Nova Bussing was founded with a focus on a certain part of the market. Developing that has delivered growth for the Rye-based firm, which continues its targeting of that sector
A lot can be said for a business plan that involves identifying a target market and focusing on it. That approach has worked well for Nova Bussing, a small operator that is based in Rye, East Sussex.
It keeps its modest fleet of small and large vehicles busy largely on corporate, promotional and tour work. The latter includes multi-day and multi-week hires for holiday companies and bands.
The reason for the company’s focus on these sectors is two-fold. Peter Davie has extensive experience of ‘band bus’ work, while his son James carried out extensive market research before the business was formed.
When setting up in the market segment that Nova Bussing targeted, it goes without saying that the standard of vehicle required for will be high.
Because of that, growth has come steadily rather than in large steps. Coaches are replaced regularly, and its fleet – which extends from Mercedes-Bens Sprinters to a Yutong GT12 – has been all-Euro 6 for three years.
“Before starting the business we did some research to see what the state of the market was,” says James. “We found that rates for bread-and-butter work were towards the lower end of what we would expect.”
Because of that, quality was sometimes lacking. It was clear to James and Peter that there was little point engaging in competition on that basis. They instead looked to establish their own niche.
That started with a second-hand Sprinter that they refurbished. In 2010 the minicoach market was different to what it is today, and there were fewer high-specification examples available to hire.
With some targeted marketing, things went well. A couple of further vehicles followed, and Peter’s contacts in the music industry brought in business. Importantly, things in that sphere had changed; there was less requirement for sleeper coaches and more focus on daytime transport, says James.
“Then we decided we were going to buy a new Sprinter. We approached EVM and it showed us one that was exactly what we were looking for, so much so that we ordered a second. It all happened at the beginning of the busy season. Work was pouring in and we went from there.”
Luxury at heart
A luxury fleet allowed Nova Bussing to charge higher rates than it would have been able to with standard vehicles. But at the start it did not deal exclusively with that end of the market; other work fitted around it to fill the gaps.
James’ experience in digital marketing stood the business in good stead from the start. All of its sales are generated via its website, but quotations are created by a human hand. Nova Bussing keeps a spreadsheet of all previously generated quotes and it prides itself on contact with clients.
“That is why we do not work for brokers. That they suit some operators, but we want to deal with customers directly,” says Peter.
Another of Nova Bussing’s policies is that it does not extend credit. It has worked with many major companies and has never encountered an issue with that. In fact, it gives hirers reassurance, James continues.
“When a customer pays us a deposit, that’s almost a security measure. It tells the hirer that the coach is assigned and that it will turn up. There are heard stories where credit has been given, only for a better job to arisen. The vehicle goes on that instead, leaving the original customer high and dry.”
Into bigger vehicles
Mercedes-Benz Sprinter- and Atego-based vehicles served Nova Bussing well at first, and it initially had no aspiration to move towards large coaches. Then it received an enquiry for a 45-seater as part of a music tour than involved an Atego.
“One of the good things about band work and the other tours that we do is that they can be multi-week hires,” says James. “That reduces the work required on our part compared to doing multiple jobs per week or per day.”
Another significant part of Nova Bussing’s business is its promotional work. That usually entails applying a vinyl wrap to a coach, and it has done so for many high-profile clients, including the Labour Party.
“The first such job we did came via our website. It called for a coach to be wrapped and taken to two locations, where it would park while people were invited onboard to speak to the company involved,” he continues.
What quickly became apparent was that on promotional work, coach hire were not paid for from transport budgets. Instead, it was as a marketing expense. That opens doors to the proper rate for the job.
Applying vinyl is the work of specialised companies, but when removed it is not as much of a problem as may be expected.
Nova Bussing’s vehicles have carried the colours of many corporate giants, although its simple white-based livery was not selected to suit the application of vinyl; instead, it is to accommodate clients that require discretion and a low-key approach.
Yutong dimension
Nova Bussing was the first UK operator to collect a Yutong GT12 from supplier Pelican Bus and Coach. It has been downseated to 41 with tables. The smaller TC9 also features in the operator’s fleet.
“We needed something slightly smaller than one of our other midicoaches. Pelican brought a TC9 to us and we really rated it; it was great to ride on and lovely to drive,” says Peter.
Availability from stock was a further boon. “A week after we saw the TC9 we placed an order. A week after that, it arrived. That was a departure from what we were used to,” adds James.
“We’d always had factory vehicles where the lead time was often measured in months. We were busy and we needed another vehicle in a hurry, and Pelican delivered what we wanted. The coach didn’t have the exact seats we’d have liked, but it had a toilet, which is important.”
Much of Nova Bussing’s work is in and around London. For a small operator based in a town that is almost on the south coast that may be surprising, but there are benefits to being outside the capital.
It means lower overheads than would be achievable within the M25. Vehicles are looked after locally by a commercial garage, and Nova Bussing has a loyal driver pool.
“We don’t do any school work and we don’t expect drivers to clean their vehicles in the yard,” says Jamse. “Cleaning here is done by a dedicated member of staff. That ensures coaches are always in showroom condition when they go out, which has won work.”
Drivers are paid well, but not by the hour. Instead, three daily rates are in operation depending on the workload. That gives certainty to staff and it allows the operator to know its costs when quoting.
There is unlikely to be a scenario where a driver costs more than was expected when the quote was issued. Nova Bussing also charges customers for waiting time over what has been agreed. Like the policy of payment in advance, that is yet to generate a quibble as it is explained beforehand.
Insulated market
Nova Bussing has not seen a major impact from Brexit-related uncertainty. Its customers are often insulated from currency fluctuations and many are from Australia, the Far East and the United States.
It sees many repeat bookings from those clients. James and Peter put that down to delivering what they require. The odd customer has gone elsewhere in search of a better rate, but some have returned having learned a chastening lesson that you get what you pay for.
“People are willing to spend extra for the right service, but that doesn’t mean that you can sit back and wait for them to appear,” says James.
“We spend a lot of time and money on generating leads and bookings by targeting the work that we want to do. The days of a customer by default using its local coach operator are long gone; now they search online. Getting our adverts in the position that will bring those clients to us is key.”
James and Peter have no interest in taking Nova Bussing beyond its current 12-vehicle authorisation. They may reduce the fleet slightly towards the end of the year.
Instead, they are concentrating on building what they have got and generating more of the work that they want to do. A policy of maintaining control of costs and knowing what each one is and represents has served them well.
The operator is also realistic in its approach to what it can do at the busiest times, and it cuts its cloth accordingly. It prides itself on customer service while charging a fair rate. That allows it to deliver what it promises in the first place.
