Schmitz Cargobull’s used trailer business has a robust operation in Europe with multiple sales locations across the continent. With the demand for trailers growing globally, the company has developed its Value Added Services (VAS) tremendously. Schmitz Cargobull has enhanced its service offering by developing other aspects of the customer journey such as trailer telematics, financing and full-service contracts.
Headquartered in Horstmar, Germany, Schmitz Cargobull celebrated 130 years of business in 2022. It all began when Franz Heinrich Schmitz bought a small smithy from his father in Altenberge in 1892 and built the first trailer in 1935. From then Schmitz’s business has been handed down from generations of the family and with the need for trailers growing, the company has also grown and branched out operations to many countries in Europe from the early 1980s.
The main countries of business for used trailer sales are in Europe, the Caucasus and the -stan areas (Afghanistan, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan). “Currently we see a high demand from the Baltic nations. In the last two years, demand from Middle East and Africa is lower, due to high shipping prices, plus the generally higher price point for used trailers in Europe,” says Luc Kessels, Deputy Head of Used Trailers at Schmitz Cargobull. “We are also seeing an increase in demand for newer used trailers in our home markets of Western, Central and Southwest Europe.” The company continues to establish new used trailer locations, with the main European countries all having subsidiaries and ample trailer stocks.
Sophisticated network
Most of Schmitz Cargobull’s stock of used trailers comes from trade-in, buyback obligations or end of lease and default leasing cases. “Nowadays, 50% of our stock is free purchase. We buy from dealers, traders, transport companies, banks, and auctions,” continues Kessels.
The company’s sales representatives have the authority to buy and sell the used trailers. With a robust centralised computer network, all purchases and sales details are inserted in the system for management approval which is usually a quick and easy click of a mouse.
The company uses a front-end sales and purchase system which is central and accessible to their entire network of 32 used trailer stores throughout Europe. Each access point can view the entire European stock (including pictures, prices, quality checks, available options on each trailer etc). All incoming and expected stock of equipment that is bought or returning soon from financing or buyback obligations is visible to all users. The network also shows each trailer’s historical buying and selling price simplifying the decision-making process for the management.
“We are flexible, fast, and structured in this way. We keep track of thousands of purchase prices, because our centralised and efficient system is up to date and tracks the changing market prices,” says Kessels.
Standing behind their product
Ninety-nine percent of Shmitz Cargobull’s products are standard trailers, curtainsiders, refrigerated, container chassis and tippers. “Our annual sales are usually 10,000 units per year, however, in the last two pandemic years the demand was very high and due to not enough supply we were only able to sell around 6,500 units, and as you can do the math, there wasn’t a change in our turnover numbers,” says Kessels.
Schmitz Cargobull deals in their own products but does buy and resell other brands. “We prefer our own brand of used trailers,” continues Kessels. “We buy trailers between one to seven years old, and most of our stock is this quality as it is our strength, and it is what makes us a market leader in the sector. Our expertise is also for this range of trailers.”
Most countries which have the company’s presence, buyers have the facility of being able to refinance the used trailers as well as receive full-service contracts and telematic contracts via the company’s own subsidiaries – Cargobull Finance, Cargobull Telematics and Cargobull Parts & Services.
Schmitz Cargobull has more than 3,600 service partners globally that take care of service and warranty for buyers wherever they may need it. Used trailers do not get full guarantee, but the company supports their customers should any problems arise. “We have a sound reputation; we stand behind our products. I’ve been with the brand for almost 18 years and have never heard of any serious problems with the used trailers that we have sold. We work with our buyers, find solutions, supply parts, or take the unit back in case of an unsolvable or unforeseen problem,” says Kessels. Reputation and long-term cooperation is key.
Full-service contracts are provided for used trailers, especially for the reefer trailers that have the Schmitz Cargobull Cooling engine. The cooling engine was first introduced in 2014, now almost 20% of all Schmitz Refrigerated trailers leave the factory with their own engine.