In Ladybrand, Ficksburg and De Aar, the local Toyota dealerships are owned by the agricultural co-op, which makes them an intimate part of their local communities.
The three Toyota dealers belong to the OVK (Oos-Vrystaat Kaap Beperk), which is run by its shareholders or co-owners that are predominantly farmers from the local community.
The head office of "the OVK" as it is generally known, is in the town of Ladybrand in the Eastern Free State. From here it delivers diverse services to different farming communities in the Eastern Free State, Eastern Cape, South- and Western Cape as well is in the Northern Cape.
Dealerfloor asked the Manager of Mechanisation and Vehicles at the OVK, Willie Dietrechsen, a couple of questions on how selling cars are part of their business model.
What are the advantages for a business like the OVK to own retail car outlets?
“Our biggest client base is farmers. They are also co-owners of the business with the advantages of buying from their own business. They receive shares via a loyalty scheme every time they support the business.
“Another huge advantage we have, is the financing options on vehicles which are part of the total financing package of OVK Financial Services,” he told Dealerfloor. This could give a competitive edge in many instances over the bigger retail groups that might offer a price advantage on vehicles because of larger stock volumes.”
How has the local economy in each town affect business?
“From the announcement of the lockdown the market fluctuated quite a lot. The impact will be felt far longer than just 2020. The fact that a lot of our clients live and work in neighbouring Lesotho which is close to our dealerships in Ficksburg and Ladybrand, delivering products and rendering services were very difficult with the border been closed,” Willie says.
And being in the farming business and selling Toyotas, it come as no surprise that all three dealerships’ best-selling models are the Hilux, Land Cruiser and Fortuner.
How extensive is the dealerships involvement with their local communities?
“It is very important for all three dealerships to support their local communities. They are based in smaller communities that makes it so much more important and participate in various initiatives with different entities.
“The safety and security of the rural community is of high importance to us and all three dealerships are involved in this important effort through organised agriculture institutions like Vrystaat Landbou,” Willie says.
The three Dealer Principals, are Darius Steyn that is part of Ficksburg Toyota since 2016 and working for Toyota since 2003; Marnitz Nienaber switch over from the coast at Vredendal to De Aar in the Karoo and in Ladybrand, Barnie de Villiers, has recently been appointed as DP of Ladybrand Toyota.
As we all know, the profit of a motor dealership comes from several areas and each of them needs to be monitored closely if you want to ensure that your dealership performs well.
The bakkie war has intensified with the local launch of Mitsubishi’s next-generation Triton, an evolution in the iconic bakkie’s 46-year legacy.
Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
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I have bad reflexes. I was once run over by a car being pushed by two guys
Woody Allen
As we all know, the profit of a motor dealership comes from several areas and each of them needs to be monitored closely if you want to ensure that your dealership performs well.
Unlike in the past, when dealerships primarily waited for customers to come to them, we now take a more proactive approach, bringing our vehicles directly to places where people gather, allowing them to experience the product first-hand, including offering test drives,” says Gerrie van der Kaay, Dealer Principal at Supergroup Dealerships Jetour Midrand.
One of the latest Chinese automotive brands to establish itself in South Africa, GAC Motor, is benefitting from the expertise of well-known motor groups in the country, like the BB Motor Group.
