32 • Dealer profile Speedy Witbank has achieved growth in recent years despite stiff competition. Speedy does it! Johan Grobler
Dealer profile • 33 On the face of harsh economic times, quite surprisingly, one fitment centre in Mmpumalanga’s fastest growing city – Witbank – is experiencing unprecedented growth. Former farmer and businessman, Johan Grobler, attributes this to his long-standing track record in the community as well as to his ability to read the marketplace and react quickly to changing market conditions. Service packages exclusive to the Speedy Group of companies (now numbering 140 across the country), such as the ‘Miles More’ programme which offers motorists free tyre puncture repair, tyre rotation and rebalancing for the duration of the tyre’s life, have gone a long way towards attracting customers to his doors. Add to this his decision last year to lower his GPs in reaction to the economic crisis, and Johan says what he’s lost in margin he’s made up for in volume. More important, Johan is a sterling example of the adage that when it comes to purchases of any kind, people buy people. His father was the Mayor of Witbank, his wife is a respected member of the community courtesy of her position of Science teacher at the local high school, while Johan is well-known to the residents of this predominantly mining community for his previous, 15-year involvement in two service stations which he owned and managed. As a keen sportsman, Johan is also passionate about his golf, and tennis (his team won the trophy four years in a row for the Waterberg District), something which stands him in equally good stead with the city’s residents. Not taking anything for granted, Johan has also made a point of building up a strong rapport with the motor dealerships in his area, whose support he continues to enjoy, despite the presence of numerous rival shops on his very own street. Says Johan: “I’m lucky to have the loyal following of so many Witbank residents. Notwithstanding, I fully recognise that we need to deliver on our service offering if we are to retain our clientele.” Retaining customers probably rates as his biggest challenge in the current economic climate where a mere R5.00 can make all the difference between gaining and losing a sale. Unlike most Speedy outlets for which tyres make up a smaller portion of the business, Johan’s operation boasts a 50/50 split between tyres and underbody components such as exhausts, shocks, batteries, brake pads, bull bars, tow bars and nitrogen in tyres. Explains Johan: “Selling tyres is a lot easier in that it helps to draw customers to your doors. It’s also the ideal time to pick up on secondary sales resulting from worn shocks, brakes and the like.” Interestingly too, contrary to what has become the norm due to market trends, Johan’s exhaust fitment side to the business is buzzing with three of his 12 fitment bays dedicated exclusively to the exhaust portion of the business. Says Johan: “There’s only one other company offering an exhaust service in this city which probably accounts for our success in this area.” To add to his product range, Johan is also considering introducing a suspension service to further provide his loyal customers with yet another important service at a reasonable price. Adds Johan: “Consumers are being quoted outrageous prices on tyres, towbars and suspension systems in particular, and perhaps our willingness to accept their financial constraints owing to the economy, also accounts for the fact that our shop is close on ¾ full at all times. “Add to that the ongoing support from Bridgestone and Speedy’s head office, and we’re luckily well placed to weather the current storm.” The immediate focus is on providing customers with a good shopping experience that keeps them coming back as well as preparing for the future boom, which according to Johan, is inevitable given the proposed growth of the region. Claims Johan: “Eskom’s second power plant opens in Witbank next year and this should draw thousands of new people to the region. And the development of Ernie Els’ golf estate, as well as other similar projects, should spur further growth in the not too distant future. The boom times will return, and new tyre shops will open in response to this. We must do everything in our power to ensure we’re ahead of the game as we prepare to take on new competitors head on.” Plans to expand his operation are on the cards with the prospect of additional stores in and around Witbank, which should also serve to secure current and future market share, particularly if Johan sticks with his current formula which arguably, is reaping dividends.
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