Diversify to cruise through crunch

‘Retail motor sector businesses could face a challenging few months due to the prevailing economic climate, so it is more vital than ever to make sure you are getting the most from your business,’ according to Ray Holloway, Director of Independent Membership within the Retail Motor Industry Federation (RMIF), speaking to independent garage members this week.

Holloway continued: ‘With interest rates likely to remain at the current high level for the foreseeable future consumers may be cautious about making major cash outlays, such as a buying a vehicle, or undertaking major work on an existing one. Where possible, many are likely to wait and see how the situation plays out through the summer. In this kind of situation, diversification could be a good way to help continue the growth of the business.

‘Options include add-ons to key services, such as more extensive valeting, or seasonal check ups for vehicles. Both can be offered for a nominal fee, and can be a useful income generator.’

Increased investment costs, and belt-tightening by banks could mean that businesses still see reduced cashflow in the short term, but Holloway believes that firm financial controls and use of all possible amenities could prove make a big difference: ‘Businesses must make sure that they are getting the best rates from banks, and that they use all measures available to them to them.

He added: ‘Using RMIF membership benefits such as the member helpline, deals on banking and card processing, and a number of other offers on equipment and services will be crucial at this time.’