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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.