Fixed margins backed
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Iveco Ford Trucksure Services director Peter Rhodes has dismissed criticisms of the fixed margin approach which forms part of the company's approved used trucks programme. "Fixing the margin has resulted in a few culture shocks, but we believe it helps generate increased sales," Rhodes says. "You trade off a slightly reduced margin against a bigger volume throughput.
"From the dealer's viewpoint, it can mean there are more trucks he has sold operating in his territory, and that should result in more parts and labour sales." Eleven Iveco Ford dealers— termed Mega Dealers—are participating in the Iveco Ford Truck 2 approved scheme, which is gradually getting off the ground, says Rhodes. "The next month or two should see a lot of operators looking for used vehicles to supplement their existing fleets to help them cope with peaks in their business." IFT 2 should help support Iveco Ford second-hand values, he adds. "Maintaining residuals is the first step," he says. "Improving them is something we hope to do over a longer period."