UK Sales Manager, Nick Hood shows us that returning old units isn’t always the core of the business at Autoelectro. This isn’t the first time that we’ve been to Nimalec House in Bradford, home to remanufacturer Autoelectro. However, there’s a special announcement today, so we are keen to hear what it is. Before that happens, we are given a guided tour of the complex. ‘Complex’ is the correct term for the sprawling mass of buildings, as the original was bought soon after the business was founded in the late 1980s and has been extended several times since. In fact, if you don’t know your way around it is quite hard to keep track of where you are, as the building twists and turns and is set over several levels. Fortunately, brothers Nicky, Tony and Paul Bhogal are on hand to show us around, as is UK Sales Manager Nick Hood. There are all the things you might expect in a modern remanufacturing business and warehouse, such as a busy sales office, various well-ordered stockrooms (the facility is ISO14001 accredited) and a large reman workshop. There’s also a few things that you might not: For example, there is a complex photo studio hidden away which is set up so the subject can be pictured through 360 degrees, meaning visitors to the firm’s website can virtually turn an item around on screen – the idea being that users can see if a unit is directly comparable to an item being pulled from a vehicle. The testing facilities are also impressive. Nicky Bhogal, Autoelectro Operations Director, (who is an electrical engineer by profession) worked with Canada-based D&V Electronics to develop testing rigs that could not only test a wide variety of alternators, but just as importantly, were easy to set up for each piece being tested. This means every alternator leaving the building gets properly calibrated and has a full test report along with traceability. However, the real business of the day is the launch – and that is the news that from March, more than 2,000 references will have their surcharge charges cut. The 10 bestselling and half of the 100 fastest-moving part numbers within its sales pareto will be surcharge-free, following months of stockpiling core behind the scenes. Nick Hood explained that ironically, the deal was possible because of the proliferation of cheap imported units in the market. “Most people fitting these new units will still keep the old core and sell it by the basket load to a core dealer, so we are looking at a proliferation of part numbers in broader terms.” he explained, adding that dealers would usually take these crates of mixed core as they came rather than picking through them. The result, perhaps predictably, is an increase in the number of the most common part numbers. The new no-exchange offering will be sold in the same red Autoelectro boxes as the rest of the range, albeit marked ‘NEX’. An entirely new sub-brand had been considered, but after a lot of what the Bhogals described as ‘soul searching’ they decided to keep it under the same label. “We’re proud of what we do and we don’t want to step away from that” explained Tony Bhogal. “What we are offering is not a budget product, so it won’t be as cheap as some of the Chinese units” he explained. “But it won’t be much more expensive, which allows us to compete at that end of the market, and with smaller factors that don’t want to deal with core”. On the subject of core, Hood is keen to put one myth to rest. “We are well aware that some people think we make huge money on core, and I can tell you categorically that we don’t” he said, adding that collecting, identifying and processing core is a complex, but vital part of the business and will continue to be so. There’s more announcements to come as well. From the beginning of April, the remanufactuter will be introducing a ‘surcharge transparency’ tool, which will assist in securing maximum profits from stock on the shelf, something we’ll be interested to know more about in due course.
*Original article can be found in CAT Magazine and on their website at: www.catmag.co.uk/the-part-without-the-surge/.