CAAR discusses its business strategy

CAAR discusses its business strategy

While restrictions on our movements may be a distant memory, video calling remains a useful tool, so when we offered CAAR Joint Managing Director, Dave Owen, the opportunity to participate in an interview, that avenue was appreciated given that Dave now lives up in northern Scotland!


While video calling has become a mainstay of our daily lives, the technology and usability of it can sometimes be a bit fiddly and frustrating – I think it took us 15 minutes to get going, but, once the connection established and I could see him and he could hear me, it was well worth the initial irritation.

I hope he won’t mind me saying that while I worked with Dave a few years back, I never got to know the real Dave, and I’d like to think that the hour’s conversation I had with him gave me a genuine insight into his life and career.

It started with him holding a cigarette in one hand, with a can of a well-known diet soda in the other, and I initially wondered if he thought I was Jeremy Paxman! I reassured him that my questions were not designed to trip him up, nor were they controversial – and, actually, while it was meant to be an interview, I would describe it more as a conversation that could have taken place at the local pub!

While our chat was jovial, full of humour – at least from Dave’s side! – we actually started on a sombre note and that was the passing of Dave’s colleague, Mike Fisher, who sadly passed away back in August 2022.

Dave knew Mike for 35 years, crossing paths for the first time when Mike was a sales manager at Maystar. As a salesman, Mike had “few equals” and the pair worked together for 18 years. They’d speak every day on the phone.

Dave recalled: “The one thing that has remained a constant with CAAR – and always will be – is that we’re a family group. Members have always been our friends, people who can contact us at any time, and I can remember Mike’s delight when a new member, who had previously been part of another group, told us at one of our shows that he thought CAAR was a like a big family – the ultimate compliment that we could receive, and Mike was instrumental in that.”

Dave can still feel the pain of the countless hours he and Mike spent on their knees preparing the marquee, tables and chairs for the annual CAAR show!

Mike was a “devoted family man” and his death has left a “huge void” within the group.

Day-to-day roles

Today, the day-to-day running of the business is in the hands of Dave and chief executive, Mike Webb.

Dave, who penned a regular ‘Doris Minor’ column for Autotrade in-between factoring, is responsible for account management, member liaison and administration, but his biggest project is the upkeep of the website – we’ll come onto that shortly! – while Mike can usually be found out in the field, racking up the miles, meeting suppliers and members.

CAAR

It’s a formula that’s worked well – and continues to, according to Dave: “During the COVID-19 pandemic, Mike was tearing his hair out – or he would if he had any! He was beside himself, not able to go out and enjoy the role that he thrives in. He loves meeting members and suppliers.

“During lockdown, my role was largely unchanged! It was business as usual! I got my head down and worked on our website which is an important part of our business and our USP. It gives members a much greater presence in their local area.

“For every order the website generates, it triggers far more phone calls and store visits. Because it’s a website for local people, they’ll go on, find the product they want and then, by and large, they’ll ring up the shop and that’ll spur them on to make further phone calls or enquiries in the future.”

In effect, CAAR has one e-commerce site, which is, currently, only linked to FPS. Everything that FPS stocks, CAAR will list on its website at retail price.

How does it work? Once a customer enters their postcode on the main site, they’ll be redirected to a bespoke, store-liveried member website – I gave it a go myself, and, upon entering my postcode, I was sent to TM Autoparts in Northamptonshire.

If an order is placed online, that will be distributed by FPS and will be with the appropriate store the following day for the consumer to collect. Some CAAR members do offer carriage, but they try to avoid that, because the idea is to attract people into the store!

There are 300,000 products on the website, which is mirrored against the FPS catalogue – even commercial parts!

Dave added: “I would say 90% of orders from the website are for components – only 10% are for accessories.”

CAAR

Essentially, the overwhelming majority of orders are for people that are maintaining their own vehicles – I was curious to know if Dave was surprised or, more specifically, concerned that customers were taking jobs on themselves, as opposed to referring them to workshop professionals.

He replied: “The DIY market is growing once more! A lot of the jobs on a vehicle are still straightforward. There are things, of course, that require a professional’s help, like engine management, but brakes haven’t changed much, nor have filters or suspension. Changing spark plugs is a little more difficult, but that’s more to do with time rather than skill.

“I think we’ll see more of this as well; I’m convinced that consumers, during a recession, can’t justify (or even afford) paying garages £60, £70, £80 an hour for jobs that they can tackle themselves. If they’re not up to doing it themselves, many customers have a neighbour or a friend who is.

“The DIY market has always been with us. Mechanics, when they visit our member stores, will get a better price than consumers anyway – they’ll get a trade price. We’re competitive against large wholesalers and retailers, but we don’t heavily discount on the website.

“Often, mechanics will ask the customer to supply the parts needed, and that’s where our members come in.”

New members and retention

CAAR has 330 members on its books; traditionally, the group will take on between 15 and 25 new sites-a-year but lose a few as well due to movement or they decide to call it a day.

I was curious to know how CAAR goes about its recruitment drive and what incentives there are for members to, one, sign-up and, two, stay for the long haul.

Dave said: “We don’t tend to see much ‘group swapping’; we tend to gain new business off the back of new factors joining the profession or our suppliers’ reps doing an excellent pitching job if they feel that their customer would benefit from being a CAAR member. Factors will also come across our website and be impressed. It’s not easy, though; the windows of opportunity are narrowing.”

CAAR

With more competition and fewer independents, I wanted to give Dave the opportunity to pitch CAAR to me!

Grinning, he said: “We always say “your business, your choice”, so nothing is imposed on you. We have great relationships with our suppliers. We advertise CAAR (and so our member stores) in at least 10 consumer magazines every month, from Car Mechanics to Classic Car Weekly. Those readers are the people who, by and large, like getting their hands dirty, and they’ll also have their modern day-today vehicles as well as a classic! “

At the end of the year, you’ll receive great rebates, and we give you the website for free! Give it a go!”

Is CAAR a retailer or a motor factor organisation?

Dave said: “The old days of factoring and retailing have gone forever – it’s a complete meld. When I started in the trade nearly four decades ago, people couldn’t get through the door of a motor factor if they weren’t in the trade – and there may be a few that still have that mindset – but I believe 99% don’t care who the customer is!”

Fire still burning strong

Dave has turned his hand to several things during his life, like the aforementioned articles for trade magazines, but he’s also got stuck into other businesses; however, after moving to Scotland, he decided to solely focus on CAAR. After such a long career in the industry, I wanted to know what kept that drive and determination intact.

He said: “I love the game! It’s silly really, but to get the customer the right part and for the right price, so they leave with a smile on their face, is something our members still get a buzz from. A customer might’ve been to the dealer, been quoted £100 for a set of pads and they’ve sold him a quality set for £35. Wow. I love everything about it! Having a conversation with a member about their day-to-day experiences (good and bad) on the counter brings back the buzz that I used to enjoy when doing it.

“I’m getting on for 68 – I’m knocking on now! – and while I’ve been involved in family businesses for the last 40 or 50 years, I love my cars. I always have done. I’ve got a workshop, ramp etc so I can get my hands dirty and keep my eye in. It’s my passion.”


For more information about CAAR, click here.

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