I started my business during the last recession, and I’m still growing!
With the UK economy feeling so uncertain, we’re bringing reassurance and stability to our network. Like Jon King from Cardiff, you may be surprised by what The Wheel Specialist can do for you and your future.
How are you feeling about the current situation, when it comes to thinking – or dreaming?! – about starting your own business? There’s no denying these are very unsettling times for everyone.
And we’re no different. On one hand, there’s doom and gloom every time we switch on the news, with inflation at a high, staff shortages, utility hikes, and suppliers increasing prices. But on the other hand, The Wheel Specialist Bristol, have had six record-breaking months this year.
In the year before the UK went into the last recession, we’d launched five new franchisees’ businesses in Fareham, Nottingham, Newcastle, Cardiff and Glasgow South. Within their first year they were facing the challenges which a recession brings, and needed our firm reassurances to guide them through the hits. However, they – like the rest of the network – not only survived; they thrived.
We even had someone join The Wheel Specialist right in the middle of it. Jon King opened TWS Cardiff in March 2010: “When I came across The Wheel Specialist, I thought it would be a nice little adventure to take on; and actually opened during the recession. It was difficult as we were starting a new business from scratch. The Wheel Specialist back then was still relatively new as a franchise. But, I’d joined a supportive group, and with the CRM and the marketing The Wheel Specialist had in place, it wasn’t long before, business came through the door.”
But how is The Wheel Specialist responding to the downturn?
Looking at the longevity of our model – we’ve been in operation since 1955 – we know from experience people don’t buy new when times are tough. Data around new car sales in the UK, for the first half of this year, currently shows a repeat of this trend, as they’ve dropped the equivalent of 2.8% compared with 2021 (according to the Society of Motor Manufacturers and Traders). It’s not just private buyers who hold back; large corporate fleets also registered a decline, at 18.2%[1]. Any slump in new car sales, is used as a gauge of how people are feeling about the future of the economy, and can be an indication of an impending recession.
This is because in these down times, people adjust how they spend. They choose to invest in looking after what they have – even keeping it looking as good as new – for as long as possible. This is where The Wheel Specialist comes to the fore.
So, how we are supporting our franchise network:
Looking back at the last recession and the lessons we learnt from what we and other businesses who survived did, we’re already preparing our network for what is potentially on the economic horizon. Of course, we need to watch the pennies by looking at areas where we can cut costs, and keeping a watchful eye on cash flow. However, there was a commonality in a number of areas, and it’s these that we’re using to guide our franchisees.
Strengthening our marketing. Compelling evidence shows careful marketing spend, with the right message, has a positive impact on sales. So, on behalf of our franchisees, we’re focused on ensuring we create the right campaigns, and have increased marketing spending, and varied the marketing messaging, adapting what we are saying for the current situation. We have seen conversion rates increase across our campaigns year on year.
Customers increasingly look for the best value for their money. Value is not solely about price, but is a combination of cost, quality and sustainability. Our franchisees are proud to shout out the value they offer both to trade and public customers, and we’ll support them to do so over the coming months!
As Jon says, “People want a quality job. They don’t always go for the cheapest, they go for the best option for their cars. At The Wheel Specialist, we’re set apart from our competition because of the quality we deliver.
“It’s enjoyable to be able to deliver something which puts a smile on our customers’ faces. And these days, we could all do with more of that!”
It's important for us to stay ahead of market trends to understand what customers need, so we can ensure our products and services fits their requirements. At The Wheel Specialist, we have two very different target markets: trade and public. So, our franchisees tailor their services to each market’s requirement, and deliver value every time.
At Head Office we are committed to supporting our networks to make savings in the right areas, whilst increasing sales, so they thrive personally, and their business grows. Should you decide you want to start your own The Wheel Specialist business, we’re just as committed to giving you a strong start. As Jon explains about the benefit of franchising, “When you have a franchise behind you, you have people to listen to you about the problems you face, offering you advice and help – you really need this as a business owner. There’s so much you learn and need to do, so having the support of the Head Office is invaluable – especially if you’ve never owned a business before.”
Ready?
Why not take your first step, and speak to our Franchise Recruitment Manager, George Pomfret about what you can gain from The Wheel Specialist franchise.
[1] www.smmt.co.uk/2022/08/new-car-registrations-fall-as-supply-issues-continue-to-bite/ & www.theguardian.com/business/2022/aug/04/uk-new-car-sales-fell-9-per-cent-july-supply-chain-problems-chip-shortages