BAGMA Cover: Major Owen
Major Owen was first established in 1977 by Major Raymond Owen and has since enjoyed a successful 46 years in business holding reputable brands such as Kubota, Toro and Honda, to name a few. Based in the town of Penrhyndeudraeth in North-West Wales, the company came from humble beginnings with the business operating from Major’s garden shed at his home. Now, Major Owen boasts a purpose-built premises complete with a large workshop, yard, and sizeable showroom, located just off the busy road to Porthmadog, Wales.
After re-joining as a BAGMA member earlier in 2023, we spoke with Director and Major’s son in law, Andy Jones about the business.
1. Tell me a little bit about how the business has changed over the last 46 years and how you became involved?
There has been huge change for Major Owen over the past 46 years with the business growing from strength to strength. I joined around 39 years ago after I met Major’s youngest daughter, Major was looking for a mechanic and so I started when he was based in the old Town Hall, there was only 4 of us working then. We specialised in the domestic market focusing on chainsaws, ride-on mowers, strimmer’s and developed that from 1984-1986, then in 1987 Major was offered the Kubota franchise which was a huge milestone, and it all grew from there.
Major’s other daughter Debbie, who is married to David Burnham, and they both worked within the business, I was still working as a mechanic and David was out selling, it was great to have family involved in growing the business at such an exciting time. We were selling a lot more Kubota machines since the appointment and naturally my role evolved into installing machines and then selling which I moved into full-time shortly after. We were covering a huge geographical area and so it was necessary for me to get more involved in that side of things and in turn we took on more mechanics and a parts person to look after the aftersales part of the business.
2. Your beginnings started as primarily a groundcare dealer? How has the business changed and adapted to suit the growing market demands?
We have grown our groundcare business over the last 46 years and with great brands in our portfolio, we have been able to establish a loyal customer base and a good reputation in the area. We have always been proactive in recognising shifts of demand and in 1991 specifically we noticed a boom in the golf industry. With a great product to offer them from our Kubota portfolio which was quickly complemented by a further appointment as Toro dealers in 1995, we felt we had a great package to get out there and sell. I took it upon myself to focus more of my attention on golf courses and growing that part of the business which remains a strong area for us today in which we have a dedicated golf sales representative.
In terms of changes to the portfolio, in addition to our Kubota groundcare status we were awarded the Kubota construction range in 1992 which presented lots of opportunities. The range has allowed us to get in front of more customers, the strong reputation that Kubota holds has only strengthened our position as a top choice machinery provider in the area. Today we have a dedicated sales representative for all our construction business.
Following the 2008 recession we really did change how we ran and operated our business. We knew that we couldn’t expand our premises any further, and we even investigated developing at another site, we decided that the cost involved at that time was not justifiable. So, we focussed on having more guys on the road with sales representatives that live across the patch and work remotely which is still the case now. It works well for us.
3. Does the company remain family owned?
In 1997 Major retired from the business which meant that myself, David and our wives, Major’s daughters, took the business on. We were excited and the four of us worked hard to see how we could evolve the business further. David retired from the business in 2008 and that meant myself and my wife took over the ownership. Since then, the business has continued to grow, Debbie is still working within the business, balancing the books and is a great asset as well as her daughter Maddie who works with us on our advertising and marketing. My brother Rob is my Workshop Floor Manager and has worked with me for over 30 years! I also have my two sons involved in the business, Luke my youngest has been full-time with us since he was 18 so just under ten years, he has worked his way up through the workshop and is now the aftersales director. Then my eldest, Josh he is involved in the financial strategy side of things, which he has always enjoyed, he has helped me a lot with forecasts and financial planning. As the business moves forward and I eventually step back, they will be more involved and it’s a nice legacy to be able to pass on. Especially when you consider that even before Major started the business his father was working on chainsaws and mowers in the late 1960’s. It is truly part of the family’s history.
4. What are the company's biggest challenges and opportunities?
Like any company we have had plenty of challenging times, the pandemic presented a variety of challenges a big one being stock issues. Even when you have limited equipment to sell and a tough situation to go out and sell in, you still have to pay peoples wages and all your business costs. Although COVID times were very busy for us because we are quite diverse in our offering and had stock, it was still a very challenging time.
Another huge challenge and probably the biggest is recruitment, it was hard to find good people before the pandemic, but now, it just seems virtually impossible. I know this is an industry wide problem and it doesn’t seem to be improving quickly. It isn’t just mechanics either, it’s across the business in parts and sales as well. We are in an area that is more sparsely populated which can make things harder, but we are trying to work closely with Llysfasi College near Ruthin as they now have a joint venture with Kubota for their apprentice scheme.
From an opportunity perspective, we just need to make sure we are keeping things fresh and we keep pushing everything forward, having the younger generations coming into the business will definitely help with this.
5. Is there anything significant you think you have learnt following the pandemic?
I would say we all learnt to adapt and overcome because it was necessary. We learnt more about the business because it gave us time to take a step back, take a breath and focus on business development.
