‘Go big or go home’ was the attitude of Steve Jones and Tony Griffiths when they made the decision to inject their own cash into Auto Spares Wales, a two-branch factor in south Wales. The directors reveal their journey so far after celebrating the independent’s one-year anniversary in February.
During the pandemic, sitting at home and wondering what was around the corner, Tony, following stints with Fast Past Wales and Spartan Motor Factors, received a call from Steve. Tony always knew his friend and colleague had dreamt of starting his own retail factor; however, the idea soon become a reality after the two of them pulled funds together.
Steve said: “Tony was the perfect business partner; his experience, professionalism and knowledge of the area meant he was invaluable. Once we had the capital to invest, we decided to go big or go home!
“We initially looked at a 1,000sqft shop, on a high street; however, we decided to go bigger. The first unit, which was opened in February 2021, is 3,000sqft, with another 1,200sqft mezzanine floor, so we’re covering more than 4,000sqft in one building in Rogerstone, Newport.
“Only a couple of months in, we were approached by several people from the trade, asking if there were any openings or if we had a desire to open another factor in another area, which just so happens to be the area I’m from: Blackwood, Caerphilly.”
It was at this point that a potential new business partner, Lee Whitcombe, submitted his interest in the business, with a view to investing in the future. As a result, Steve and Tony had the confidence to proceed with opening the second branch in June, and Lee bought into Auto Spares Wales in November.
The outlay, suppliers already committed and the determination from the experienced members of staff meant they could take the next step – albeit only four months after starting the business!
Stock and organisation have to be right
Of course, every new shop needs product to sell, and while Tony and Steve bring decades of know-how to the table, Nathan Travis, a former director of Fast Parts Wales, has proved to be an astute appointment as the director of purchasing, taking things “to another level”.
Steve claimed there are a lot of suppliers that are looking for business, trying to get a “big foot in the door of independents”, which has come to fruition in this case. From a bulb or a pair of wiper blades, which Auto Spares Wales offers free fitting on, to a clutch or diesel particulate filter, the factor has it all!
“There are suppliers that are willing to back motor factors, so long as those businesses have got something about them. We’ve got an excellent business plan, which some suppliers wanted to see and were impressed with.”
Tony added: “A lot of suppliers gave us 12-18 months to pay for the stock, in both branches, and, thankfully, despite a tricky winter period, the cashflow in the business is excellent.”
New generation of industry professionals coming through?
With concerns over skills shortages and increasing wage costs well-documented, not just in automotive circles, but in many different industries as well, perhaps it was unsurprising to learn that the majority of Auto Spares Wales’ members of staff are over 40-years-old.
Tony said: “One of the biggest issues, I think, is that the motor trade has never been the best paid, and professionals can earn a lot more money sat in front of a computer. Most new applicants are those who are looking to top-up their income.
“We interviewed someone recently who was 57. He arrived early, dressed smartly and immediately demonstrated the right work ethic – that’s vital, as we’re running a professional outfit, and we need people to be on-board.
“Our customers are also our friends, and we know we can rely on them; however, if we don’t deliver, whether on good customer service or on product availability, they could go somewhere else. Recruitment is vital.”
Steve acknowledged that the business is going to have to incentivise, possibly through apprenticeships, to secure upcoming talents and build up the next generation that will be the foundation of the business.
Impact of electrification
On to the next topic – electrification – and while Tony conceded he is unsure what the long-term impact for the automotive aftermarket will be, Steve took a firm view:
“Obviously, there is a growing impact of EVs and hybrids at present; however, dealers want to have serviceable items on vehicles, so the customer comes back year-on-year. There’ll still be braking and steering & suspension, but the biggest change is that the traditional service kit will disappear.
“That said, vehicle manufacturers are telling us that there will be other parts that need to be checked and replaced on a yearly service, such as cabin filters that do different jobs, so there will be serviceable items.”
Generally, most EVs are still in the hands of the dealer; however, once out of warranty, that’s when the team think there’ll be some movement and EVs will start to filter down to the aftermarket. Currently, Auto Spares Wales stocks brake discs and pads for Tesla, while steering & suspension is starting to come through.
Meanwhile, Tony pointed out the issues with charging infrastructure in Wales too: “There are still a lot of terraced houses with three or four cars – how are they all going to be charged overnight?
“Electrification will take away some of our business, but it’ll be replaced with something else, I’m sure. We’ll take it one day at a time!”
