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Tax free sales ‘underexploited’ by smaller manufacturers

Smaller manufacturers and their dealers are missing opportunities for tax-free and diplomatic service fleet sales because they have a poor understanding of the market.

Network Automotive believes it is a lucrative sector for larger manufacturers, especially prestige brands, and that there is no reason others should not pursue the same kind of business.

Managing director Colin Bruder said: "If you type 'tax-free fleet sales' into Google, you can see that a number of prestige manufacturers take this kind of activity pretty seriously from the space it is given on their web sites.

"Smaller manufacturers and their dealers often have the product to exploit this market but not the expertise, and it something they could profit from."

Bruder added that the administration, taxation and legislation surrounding tax-free sales was relatively simple, and most of the additional knowledge required was marketing based.

He explained: "Most tax-free sales are made to British armed forces serving abroad while diplomatic sales are made to UK and overseas diplomats.

"These are not necessarily easy target groups to reach but there are several tried and tested marketing techniques that have produced good repeat results. These target customers are often aware that they can buy a vehicle tax free and it is then a matter of getting your products in front of them."

Bruder added that Network had been helping a number of manufacturers to win tax-free and diplomatic business for a number of years.

He explained: "Our experience is that manufacturers in virtually all sectors of the market can make worthwhile sales in these sectors. It is a matter of putting a structured sales and marketing plan together and pursuing it."

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