Rebranding at 'Buy Right'
Quote:
Originally Posted by
percy
I have often stated there are two areas of concern to me.
1] Buy Right Cars.
2] The length of tail for the MTF bad non-recouse loans,.
Rebrading BuyRight Cars to Turners will fix that problem.
We do know Turners tightened their lending criteria for MTF and other non-recourse loans in April 2018,so that tail should be getting shorter.
So I think the result will be messy with one off rights offs, and one off property gains.
Therefore the outlook statement will be all important.
I am not expecting to be able to judge much on the day the annual results are released. As per last year, we will have to wait until the full annual report is published with all of those messy one offs fully explained to truly understand how the year has panned out. It does make me a bit nervous though: That there is enough wriggle room to more or less make the headline result figure exactly what Turners have previously signalled.
With the demise of 'Buy Right cars', as a brand, I thought it was worth looking back at what was said at last years roadshow, where the outlook for 'Buy Right Cars' was a lot more positive, despite the signalled stock problems.
|
Turners |
Buy Right Cars |
Satisfaction |
87% |
88% |
Likelihood to Repurchase |
71% |
77% |
Stock Turn |
35-45 days |
60-90 days |
Turners is the better known brand, for sure. Yet the likelihood of repeat business is less. So does this mean we will see the not so satisfied ex 'Buy Right' customers will now be 'more certain' knowing exactly what yard they wish to avoid in the future? Brand recognition I assume works both ways! The 'Buy Right' business was structured around spending more time (4 hours) with customers, as opposed to the Turners 'No Frills' (1-2 hours) approach. IIRC, this partly explains the higher satisfaction and likelihood to repurchase ratings. I wonder if this will change, or whether Turners will roll out some kind of 'Turners Premium' branding for the smaller 'Buy Right' sites in the future? Perhaps it does mean that kiwi car buyers are impulsive and cheap?
It was masterful for Todd to rebrand himself at the same time: 'Todd Turner' sounds much less desperate than 'Todd Hunter' for sure. (thanks to Winner for pointing out this little known fact). The Aaron Saunders rebranding around losing the beard was less successful. Calling himself 'Aaron Turner' would have been the way to go, and would have made for a real family atmosphere at the top.
SNOOPY TURNER (Shareholder)