block and a Toyota Aygo I give 450 over trade. The Corsa I had to pay so much for just to get some stock but shock tonight as it's just gone for a 25%  profit. 

Times are hard and I feel it will get worse. You do get a great feeling when you sell one though and you couldn't get a job that's pays so well. 

[Arfur Dealy 823]

We all moan, but Pip's right (welcome Pip), we earn very good money compared to the UK's average 2017 wage of £27600 Gross. 

[trade vet 703]

28 minutes ago, Arfur Dealy said:

We all moan, but Pip's right (welcome Pip), we earn very good money compared to the UK's average 2017 wage of £27600 Gross. 

While I do agree,there must be a lot of established pitch operators out there who because of their liabilities stocking/ bank loans/overdrafts and undisposable long lease hold premises,they are unable to downsize or even escape from this  business.I am sure a lot of these people would settle  for a lot less than the average wage if they were able to change their circumstances. I can think of several who 'talk the talk',love the trade etc but they are in their 70's and still working hard.Unfortunateley,Companies House tells the true story about their business and then you understand.