FIFA WORLD CUP FEVER HITS BURCHMORES

BURCHMORES SAYS: Bafana Bafana shirts are not the only commodities flying off the shelves… people transporters are the hottest item in the used vehicle market as companies and individuals alike fleet up ahead of the FIFA World Cup. And, just like Adidas, which has revealed that it cannot produce football jerseys fast enough, Burchmore’s is also battling to meet demand.

The impact on both the new and used vehicle market is considerable, with businesses and entrepreneurs eyeing the opportunity to turn a fast profit. According to Darryl Jacobson, managing director of Burchmore’s, the company is receiving daily enquiries at its three branches (in Durban, Cape Town and Johannesburg) for people transporters. “I have personally received 10 enquiries in the last fortnight,” he notes. “And, at each of our branches, we are fielding daily enquiries. It’s definitely a case of football fever has come to town!”

Some buyers are purchasing people transporters off the floor while other customers, eager to snap up a bargain, are bidding against the trade at auctions. As a result, registered buyers at auctions are way up on 2009. “Obviously the World Cup is just one factor, but it has certainly resulted in more registered buyers at our auctions,” comments the Burchmore’s MD. Over the first two months of 2010, registered buyers at auctions around the country were 24.3% up on the same period last year, with the bulk of purchasers being private buyers.

Jacobson says that Burchmore’s is noting demand across the vehicle spectrum. “Of late, we have experienced massive demand for 16 to 18-seaters, but we are receiving enquiries for all sorts of people transporters – from vehicles that may be considered mom’s taxis to huge buses,” he reveals.

Enterprising entrepreneurs are also snapping up luxury sedans. “Some of the budget airlines have advertised the fact that they will offer tickets at affordable prices over the World Cup. However it is doubtful that each and every fan will benefit from these so-called ‘cheap’ tickets. Given the non-availability of ‘cheap’ tickets and the high price of regular air tickets, many South African entrepreneurs envisage offering a cost-effective transport alternative to visitors. It may be a more enjoyable alternative too. After all, why fly to the host cities when you can be transported in a luxury car and enjoy all the sights and sounds of our country en route?” he points out.

Local businessmen, who have turned to Burchmore’s to source people transporters, have revealed that many visitors fear driving in South Africa. “Football fans obviously have the option to rent a car while they’re in South Africa. But, according to our customers, they are hesitant to drive in our country for numerous reasons. One of the prime reasons is security; they have heard horror stories about vehicle hijackings. A second reason is road safety; as they do their research, they have discovered that South Africa has a notorious road safety record. Visitors to our country don’t want to become yet another statistic,” notes Jacobson.

Then there is the issue of signage. “It has been acknowledged that it’s often difficult to find your way around our cities – signs are either missing or road names have been changed, making navigation exceptionally difficult,” Jacobson points out.

Then there are two other major challenges for visitors: the condition of our roads and the fact that many football fans are not accustomed to driving on the left-hand side of the road. “We all know that potholes have become a way of life in South Africa; the Gauteng government has acknowledged that, as a result of a lack of money and technical capacity, 56% of this province’s road network is beyond its design life,” reveals Jacobson.

Does this sound like a doom and gloom scenario? Not for the used car business. “As a result of these factors, many visitors don’t plan on hiring a car when they arrive here. Indicative of this trend, we are inundated with demand from buyers who want people transporters in some shape or form. I only wish that we had more stock so that we could meet demand!” Jacobson comments with a wry smile.