Rus News Journal

Autovases will cut off to dealers a margin

Autovases since October will change the scheme of work with dealers. The factory will lower the fixed margin of the dealers about 7 % to 5,5 %, but will enter for them awards for maintenance of sales volumes and observance of corporate standards. Additional awards will be received by those who will agree to open salons in the Far East.
autovases since October will change the scheme of work with dealers. The factory will lower the fixed margin of the dealers about 7 % to 5,5 %, but will enter for them awards for maintenance of sales volumes and observance of corporate standards. Additional awards will be received by those who will agree to open salons in the Far East.

on Friday on the Moscow international motor show the new vice-president the Autovase on sales Artem Fedosov (it is appointed in July) has presented the new scheme of work of factory with dealers. As mister Fedosov has informed, since October, 1st of Autovases refuses the fixed margin for dealers and enters a variable margin. If now the margin of the dealer makes a minimum of 7 %, that is the dealer receives from factory cars with 7 - a percentage discount to the recommended retail price since October the size of the fixed margin is cut down to 5,5 %.

Simultaneously Autovases will enter for dealers bonuses for performance of the planned sales volumes (1,2 %), for conformity of the centres to corporate standards (0,6 %) and for high quality of servicing (0,6 %). Thus, if the dealer fulfils all requirements the Autovase, its cumulative margin taking into account awards will make 7,9 %.

mister Fedosov Besides, has informed, the dealer network of factory will be it is optimised . It is necessary to understand As it, in - the first, increase in number of independent dealers the Autovase and reduction of number of affiliated sellers, in - the second, advancement in regions where Autovases it is presented poorly, first of all, to Siberia and to the Far East. Now at the Autovase in total 417 dealer centres, from which own - 109. As appears from business - the plan the Autovase, on sales through own centres is necessary an order of 25 % whereas at world manufacturers this share usually does not exceed 15 - 20 %. Accordingly, Autovases intend to reduce quantity of the dealer centres (roughly to 70 by 2020).

remain only most financially steady flagman the centres which will correspond to all standards the Autovase and to be in strategic regions for it (including in Siberia and in the Far East). Independent dealers should be an order 425. If they want to work in Siberia and in the Far East will receive the additional award at a rate of 1 - 2 %.

Separately Artem Fedosov has underlined intention the Autovase to develop corporate sales which, as they say in business - the factory plan, will lean against a state sector and should make in the long term more than 10 % of sales (at level of 160 thousand cars in a year). Besides, Autovases intend to develop business on sale of spare parts, and also financial services.

plans on margin change are quite sensible and progressive, the commercial director of holding " considers; the Auto world Andrey Dja. In - the first, awards will stimulate dealers to support sales the Autovase, and in - the second, reduction of the fixed margin as a whole will strengthen a dealer network because at the expense of a natural decrease it will lose smaller, weak or grey dealers who are not ready to correspond to standards of factory and to invest in development . For larger players it will mean increase in sales volumes, the dealer believes.

Intention the Autovase to move ahead to the Far East, as he said, while it is obscure, as from this step the factory yet did not represent economic calculations and benefits to dealers. While it will not occur, mister Dja considers, advancement to the Far East will look the social project.