North West Vending

Forum of Private Business member, North West Vending, is fighting the effects of the recession by diversifying into new markets and investing in the long-term future of the business.

Mike Cowley, Managing Director of North West Vending, is a plain-speaking northern entrepreneur. While his business has been hit by the recession, he says the situation has been made immeasurably worse by red tape that is "a joke, utterly over-the-top", imposed on it by a government that "doesn't understand the needs of smaller firms".

But far from being downcast by the economic downturn, he has come out fighting, recently taking on staff and launching a new division of the company to tap into a large market.

North West Vending, based in St Helens, was founded in 1972. It started life simply supplying hot drink ingredients to companies running their own vending machines. Mr Cowley and his wife, Vicky, bought into the business in 1992, and soon realised that they needed to act quickly and radically if it was to grow. Customers were increasingly outsourcing their vending requirements to firms that could supply hot drinks machines as well as their ingredients so, to satisfy this customer demand, they started to source and supply the machines too.

North West Vending aims to provide the most appropriate solution, from the smallest office simply needing hot drinks, to factories employing thousands that require a fully-automated restaurant, or a fully-manned catering service.

"... Employment law is an absolute minefield – as if it isn't difficult enough to keep a business afloat in the current climate."

- FPB member Mike Cowley,

North West Vending

"We constantly strive to offer the highest levels of professionalism and service in all that we do, without compromising our traditional family values," says Mr Cowley. The philosophy has served the company well. It has grown from ‘one man and a van' turning over less than £50,000 in 1992, to a 50-employee business with a turnover of around £3m today. It has grown every year – until now. "I'd be very pleased if we stand still this year," says Mr Cowley. "It's not just the credit crunch. Red tape is making it a darn sight worse – a lot of small businesses are going to struggle, they really are."

But Mr Cowley and his team are driving the business forward into new territory. Last year, North West Vending launched a new division called Coffee 1652 to target the coffee shop and restaurant market. The move is a response to the blossoming of high street coffee shops. This market is focused on quality coffee that is not traditionally associated with vending machines, hence the need for a fresh, upmarket brand.

Mr Cowley says that North West Vending's products have to be excellent and its prices are "not the cheapest, but not the most expensive either – good value for money". Above all, though, he is adamant that success will be founded on its service excellence, built on long-lasting business partnerships and personal friendships. "Our success is built around people – we like to have a human face and get to know our customers," he says.

He is confident that the diversification strategy will pay off, with the company positioned well to come out of the recession in good shape. "We're small and we're in very competitive markets, but we punch well above our weight," he says in typically combative style. "We'll give it a bloody good go!"

My FPB

North West Vending has benefited hugely from the practical advice and support provided by the Forum, particularly in battling against red tape.

Adrian Dawes, the company's Operations Director, says the Forum has been particularly supportive over some long-term staff issues. "Recently we've had a number of complicated cases involving recruitment, retention and long-term sickness absence," says Mr Dawes. "Employment law is an absolute minefield – as if it isn't difficult enough to keep a business afloat in the current climate."

Mr Dawes says the Forum's helpline is always on hand "as and when required", that its advisers always have a firm understanding of the issues facing smaller firms, and they give "clear, well-presented guidance".

"They've helped us to look after our people properly – by offering up-to-the-minute legal advice – and keep the continuity of business we need," he says. "I'm glad they're there and grateful for all the support they give. They do a pretty damn good job."

Click here to join the FPB.

Email:
eNewsletter archive