Baotou_Service_0228.docVIP免费

FAWBaotouServiceStationINTERVIEWDATE:Feb28th,2000INTERVIEWERNAME:BillHeIntervieweeNameMs.DingliyunPositionHeadoftheservicestationCompanyandAddressFAWBaotouServiceStationTelephone/Fax0472-4855532BackgroundFAWBaotouServiceStationistheonlyFAWauthorisedservicestationinBaotouandtheyonlyserveJieFangtrucks.ThisservicestationbelongstoBaotouAutomotiveRepairmentFactory,whichbelongstoBaotouCommunicationDepartment.Ms.DingistheheadoftheservicestationThereare34employeesintheservicestation:16servicetechnicians,10partsalesmen,and8administrationstaffCurrently,theyserve450JieFangtrucksunderFAWpaidservice.Morethan80%ofthetruckownersareindividuals.Lessthan20%ofthetrucksownedbyvariousenterprises.Theyhavethreerevenuestreams:FAWpaidservice(includinglabourandcomponentcost),customerpaidservice(includinglabourandcomponentcost),andpartssales.FollowingisthedetailreportsofFAWpaidserviceandpartssalesin1999:1997-1999FAWpaidservicerevenuebreakdownYearTotal(RMB)ComponentCost(RMB)LabourCost(RMB)1997461,303.56302,816.82158,486.741998340,471.94211,146.39129,275.551999333,157.20224,841.85108,315.351997-1999partssalesbreakdownYearSales(RMB)19972,033,7001998799,2001999321,0001Therevenueofcustomerpaidserviceismoredifficulttocalculate.Itisapproximately300,000RMBannually.ThehourlyrateisabouthalfofthatofFAWpaidservice,RMB10perhour.Forasameservice,thenumberofhourallowedofcustomerpaidserviceismuchlessthanthenumberofhourallowedofFAWpaidservice.Inotherwords,FAWsubsidisestheservicestationbyallowhighhourlyrateandgeneroushourallowedforserviceperformance.KeyIssuesIntruckservice,revenuedroppedoverthelastcoupleofyears.Thecompetitiononpricefromunauthorisedsmallservicestationisseverely.ThesmallservicestationsofferlowerpricethanFAWBaotouservicestationbecause:TheyhavelessoverheadcostthanFAWBaotouServiceStationTheyusesubstitutesratherthanoriginalpartsfromFAW.EveniftheyuseoriginalpartsfromFAW,theycangetthemfromchannelslessexpensivethanthechannelofFAWBaotouServiceStation.FAWBaotouServiceStationgetsmostofitspartsfromFAWTradingCompanyandpaysahigherprice.ThesmallservicestationsgetthesamepartsfromsubsidiariesofFAWorpartmanufacturersdirectlyandthepricesarelower.AccordingtoFAWBaotouServiceStation’sestimate,60%ofthepartsfromthesmallstationsareoriginalpartstheygetfromtheabovechannelsatalessexpensivepriceandtheother40%aresubstitutes.Thereasonforthedramaticdropinthepartssalesin1999aretwofolds:Similartotruckservice,smallpartshopscanofferbetterpriceofFAWoriginalpartsordirty-cheapsubstitutesTheFAWBaotouServiceStationwentthroughareorganisationlastyearwhichseverelyimpactedtheproductivityofitspartssalesdepartmentProfitmarginoftruckserviceandpartssalesdroppedoverthelastseveralyears,too.Profitmarginofpartssalesusedtobeashighas30%in1995,20%in1997.Itdroppedtoabout15%in1999.HourlyrateofcustomerpaidservicehasbeencutsignificantlyoverthelastseveralyearsduetothepricecompetitionTheyusedtoselltrucks.Theysoldabout100trucksin1997.TheystoppeddoingsointhelasttwoyearsmainlybecauseofthelackoffinancialresourceTheydon’tdousedcarbusinessatall.TheusedcarbusinessisaregulatedbusinessinChina.OnlyseveralcompaniesinaprovinceareauthorisedtoconductusedcarbusinessConclusionSincetheFAWBaotouServiceStationisveryweakinfrontofthepricecompetitionfromthesmallservicestations.Thelocaltruckownerscaresaboutpricemuchmorethanreputation2FAWanditsBaotouServiceStationhavetoworktogethertolowerthepartprice.Otherwise,TheServicestationwillcontinuetohaveadifficulttimetoselltheoriginalpartsfromFAWorusethemintheirtruckservices.ItmightbeagoodideafortheFAWBaotouServiceStationtofindalocalpartnertoforma“Four-in-One”dealershipbyleveragingitsexpertiseandreputationinservice3