A NORTH Yorkshire company is hoping to revolutionise the vehicle breakdown recovery industry in the same way that easyJet and Ryanair have transformed air travel.
NCI Vehicle Rescue, based in Harrogate, is marketing its product as a low-cost alternative to vehicle recovery companies the AA, Green Flag and the RAC.
The business model operates in a similar way to Green Flag, by using a network of more than 4,000 independent recovery agents across the UK, rather than directly employing staff and operating a vehicle fleet.
But founder members Neil Richards-Smith and Craig Jewell used their insurance background to take it a step further.
While the RAC and the AA take a portion of a customer's fee and put it aside in case of breakdown, NCI takes a smaller amount and uses it to insure them against all breakdown charges.
This set-up enabled it to reduce its costs base, offering products at up to 60 per cent cheaper than its main rivals.
Mr Richards-Smith, NCI managing director, said: "We convert around 75 per cent of inquiries into customers, which are the sort of figures any company would kill for.
"Our biggest problem is that people do not know we are here, and we have not got a £30m marketing budget."
The business was established in 2000 to specialise in packages for motorcyclists, but expanded into the car recovery market last year.
It employs eight people and last year had a turnover of £500,000. This year, turnover is expected to be more than £1m.
It has 40,000 clients across the UK, but is convinced the low-cost approach can help it poach more of the RAC's 12 million members and the eight million signed up with the AA.
This month, NCI secured a deal with the British Motorcyclists Federation (BMF).
It means NCI has replaced RAC as the BMF's sole recommended provider for cover to its 140,000 members.
Simon Wilkinson, BMF chief executive, said: "Like for like, NCI provided a more bike-specific service and a much more competitive price than anyone else we spoke to.
"We are delighted to be able to recommend them."
Mr Richards-Smith, a motorcyclist for ten years, said: "On price, we knock spots off the likes of the RAC, and on service, we are their equal, if not better.
"But it will be a long time before we have any serious impact on their business.
"If we can achieve a tenth of what they have, I will be a happy man."
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