Jivaji Auto Factors began life in 1973, so with this being its 50th year in business, there was no better time to pay the team a visit. Editor Tom Henman was invited personally by one of the directors, Haki Kapasi, and was delighted to be thrusted a previous edition of Professional Motor Factor almost as soon as he entered the building!
Once parked up in a nearby car park across the road, I trotted over to Jivaji Auto Factors. It’s an accessory shop that’s sandwiched between other independents; in fact, scanning the street in both directions, the vast majority of the businesses appeared to be independent and not part of a large corporate chain.
Walking into the store, there were transparent screens erected on all sides, from top to bottom, with a small window to a counter where a gentleman offered a warm welcome. As he scurried off to fetch Haki Kapasi, one of the directors of Jivaji, I scanned through the windows to see the obvious brands and types of products that a retailer would have on sale – typical service items and other commodities that a motorist would want for their vehicle – but there was a brand dotted around the store that was alien to me – Autotech – so I banked it for a question later on.
Haki jumped into my life with a beaming smile and escorted me through the store for the first time, where I discovered a few component parts, but, again, it was mostly retail items. I walked up a steep staircase – avoiding the computer equipment that was clearly on its way out! – I was shown into an office where two gentlemen stood and introduced themselves: Habil Kapasi, Haki’s brother and fellow director, and Andy Jones, who is responsible for marketing and data. They are the three senior figures of a business that comprises of eight staff.
Fuelled with tea and posh biscuits – I felt honoured! – we got going and, naturally, the first question was about the background of Jivaji Auto Factors.
Take it away, Habil: “Simply, we are a small family business that supplies both retail and wholesale auto parts. After leaving Uganda in 1972, my parents began to run the shop here on Lozells Road in 1973.
“My father then developed a stock control software package in the 1980s. He pursued this after our shop was burnt down during the Handsworth riots in 1985. What started as a personal interest, a passionate hobby, he soon began selling the software because his customers liked and wanted it.
“The store began trading again in 1990, but by the turn of the millennium, we started to veer away from retail and focus on wholesale. That being said, today, we’ve a balance of two strong arms to the business with retail and wholesale. We also have our own brand Autotech.”
Introducing Motor Factor Solutions 2
That answered one of my questions but triggered several others – firstly, about the stock control software. Motor Factor Solutions 2 – or MFS – is a desktop application designed to meet the specific needs of motor factors and retailers. It provides a “robust yet easy-to-use” package to manage sales, purchases, stock levels, accounts and reporting.
Customers that continue to use the software are rewarded with discounts – a loyalty scheme if you will – whereby, the more the platform is used, the less likely they’ll require support.
So, how many motor factors have dedicated themselves to MFS?
Habil responded: “A friend of Jivaji heard about my father’s idea and saw the value in it, and that’s how it snowballed. It’s ended up in a few places around the UK – I’d say around 20 so far, and we’re confident that others will follow suit.
“That’s because we’ve redeveloped the software with the intention of upgrading it, bringing it up to specification that will meet today’s motor factor and retail challenges. We’ve enhanced my father’s old clients’ software, while we’ve picked up new customers too.”
Each time I brought up MFS, Haki or Habil referred me back to Andy – it was clearly his baby now! I quizzed him about how the customer is charged – was it a one-off cost or a rolling subscription, for example?
Andy replied: “There’s a one off cost, but we try to keep everything low. If a factor just wanted the software but didn’t want a data transfer, it’s £50 to set MFS up remotely.
“To move a factor’s data from its existing system to our system, we charge £500. There’s another option where I go along, set up the system and network, move all its data across, give the guys a couple of days of training. That costs £1,290 – that’s just the set-up fees.
“Then there’s a monthly fee, which starts at £100 for retailers and £150 for warehouses. But we don’t tie anyone down to a contract; we ask our customers to judge us after three months. People would likely run it for three months anyway, but nobody has said after that period: “No, I don’t want it anymore”.”
Intriguing business model
I was impressed by what I’d heard; the factoring side of the business had almost entirely disappeared, apart from a few nearby garages that have enjoyed availability and a strong relationship over a considerable period of time.
I’d obviously walked through the shop, where there’s approximately 10,000 part numbers on the shelves, while, in the warehouse, there’s 2,000.
I felt this was the perfect opportunity to probe more about Autotech. It’s a range that varies from power steering fluid to screen wash and engine oil to brake pads.
Haki revealed that the sources of the Autotech range vary in terms of location, but, quality wise, the verdict has been unanimous:
“The brake pads are microscopically tested and the garages we know tested them – and now they would ask for it by name. Likewise, there is an article that shows the pads being reviewed by a VM and the feedback was superb.”
Habil admitted that Jiavji prices these products “at the bottom” but was “lucky” to find a brake supplier where qualities were “unquestionable.”
Andy added that Jiavji had to be clever with the Autotech branding; it’s a white label product so it was a blank canvas in terms of how the packaging would look on the shelf and how Jivaji wanted it to stand out – Andy is convinced that objective has been achieved.
50-year anniversary
This year marks Jivaji’s 50th anniversary and represents a “really good opportunity” to “reconnect with customers and remind people we’re here”. Despite a loyal customer base, a profitable business and impressive in-house data software solution, there are always hurdles to overcome. One of the challenges is to bridge the gap between itself and the younger generation – people that are likely searching for brake pads or service packs on their phones.
Haki explained: “That’s the sad story of the High Street, isn’t it? It’s a consequence of searching and seeing the large wholesalers at the top of the page. It’s hard to compete with that, but we’re not admitting defeat, we’re working harder and with this being our 50th anniversary, there’s added motivation to make a big push.”
Habil added: “That being said, we receive more phone calls on a Saturday afternoon, whether it be phone calls or walk-ins, than we do during the rest of the week because the ‘big boys’ are closed.”
Final word
Jivaji Auto Factors is located in a diverse part of Birmingham, where communities and cultures are tight. There are many different nationalities. Jivaji itself has two staff from Bulgaria, both of whom work in the nearby warehouse, one from Poland and one that is a British Pakistani.
A former member of staff, Frank, who sadly passed away a couple of years ago, was fluent in five languages! He was an invaluable asset and is sorely missed by staff and customers.
I offered Habil and Haki the opportunity to conclude the interview with anything extra they’d like to add – Habil stepped up: “Fifty years of experience is not a gimmick or empty words, there is genuine experience here. When we design software, it’s parts people that are designing it for parts people. When we created Autotech, it was parts people designing it for retailers. It comes from pure experience; there’s no handbook or manual.”
It was a joy to spend time with Haki, Habil and Andy, as well as meet Daniel and Luqman in the shop that, begrudgingly, agreed to a photo! I wish Jivaji Auto Factors the best for the future.
