MotorSave member case Study: Mark Samways, Cambridge Car Company Ltd
Mark joined MotorSave in 2004 and is now in his 5th year of trading. He previously had a business selling promotional clothing. The clothing business was changing fast and profit margins were being squeezed badly. He always had a liking for cars and when he saw the MotorSave advert, he applied and completed his 3 day course with ease.
Starting with a modest amount of capital, he traded from home. He hadn’t decided exactly what part of the Motor Trade he wished to specialise in and so initially experimented. He did some sales to garages as well as retail customers. One of his earliest purchases was a new shaped Mini. He did very well with that and experimented with other makes and models. He found margins greater in the upper price ranges and when he could, focused on a variety of cars in that range whilst he learnt his craft. He found a great demand for X5s, then later Range Rovers. He had by now decided to concentrate on retail sales from home.
Operating from home, he started to outgrow his available space and so rented space from a local farm where he could store his growing stock. He found the Motorsave web site helpful in getting him a web presence inexpensively. Later he had his own web site, personalised to him. He found that with the right stock and a web presence, selling well outside his own area. A website allows you to “punch above your weight”.
With growing profits and reputation, he went further upmarket and developed a passion for selling sports cars, Porsche etc. When you focus on a particular aspect of any trade you end up with a more in depth knowledge. Yet again he was outgrowing his premises and also decided his business would benefit from the marketing uplift provided by proper retail premises so in early 2009 opened his first garage in a small town outside Cambridge.
Mark is particularly good at his business. He does a lot of networking at every opportunity. As a result he has expanded many a single sale to multiple sale situations. For example, when he sold a car to a manger or director of a company he went on to exploit that and become the general supplier and disposer of vehicles for the company. Small to medium sized companies, greatly value being able to hand over their motor needs to someone who they can trust.
As Mark’s business has grown and his profile risen he has been able to attract a good number of “sale of return” cars, reducing his own stocking requirements.
Mark has contained his expense well. His annual rent for his unit is approximately £24000pa inc rates. He has just two employed staff. A small number of others are self employed as and when needed..
Mark’s last trading year ended on 30/9/2009. A difficult trading year.
His estimated results, subject to audit, are impressive:
Cars sold: 230
Turnover: £4.6m
Gross profit: £341,000.00
Average sale price: £20,000.00
Stock turn: 14 (just 25 days in stock on average – exceptional)
The variety of Motorsave operators is very wide. Some are full time and others part time. Most work from home, a small number from premises. It is an exceptionally flexible business opportunity. We are about to enter our 11th year in 2010. Why not join us? Mark was always supported with ready advice from Chris whenever it was needed. You would be too.
Of MotorSave, Mark said a year after completing the training course, it was “the best £1000.00 I ever spent”. His website is www.cambridgecarcompany.co.uk
- Photograph shows Mark in his showroom near Cambridge -