Undercut and unfair
Page 2
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I've just had a distressing conversation with a reader who was at the end of his tether. He explained that he'd been in the business for a few decades but had decided enough was enough, and later that day he would lay off his drivers and Lock the yard gates. He painted a picture of a hard-working, honest man, who had beaten the odds and had weathered the recession with hard graft. Money had been tight, but even when he'd gone without, his drivers had always been paid on time. -I can't afford a health and safety manager or to concrete my yard,- he explained, -but the quality of service I offer my customers has never suffered.- So what was the straw that broke the camel's back? He told me a story about a rival haulier who had recently gone bankrupt for the second time, leaving a huge trail of debts in his wake. It had been a huge relief to the caller, who had been able to get on with his business with one less cowboy operator to worry about. But then he heard that the rival was back in business, with a slightly different company name. And what's more, he had undercut our caller's rates by almost 50% and poached his biggest customer. Our caller knows these rates aren't profitable and is convinced the rival will go bust again within six months. -But by then it will be too late for me. I've got no option but to close my doors and get out.- It's all very well us complaining about fuel prices and unfair foreign competition, but it strikes me that this is an equally serious problem — and something needs to be done now. It is interesting to see that the RHA agrees (page 6).
Will Shiers