April - May Mag Issue 25 Paperturn - Page 10



NEWS
the next management agent
and recovery operators, again,
recorded another 34% reduction
in their rates of pay. Operators
were ‘allowed’ to work direct
with Mercedes but only if they
matched the derisory WP rates.
Has the RAC invented
teleportation?
It couldn’t get any worse, could
it? Well, er, yes. The RAC
have now emerged as the new
management agent and guess
what? Rates, according to data
being re-ported by members,
have been reduced by another
6% on an average bundle of
jobs. It’s been reported, this
new calculation is attributed
to The RAC discounting the
mileage taken ‘to’ and ‘from’ the
incident, only paying for mileage
whilst towing. Maybe, The RAC
have instructed the operators to
teleport to the incident so they
don’t incur mileage, but I don’t
think that’s been invented yet,
so more likely, the ‘to’ and ‘from’
journeys have been deleted
from their rate to introduce
more value. Over the course
of a decade, whilst inflation has
continued to increase, our rate,
on yet another revenue stream
has gone in to sharp decline.
I can understand Mercedes
requirement to look for
efficiencies in their supply
chain and administration but
you have to question their long
term strategy. If they continue
to contribute to markets that
erode the recovery industry,
then we won’t be able to buy
their trucks and their existing
10
customers will get fed up with
the drop in service levels. Mind
you, we should also question
why recovery operators would
continue to work for such
low rates, especially when
they could leverage the main
dealers by threatening not to
buy Mercedes. If only we stuck
together.
Different conversation to a
changing market
During the present
administration of AVRO we’ve
tried to move away from
pointing the finger at WP’s.
We understand that the rates
argument is not a binary
one between us and them.
Generally, I believe, a market
place finds the transaction
rate in between the supply
and demand. Of course it
doesn’t help when non PAS
43 operators are allowed to
compete at cheaper rates but
that’s another debate. We’ve
lead the conversation by trying
to educate ourselves about
running costs rather than moan
about the rates, so we are better
placed to advise our members
what work to turn down, until we
invent teleportation.
AVRO’s negotiating position is
often compromised by our own
members who complain about
rates, on the one hand, then, on
the other, sign up to contracts
that they say are unprofitable.
It is fair to say that the industry
should also take part blame for
the generational erosion in rates.
I don’t think we should just
market is practically owned by
the large WP’s. However, If you
look at The USA, this model
is already being challenged
by smart app technology
which is widely available. The
technology, like in the taxi
and food delivery markets is
disrupting the status quo. The
old legacy of a policy driven
Our conversation with the WP’s, market is collapsing. Smart
Application technol-ogy brings
HE, Police & Manufactures
end users closer to the recovery
(the purchasers) should also
operators so there’s less need
question; how much would
for the work providers in most of
they want to invest to keep
The USA and South America.
a professional recov-ery
network? If they continue to
Market leaders like urgent.ly
erode the recovery network
boasted 11,634% growth and is
with ever lower mar-gins,
the 6th fastest growing company
recovery businesses will
in America. The Honk platform
continue to fail and the gaps
has an expansive nationwide
in experience, skill, kit and
network of over 75,000 service
knowledge will continue to
vehicles, Towtrax forecast over
grow. We should also make
the point that; even though the 2 million tows this year. These
recovery network Is not owned organisations are no longer
start ups testing the science.
by the ‘purchasers’ they have
They are testament to the
a collec-tive responsibility to
tech starting to takeover. Like
support it, otherwise it won’t
UBER they all offer ‘on demand’
be there for them when they
need it. The ministers preamble breakdown assis-tance from the
palm of your hand without the
from 2008 statutory vehicle
need for a policy (that you buy
recovery legislation (quoted
above) recognised this dynamic eve-ry year and never use).
and made the same point. The
The logic follows, that if
authori-ties and HE continue
motorists can reach out to
to show their arrogance and
recovery operators, directly,
completely ignore it.
using smart apps, then so
can HE, The Police and
App technology
manufactures, so where
It seams to me that one of the
main drivers for rates of pay in does that leave WP’s and
management schemes in the
our sector is because British
future? Smart App Technology is
culture demands that we buy
an annual breakdown policy (or prevalent in most other service
banks buy it for us and include industries already, The tech is
coming, it cuts out the middle
it on your bank account).
man, we need to embrace it.
Therefore, the main route to
be asking the WP’s for more
money, we should be ask-ing
ourselves why are we working
for less and less money. We
should do more about it, change
the dynamics of the supply, vote
with our feet, like the French
- their system works better for
them and the motorist.

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