Clubbing together: ERF and its distributors
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This association protects the profitability of the Sandbach firm and its distributors, as the chairman explains to Tim Blakernore
IF RON HOLMES had not chosen to commit himself to the transport industry he might have had an equally successful career in the diplomatic corps. That is the impression one gains from a conversation with him.
He is an eloquent, softly spoken man who could probably maintain his composure while many others around him were losing theirs. While it is difficult to imagine him ever thumping a table, I have no doubt that he would argue long and hard over any point of principle which had his support. Moreover, like al most all good speakers, he is an attentive listener.
As chairman of the ERF National Distributor Association Ron Holmes needs all these qualities, and no doubt they frequently help him to run his own business — S and B Commercials, of Welham Green, near Hatfield, Hertfordshire. Formerly part of the Lex Service Group, and then known as Sellers and Batty, this ERF distributorship was bought by Ron just over a year ago, and shortly afterwards a MAN-VW franchise was added.
The transition from managing director to owner and managing director was, in Ron's words "a fairly profound one", but clearly he does not regret his decision to go it alone and is proud of the fact that his company has made a profit in its first year as an independent.
Equally clearly he has no regrets either about having accepted the chairmanship of the NDA. He describes the association as having been "active since 1981", though his appointment as chairman was only ratified in 1982. There is a strong hint of understatement in his comment "it took us quite a long time to get it [the association] going". But he never expected it to be easy."When you have as many diverse characters as are to b found among the principals c ERF's 25 distributors there i bound to be a certain amount c difficulty in forming one body t represent them. Some who ha long-standing relationships wit ERF were wary of what they sal as a possible delegation of the negotiating power, and at fin there was some opposition t the idea from one or two ERF's own management team.'
Though Ron reckons that n one person should take credit for the idea of forming distributor association — "it inq more a groundswell of feelin coming from a number of disti butors" — he is full of praise fc the work of John Thurston, mai aging director of South Wal( Commercials and chairman i the MAA National Truck Cor mittee, who drew up the NDA constitution.
This document, it seem helped greatly to dispel tt doubts in the minds of thoi who remained sceptical abo the association's objectives.
It made it clear, for exampl that "recommended proceduri are not intended to replace b to supplement and improve ti normal channels of consultatic and communication betwei ERF and individual ERF distrib tors". There was unlikely to I any argument with the associ tion's basic aim which is the pi tection of the profitability of E and its distributors.
The NDA has a tenor of i formality which is the way RI Holmes believes that ERF dist butors wish it. In his view "it more like a club than an assoc tion" and he clearly does r mean that as any kind of imphi criticism. The associati general
3ets1 once a quarter and a )ical attendance figure is beeen 30 and 40, consisting of aributor principals and sales .ectors.
"We try to arrange our meetgs to coincide with dealer prin)al meetings organised by IF," says Ron. "The usual ocedure is that we get torther the evening before an 1F-arranged meeting; that way a save time and unnecessary pense. When our discussion is rnplete, if we have any points at need taking up with ERF, we II in the appropriate ERF direcrs to discuss the problems." What sort of problems are scussed at the NDA meetings? The subjects range from techniil product problems — most iF distributor principals have a chnical background — to comercial and financial ones," !vs Ron.
He recalled that at the last eeting one distributor had )mplained that a review of his ;counts had revealed that )me of his worst debtors were How ERF distributors, which lust have caused one or two faces in some corners of the
However, Ron insists that the ieetings are generally "very -nicable" even though the as)ciation does not steer clear of Jch contentious subjects as the ailing of vehicles outside de
signated territories and discount levels.
Often the association's influence on key decisions at ERF will not be obvious to either ERF customers or even distributors' staff, such is its low-key nature.
At last year's Birmingham Motor Show, for example, the NDA was instrumental in deciding which models should be displayed and this, says Ron, was one of the few occasions on which a vote had to be taken at an NDA meeting. "Usually a consensus emerges," he told me.
The association's influence does not extend to the appointment of franchises and Ron did not foresee there being any need for that. "ERF's current main distributors have been around for a long time," he told me.
As for funding, each association member is levied a small annual fee which covers the few overheads such as the cost of hiring meeting rooms and stationery.
The NDA's constitution says that the term of office of the chairman will be two years, but there is no rule which prohibits an existing chairman from being re-elected. Ron's modest attitude towards this is simply to "wait and see" until January, 1984, when his term as the first, and so far only, ERF National Distributor Association chairman comes to an end.
How does he see the future of the association? "The whole of our industry has undergone a massive trauma over the last two years. It is still changing, and we shall certainly need to change with it, but I can't be sure exactly how."