INTERVIEW – RENE BAKER SHARES SIMPLE RECIPE FOR SUCCESS
As a fellow female entrepreneur, meeting dynamic women who have made it in the business world – particularly a male dominated one – is heartwarming. Enter Rene Baker, a lady, who 10 years ago, took on a mammoth challenge, purchasing a shop that sells tyres and other underbody components to motorists, a business that was largely unfamiliar to her. Loerie Supa Quick, is now a respected fixture in the small upcoming city of George, in the Western Cape. Moreover, the fitment store is recording remarkable growth year-on-year. How did she do it? We caught up with Rene to find out.
Congratulations Rene. We are hearing great things about your retail operation. Talk us through your career path and what led to your decision to enter the automotive sector.
At the beginning of my career – 42 years ago – I had followed my childhood dream, to become a mathematics teacher, which I achieved, in 1981. I then went on to teach for three years, before finally deciding to explore other opportunities. Why, you may ask. I don’t need to tell you what teachers earned in those days – very little! The need to supplement my income combined with a newfound fascination for sales, led me to what I describe as the second chapter of my career, in sales, marketing and even manufacturing, in the décor industry, specialising in mirrors, paintings and photo frames, for the mass market(I managed a factory), a venture that took me to 2014.
I was financially and emotionally supported by many wonderful players in these 34 years, and I couldn’t have achieved my goals if not for all of these supportive people. However, I must make mention of J. Daynes, M. Formato and P. Gokool, and S.McCann, men who saw my potential and who believed in my abilities. One day, scanning the workplace for possible opportunities, I came across an advertisement of a franchise store that was up for sale, in George. Having yearned to leave the hectic pace of Johannesburg and retire there someday, the advert immediately caught my eye, especially as the store in question was a Supa Quick franchise, a brand I knew and respected. A perfect step to semi-retirement, or so I thought. The rest, as the saying goes, is history.
Were you not a little intimidated to take on a business that was a total departure from your previous skills and experience base?
To be honest, no. And the reason for that was due to a young man who had been working for this particular fitment store for 8 years at that time. Although the owner was selling, Divan was keen to remain with the operation, and so Divan and I made a pact to support each other through this venture. His knowledge and relationship with the customers was unmatched and I knew I could rely on him to steer me through the intricacies and complexities of the business.
He remains with me to this day. Additionally, although one might be forgiven for thinking that the decor business is female dominated, this was not the case during the time of my involvement. All the buyers and managers I dealt with were men, although this slowly began to change over the years as women became more empowered. In short, although the two markets were vastly different, I was used to trading in a male dominated environment, and this held me in good stead in my new venture.
You took over ownership of Loerie Supa Quick in 2014. What were some of your first experiences and what initiatives did you introduce to take the business to the next level?
What instantly springs to mind, is the time I panicked, hastily refunding a customer after he challenged me on price, claiming I had over-charged him for his tyres. The pricing issue in this industry – still prevalent to this day – took some time to come to grips with, but eventually I learnt that charging fairly, whilst not giving in to the common practice of discounting the product, was the wisest route to take.
At that time, the market in George was largely overtraded, as the city was still small. Back then, retailers made a meagre living, at best. Thankfully, the marketplace is changing, with George undergoing a growth spurt. Despite this, no new stores have opened, although we do find current stores switching alliances. Thankfully, I believe that I am connected to the number one franchise group in the country, in terms of the overall basket, so I have not had to contemplate switching to another brand. I have also opened up a dedicated section at the back of the store with extra lifts, to offer what we refer to as the ‘dirty jobs’, exhausts, shocks, brakes and the like.
We also provide a professional air conditioning service, which is being well received, in contrast to those being offered on the side of the road. That being said, although we offer the full spectrum of underbody services, tyres continue to make up close on 70 percent of our total sales.
What sort of assistance does the Supa Quick franchise office provide?
With motoring fleets making up a sizeable portion of our business, the Supa Quick franchise head office negotiates all national deals on our behalf, alongside continuing to ensure their franchisees receive the best possible deals and rebates on product. Plus, with the group now operating as an open channel, we also have the freedom to compete on other brands.
Given the price-sensitive nature of the market currently, there are times when we will challenge Head Office on certain decisions that may impact on our margins, and that is to be expected. But overall, I believe they provide us with the best possible support, wherever they can. It is not often we come across retailers who are not expressing frustration over the lack of support they allegedly receive from their franchisor. Your views on this hotly contested issue are refreshingly different.
I learnt this lesson long ago, to now allow the negativity and noise surrounding me detract me from my core purpose and running my business as I see fit. In 1984, when I first became involved in the framing and painting sector, China was just emerging as a world player and suddenly, the market was flooded with a multitude of suppliers. Back then, I took the decision to continue to focus on my business and product offering, by cultivating strong relationships with my clients. After all, people buy people! I firmly believe that.
I carry that lesson with me to this day. My motto is this: support your suppliers, but at the same time, do everything you can to satisfy the needs of your customers, within reason.
That is not to say that we don’t have our share of frustrations with our franchisor, at times, but we do not let these issues overtake us, and become the focal point of our business. In my case, I am happy, and frankly, lucky to be associated with Supa Quick. The brand is not only strong, it is the longest, most sustainable brand in the market.
What do you believe differentiates you from your competitors?
I operate on a simple set of basic principles: acknowledge the customer when they pull up to your store, irrespective of how busy you are; help them as quickly as you can; offer to take them somewhere or drop them off at the mall, if the job in hand is time consuming; offer them a space to work, complete with wifi in-store, and the like. It’s the little things that make the difference.
We have several retirement communities in our area, and should senior citizens be unable to start their car, (on suspicion of a flat car battery), we will go out to them to identify the problem and fit a new battery, if required. In short, we make the most of each and every opportunity to meet the customer’s needs.
How do you deal with a customer who is pressing you for a better price?
As a rule, we do not become entangled in the pricing war. On the odd occasion, should a customer come in, armed with a better price from an opposition store, we might concede, but simultaneously, we are quick to point out that in all likelihood, the ‘better price’ they got is because that particular store is running a special, and that this is not the norm. Notwithstanding, our prices are not overly inflated.
They are reasonable, which is why it has taken us 10 years to arrive at a profitable level of trading. Which is not to say that we don’t strive to assist our customers, with regular patrons often paying less for affiliated services such as balancing and wheel alignment, where and when we can. It is all about reading your market. What may apply in Johannesburg, may not work down here in George. Thankfully for us, with so many people ‘semigrating’ to the Cape, the store is well positioned to grow its current turnover further, over the next five years.
How would you describe your management style?
I believe that people deserve respect, but they need to earn it. This applies to both staff and management. My staff know that they have the freedom to operate, but within certain parameters. Should they need to overstep these parameters, they need to check in with me first. I would sum it up like this: my job is to negotiate, constantly, with staff, suppliers and customers. I give in when I need to but I also dig in when I need to!
What would your advice be to other prospective female entrepreneurs?
To learn from the very start of their careers not to expect to be treated differently due to their gender. There is no special treatment in business. More important, you should naturally aspire to being treated equally by way of respect, remuneration and professionalism. Believe in yourself and your capabilities and don’t be afraid to ask questions! There is no shame in confessing you don’t know something. That is how you learn.
Learn everything you can about your respective business sector and commit to selling your personality, not your looks! Show your staff that they are an integral part of the business, and that without them you would be lost – a sure way of achieving unending loyalty. Finally, establish the necessary support systems – both at home and at work – that will contribute towards achieving your goals.
