From January 1, Coventry-based Motaquip is reducing the invoice price of parts on a wide range of popular products, including batteries, brake pads, bulbs and wipers. Spark plugs are not included. Motaquip hopes the cuts will help grow its £25m turnover by increasing volumes and attracting new customers.
To help independent factors set up business Motaquip is also launching a new-starter initiative. This offers a complete package of business support to individuals looking to start up their own factor.
Once premises have been found, Motaquip can offer computer systems, deals on stock, and delivery vans through Peugeot. The factors remain completely independent and there is no contract or purchase agreement with Motaquip. There are currently about 20 businesses on the scheme and many are successful, although the company admits it does not have a 100 per cent success rate.
The strategy of price cuts and support is part of Motaquip's bid to take on large buying groups, which have been a growing threat over the last 18 months. Vince Clisham, Motaquip marketing manager, says some of the larger groups have had a positive influence on the market place while others have had a negative impact.
“For the independent motor factor dealing with the multitude of suppliers imposed by buying groups, there may be no consistent brand quality or level of service,” he says. “With the imposition of suppliers, what meaning does the independent tag have? We even have a situation now where there are buying groups within the buying groups as the search for lower product cost continues.”
Motaquip has one brand covering 25 product groups and offers quality assured by parent firm PSA Peugeot-Citroen. The group has 200 sites but it is looking to fill another 50 open points and increase coverage across the UK next year.