I think one of the biggest downsides for us as dealers following the pandemic is the ramping up of prices, we have experienced significant increases, in some cases up to 22%. We know that the brands that we hold are reputable, premium products but we also want to remain competitive as well as make margin so it’s a fine line. Prices seem to remain inflated today and we have found that there are competitors offering silly discounts just to get the deal which is a shame because it makes the job even harder. There is business out there for all of us and we all need to be sensible to ensure we don’t devalue the brands we hold.
6. If there was one bit of support you could ask the manufacturer for, what would it be?
I mentioned it before when asked about business challenges, machine stock is a big one. It is a concern that there is more and more pressure being put on us to carry additional stock. Our main manufacturers are ok, but I do think across the board they need to realise that there is only so much we can financially afford to stock. If they could be more flexible to facilitate affordable stocking, maybe rolling it over for a small charge, it would be great to have options. These conversations need to be happening and there needs to be a level of understanding of the pressure of inflated prices and stocking expectations for us as a dealer.
7. What’s the most important thing that customers come to Major Owen for?
I would hope it is for the after sales more than anything else because that is how we have grown the business. With reputable brands such as Kubota and Toro, you know the machines are quality and so ‘touch wood’ we find that things are reliable and that customers don’t get much trouble. Being totally honest, issues usually come down to neglect, dirty fuel or misuse. But, if someone bought a machine from us, then I would like to think they have that peace of mind that if something was wrong, we would get it sorted and whatever they need we can provide a solution.
8. Do you have quite a loyal customer base?
I would like to think so, but the market is becoming more price driven, if there is a significant price difference in a machine, then you can’t blame a customer for looking elsewhere. We don’t doubt that we have competition to contend with especially as we cover such a large area, it might not be as densely populated but it can be a challenge. We have local competition, but we also see it coming in from Shropshire, Cheshire and South Wales. I do think that the fact we have been around a while, and we have held the brands we have for a long time helps with retaining customers and bringing in new ones.
9. How big is the team? And how is it split between parts of the business and departments?
We have just over 25 team members throughout the company with eight mechanics, four on the road, two service administrators, and four sales representatives that a located across the area.
When it comes to the divisions within the company, our construction business is probably the larger part because the equipment is of a higher cost and that accounts for around 60% of the company sales with groundcare making up 35% and the rest coming from the domestic market. Our showroom does well, even in the modern days of the internet, a lot of people do still like to come in and see the product as well as chat through options with a member of our team.
10. How do you create a positive and productive work environment for your team?
We try our best to keep everyone happy and encourage a good environment, we do the usual things like Christmas parties, birthday cakes and bacon rolls on a Friday, but we just try to keep that feel good factor and most importantly an open line of communication. I have always said to the team that my door swings both ways, if they have a problem or something on their mind, then they can come and talk to me. Then on the flip side, if I am concerned about something, I will go and have a chat with them. I like to think everyone feels appreciated and valued which can be tough when you are on a cold, wet horrible day trying to fix something, but we all do fantastically well.
11. How do you find recruitment in this area of the country for your business?
It can be challenging, and we advertise in the usual ways, but we just find the current general calibre of applicants isn’t where it used to be. Around this area there isn’t so many options for employers and if people want to stay local then they might come to us, so that is positive We do find that we retain staff quite well and the people that have been with us a long time really loyal.
12. You recently re-joined BAGMA as a member, welcome back!
Thank you, we were BAGMA members going back to the 1980’s but the membership lapsed, not for any reason in particular. We then made contact again this year and are delighted to be a BAGMA member again!
13. Have any of the BAGMA services attracted you?
Yes, the training courses will definitely be beneficial. We have done some of the installation courses through Kubota before, but we will be looking into utilising more of these ourselves going forward.
14. What does the BAGMA badge mean to you?
It is great to be affiliated with an organisation like BAGMA that is recognised in the trade and well-respected. It brings a value to us as a business from customers seeing that we are a member but also from the value they give us as members.
15. What do you think are the biggest threats to the machinery industry in the next five years?
Apart from the obvious recruitment, I would probably say finances. Since the bank rates have gone up there is definitely more uncertainty. We have introduced slightly different finance schemes to help, especially with the bigger equipment, spreading the cost over longer periods which doesn’t worry us because of the quality machines we sell, but gives the customer more options. There is also options for paying more in the times of year where the customer is busier, matching their cash flow patterns. We will have to become more adaptable while borrowing isn’t as attractive, it’s about the customer feeling comfortable.
16. What does the future look like for Major Owen?
I would like to think very bright and positive. Having my two sons involved has been great and they are keen to move things forward, they have their own ideas which is what it’s all about. We want to keep being proactive and listening to what the customers’ demands are, keeping ahead and making sure we remain competitive. We are firm believers in slow and steady wins the race and we plan on being here for the next 46 years!