Brownhills Went Into Administration Last Night Forums

bandaid

I have a question which has been puzzling me for a while, reading this and other threads regarding this company.

If the company had gone to the wall and stopped trading, wouldn't alot of members ( and others) have lost an awful lot of money?

so,

Is it not better to have the buy-out as announced, so that investment isnt gone down the drain?

But

How will Brownhills convince the members of this forum ( not all, I know ) that the Buy-out teams promise of improvement is not an empty one, at some point a customer will have to bite the bullet and go to Brownhills and see what happens. A test case if you will. If good servie etc. is then experienced by that customer, will the doubt and distrust end, or, will it be " thats a flsh in the pan"?

How many satisfied customers will it take to dispell the problems, which members of this forum have experienced. 'cos to me, it seems, its going to be a long, uphill battle, with alot of casualties on both sides.

Accept I'm not being critical her, merely, trying to work it out for me 'ed like. Question

parigby

C..r...a...p smells the same. no matter what banner it lies under.

SpeedyDux

Fego raised a relevant point about MBOs. I would add to that what I learnt when I was involved in facilitating one.

The usual aim both of managers who buy out their company and (especially) the venture capitalists who provide the MBO funding is to maximise the value of the business and sell it on at a profit, usually within 3 years. Only a tiny percentage of the funding is normally provided by the management, but they stand to get a huge share of the capital profit if things go according to plan. MBOs make millionaires. It's the same whether the business makes widgets or distributes motorhomes.

The complex business plan - which customers will never see - will have financial projections for 3 years, and milestones/ targets that need to be met if the hoped-for "exit" price is to be achieved. Without such a planned exit strategy it is unlikely any institution would invest £46 million to finance an MBO.

MMP or Managing for Maximum Profit is the key to ramping up the price over the next 3 years. This inevitably requires hard-nosed management attitudes and very tight cost control.

So, you should keep in mind the old saying: "A long term investment is a short term investment that went wrong." The new Brownhills is unlikely to be held as a long-term investment.

SD

bandaid

Thanks Speedy, that was a financial post I actually got a grasp of.

MY question tho' I feel still is valid. How would you, on a relatively low profit per unit business, with high overhead costs, maximise the profitability in such a short time without a dramatic increase in customer servie, and how would any company turn this around in the time sclae you indicate.

lucy2

Now that the new mob are changing things at Brownhills maybe be coffee machine @ Club brownhills will be free of charge again!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Rapide561

Hi

Does anyone know the new company number of the "present" Brownhills?

Russell

Edit, by "present", I am referring to the Brownhills after the MBO.

Steamdrivenandy

The only way to register a significant improvement in customer service over a short timescale is for that service to improve exponentially and for customer's experiences to be so good that they voluntarily write in praise. This becomes self fulfilling as people read about the good service and decide to try it out for themselves BUT (ain't there always a but) the improvement has to be massive and sustained. That's very hard to achieve over a long period but even harder in the short term.

One thing Brownhills should do is invest in a good PR firm that can advise them on how to manage their relationship with the internet. Glossy websites saying all the things the management want to hear are just a token. Stocklists with super pictures and a really good look up system should be the norm. Booking services and selling spares and accessories should be standard fare. However the crux is how you manage the relationship with Forums like MHF (and the other MHF), Out & About Live etc. They are superb opinion formers now and will become even more influential in the future. So all big businesses need to think long and hard how they can get the best from them, because if they don't things can go totally the opposite way and the power of thousands of committed members can have a dramatic effect on their business.

Andy

geraldandannie · Moderator

gaspode · Moderator

Some very wise words there Andy.

Perhaps part of the "new" Brownhills philosophy may be to instigate an official presence here and on other consumer internet sites instead of ignoring our presence or relying on covert monitoring using anonymous user names?

I'm sure that this forum would welcome being part of their recovery plan and would love to see a positive interaction between MHF members and Brownhills. It can only benefit both trader and consumer in the long term. It's impossible to ignore the power of the internet these days so the sooner traders come to terms with it and interact responsibly with their customers the more likely their business will succeed.