First up today, I'd like to thank Justin Jones, ex F.R. Jones md, for getting in touch and providing us with a statement that we are able to share with our readers.
He felt he wasn't able to put his side of things across last week when we published the administration news, so we appreciate him offering his perspective now. I encourage all to read what Justin has to say as he speaks with some candour about the culture within the company these past few years, that led to its eventual downfall.
However, I must say it's unfortunate and disappointing to hear that he has been targeted with threats and abuse since the news broke about the company ceasing trading. Even if people fundamentally disagree with the manner in which the business appears to have been run - an entirely legitimate point of view - it's simply not right for that to then escalate into nasty, personal attacks. This internet pile-on culture is completely unacceptable behaviour.
As I say, now that we've seen what has ultimately happened to the company, arguing that the business practice of racing to the bottom is wrong can be justified - abuse and threats cannot.
As mentioned last week, we shouldn't lose sight of the fact that some blameless colleagues have lost their jobs. I've heard from some more industry members this week who've echoed these sentiments. All have remarked how as a sector we can ill afford to be losing skilled and experienced people as a result of an event such as this. Dealers know how hard it is to attract new staff, so it is hoped that the individuals affected won't have their heads turned by another industry.
Justin mentions today actually, how he has spent time helping some ex-employees find placements at other dealerships. Hopefully this will work out for them and we wish all well in any new endeavours.
Wake up call
The other principal sentiment I've had mentioned to me this week is that what has happened to F.R. Jones needs to act as a 'wake-up call' for the industry.
Firstly and most obviously a wake-up call on pricing policies. Looking at what happened to a company as large as F.R. Jones, it seems clear that this super-discounting model is unsustainable. Volume over profit makes no long-term business sense. On top of this, as many have pointed out, it also succeeds in devaluing what should be viewed as prestige, quality machinery purchases - which doesn't not help other dealers who are trying to run a profitable company.
It has already been pointed out to me that of course F.R. Jones didn't hold a monopoly over this kind of wild online discounting. Others are continuing to do it as we speak. So whether what has happened will have an impact, we shall see.
The other wake-up call that dealers have mentioned to me, should be for the manufacturers they say. The stock loading, or piling of kit on dealers, who then feel pressured to shift it through the doors as quickly as possible, for little to no margin, needs to end. Dealers themselves want to have greater autonomy over how much inventory they carry at a given time.
We're actually running a brief survey on this today, asking if this practice is making you reconsider the number of brands you represent in store? We would be grateful to hear your opinions and we will run a selection in the next issue of the magazine.
Ultimately, as many have now said, there must be lessoned learned from what has happened to F.R. Jones. But will the industry take heed?
