Coachtraders was founded by Brian Ferguson and Gordon Robertson in 2009, and ever since it has specialised in mini and midicoaches. They have some big plans for the business’ future, too
Independent dealerships that pride themselves on delivering the highest level of customer service and a having a ‘can do’ attitude abound in the mini and midicoach sector. Add in a director with real-life experience of running small coaches and what do you have?
Answer: Coachtraders.
Coachtraders is based in Whitburn, West Lothian, close to the Scottish Central Belt’s M8 motorway. It was founded in 2009 by old school friends Brian Ferguson and Gordon Robertson, and sells products from Paramount Conversions and UNVI.
Brian remains heavily involved with his family business, Ferguson Minicoach Hire. Coachtraders is descended from Harry Ferguson Coach Sales, which was active in the same sector and sold badge-engineered UNVI products from a now-defunct supplier.
“We spoke about establishing Coachtraders and planned to sell used vehicles,” says Gordon. “After our vehicle supplier left the market, all of us who had been involved met at 2009’s coach and bus show at the NEC.
“We didn’t know what UNVI’s tactics were going to be, but its UK and Irish franchise was split and we created Coachtraders. We sell new vehicles, and Ferguson Minicoach Hire handles aftersales support,” adds Brian.
Another existing relationship meant that convertor Paramount Conversions’ products were added to Coachtraders’ line-up. That gives it a range that extends from an eight-seat Mercedes-Benz Sprinter from Paramount to a 43-seat Atego-based UNVI Touring GT, with most things in between.
Doing the groundwork
It took time to establish UNVI as a standalone name but the process was helped by a strong demand for Sprinters that also drove Paramount sales.
”The pound’s strength at that time helped us. We were competitive, and that benefit was passed on. People were seeing more of both brands,” says Gordon.
Volumes were in a comfortable position. The past few years have seen around 40-50, split roughly equally between Paramount and UNVI, but Brian and Gordon have plans to increase that in 2017.
Doing so will require an investment in the business. Coachtraders currently employs three people including Brian and Gordon, but that will increase in the long term, as will the size of its premises.
A dedicated showroom is planned, along with an area for pre-delivery inspections and processing part-exchanges.
The master plan
Coachtraders prides itself on being active in the market. For UNVI products, it generally covers Scotland and a segment of England from Yorkshire upwards.
“It is vital to be out there to sell vehicles,” says Gordon. “For example, we recently took a coach to the Shetland Isles.
“There was a cost involved, but we know that operators value a salesman visiting them, and even more so bringing a vehicle to view. It establishes new relationships, and furthers those that already exist.”
In 2017, Coachtraders is targeting 50 new sales as a minimum, and it aspires to 60 if the market remains strong. Northern Ireland is set to receive more attention, as is Yorkshire.
For all of this to happen, additional appointments will be necessary. An administration position is likely to be the first, followed by a sales executive.
“To have achieved what we have between us is a fair undertaking, but to take the next step we need more employees,” says Brian.
“An additional salesperson has got to pay their way, but we must bite the bullet at some point. It’s picking the right time, and it’s also picking the right individual,” adds Gordon.
“Do we look within the industry or search outside it? We are more inclined towards the latter. But getting out there in front of operators is the best way to do business, and we are committed to doing that.”
Lesson learned early
Despite hitting the ground running in 2009, Brian and Gordon learned an early lesson that has stood both them and their customers in good stead ever since.
“It was fundamental that when UNVI took us on as a distributor, it would control and underwrite the exchange rate, meaning that we pay in Sterling. It gives certainty; we give the customer a quote and that’s it,” says Brian.
“It removes the risk from the deal,” adds Gordon. “Customers know that if they order a coach from us today, but don’t take delivery until August, the price will stay constant. Otherwise if we waited for the vehicle to arrive and found that the rate had changed, that could cause problems.”
A similar scheme is in place with Paramount. Coachtraders pays it in Euros, but funds are secured on a set exchange rate when the order is placed.
“Contrary to what people may think, margins on Sprinters are not huge,” says Brian.
“A point or two’s difference in the exchange rate could wipe out the margin. We know that by securing funds, we are making the margin we need to continue to support the product and build the business.”
UNVI acceptability
UNVI’s range is showing considerable promise, report Brian and Gordon. Sprinters – both conversions and coachbuilt – are established, with the extended Vega EX conversion the bread and butter of this segment, while at the top end is the Touring GT, built on a 15t GVW Atego chassis.
In between are two mid-sized offerings, the 10.5t GVW Atego-based Voyager GT and the Compa T. The latter is on a 7.2t GVW Iveco New Daily chassis and was launched in right-hand drive at Euro Bus Expo in November 2016. It is already proving successful.
“Operator response to the Compa T has been excellent, and it may become our second-best selling UNVI model after the Voyager GT,” says Brian.
“The level of interest took us by surprise, but perhaps it shouldn’t have done. We have read press coverage of the New Daily and how good it is. The improvements made over the previous Daily are significant.”
What Coachtraders, its fellow UK and Irish UNVI dealerships and UNVI Bus and Coach were initially unsure of was where to pitch the Compa T.
“In the distant past, the Riada was very popular; it was built on a six-tonne GVW Sprinter and carried 22 passengers with masses of luggage space. Lots remain in service, but when the Riada ceased we had nothing to replace it with,” says Brian.
“The Compa T is not a Vario substitute. It’s a Riada replacement. We considered seating capacity and 24/25 was a sensible number. It doesn’t push weight limits and there is also an option for a VIP layout.”
Acceptance was rapid, adds Gordon. “Every customer that I have spoken to knew exactly what we were targeting.” Coachtraders alone was approaching double figures for Compa T orders by late 2016.
Paramount leisure
Paramount conversions complements Coachtraders’ UNVI offering, the two men say. “In the early years, Paramount was establishing itself and we were telling customers about its minicoaches,” adds Gordon.
“When they saw the product, and realised how well put together it is, they were happy to place orders.”
Paramount’s range is extensive. It stretches from eight seats (or fewer) on a 3,500kg GVW M1 Sprinter to 22 seats and a boot as an extended conversion at the newly-introduced GVW of 5,500kg; indeed, the first 5,500kg GVW conversion by Paramount went to a Coachtraders customer.
“The M1 Sprinter is an add-on at the moment, but we see more interest in it,” says Brian. “In particular, it is well suited to a VIP application with 1+1 seating.”
Set for the future?
Coachtraders is a story of industry knowledge combined with hard work and a little slice of luck, as shown in the early days when a favourable exchange rate drove growth.
“We are 100% committed to UNVI and Paramount,” says Brian. “It is not the case that we will be selling something different in the future. That’s why I favour bringing in a salesperson from outside the industry.”
Credibility and commitment to its customers are also in the mix, and thanks to a focus on both Coachtraders has an excellent record of repeat business, he adds.
“Making the effort with customers, and particularly the effort that nobody else does, is key, and by doing that, we see scope to expand our market presence in the future.”