Overachieving Down Under

All about JLM distributor GCG Turbochargers

GCG Turbochargers have been the JLM Distributor for Australia and New Zealand since 2018. At the last JLM Lubricants’ conference we caught up with Brett Lloyd Managing Director of GCG Turbochargers and Adrian Brangwin who heads up sales.

What is the market for new cars?

BL: Sales data is strong with growth in all areas. Car prices have increased. Dealers are unwilling to negotiate. Lead times are long, in some cases more than 12 months, yet it seems the order books are full at the dealers. Our own example is a new Ford Ranger 3.0 Twin Turbo Diesel, ordered in Oct 2022. Due for delivery, Feb 2024 at the earliest.

And for servicing and repairs?

BL:I would say with over 8 interest rate rises alone in the last 12 months, the pressure on the household budget is now so great that car servicing is being pushed out or being done at home. Our workshop customer while still busy and full, does not have the long lead times for booking in a service. It was up to 60 days but is now back to 14 days from initial enquiry to booking in.

Has this impacted on the use of additives as part of the service offering?

BL: With the pressure on household and business budgets, the service centres are doing the bare minimum required. So, if a JLM product will fix an issue cost effectively this will be the choice of service. If a JLM product is simply a maintenance product, then customer discretion is more likely. And a workshop will not load a quote with additional items for fear of losing the base job. However, they have the opportunity to upsell to a quality additive at the time of servicing. Whether the customer says yes, or no is of course dependent on their financial capacity and how the technician positions the additive. Will it save money in the long run? If they can talk about the money saving merits of the product, they are more likely to get customer buy in.

How are your JLM sales faring at the trade counter?

BL: Increasing at a decent rate! We are seeing more of the parts shops now stocking JLM as an alternative to the four big brands. And with the quality to give their customers the choice, the through sell is also quite brisk in the diesel and oil service products. We also set the buy in low enough to be attractive for a shop to get onboard with JLM and this works well at around AUD $1700 per stand. Relationship building with stores is crucial as is driving trade sales in the local area to that store so they can see within days or weeks there is a strong demand for JLM Lubricants’ products. We’re now seeing competitor activity with other Euro brands hitting the market because they can see the thirst for additives in the Australian market too. However, we are sharp with our marketing and have built a great reputation for our brand as well as JLM Lubricants. We are also looking to diversify our focus to the marine, motorbike, and commercial sectors. This spreads the risk, and because these sectors are largely untapped by competitors we can gain an immediate advantage.

How busy are the part shops in Australia?

AB: Spare part shops remain busy especially the really good set up stores with 3-4 staff serving at the counter and a rep on the road. I had one store yesterday tell me that since COVID-19 they haven’t stopped. Their business has increased every year with no sign of slowing down. This story is being repeated around Sydney. When a store is busy with customers coming in and the phone is ringing off the hook they tend to be more open to trying new things and stocking more new products especially if they can see the professionalism behind the brand. If it has a good name, good representation from a rep they all know, a comprehensive range with coverage at good prices plus of course great margins, you can make it a winner.

What are your goals regarding JLM Lubricants?

AB: Setting up many more stores to become JLM stockists is my overriding goal resulting in decent coverage all around the state for customers to find JLM products. The stores I am talking to also service the trade, in most cases with a 60/40 split -60% retail and 40% trade although this can be reversed depending on their set up. With inflation still high here in Australia and with the RBA putting up interest rates again it makes people look at where they can save money. So, if the workshop doesn’t get the job because of the cost, the end user will still buy the oil, filter and hopefully some JLM additives to do their own service at home. We don’t miss out because they are still buying the JLM product through one of our store stockists. That’s why it’s important to have as many stockists as possible stocking JLM Lubricants’ products so they’re available to the consumer at their point of need. So increasing JLM stockists in New South Wales and all-around Australia is my bold goal! When you look at the map you can see how big a goal this is, but I am confident of hitting it!

How do you promote JLM Lubricants products?

AB: JLM is a unique brand with a massive focus on high quality with decent margins for the store owner -not cheap and piled high like you might find in some of the majors. JLM products are profitable for the store owner, and they certainly like to put dollars in the till and into their bank. For the trade customers, JLM products are perfect for repeat purchase so the store owner can see high sales from repeat business. Because of these factors we are seeing an increase in sales and the demand for JLM products across the board. Our focus is on having real conversations with store owners, advising them of the positives of the JLM product range, taking in some of the iconic bestsellers and making sure they have enough point-of-sale promotional materials. I promote the top 20 JLM Lubricants’ bestsellers to the retail stores but offer complete flexibility for the store owner to change or add products so they are fully invested in the brand. We’re very much a service first brand and believe in building relationships and staying close to new and existing customers.

GCG Turbochargers’ Top 7 JLM Products