Ripple effect as business comes to standstill

MOSSEL BAY NEWS - It is remarkable the multi-dimensional effect the lockdown can have on business people, their enterprises, staff, their suppliers, their clients and their clients' associates.

The ripple effect is enormous.

The Mossel Bay Advertiser contacted several small speciality shops to find out if they were still operating or not - and a separate article has been written on this.

However, another business contacted for comment on the lockdown was Vredebest Removals, Auctioneers and Trailer Hire, well known in Mossel Bay.

The current status of this enterprise provides an insight into how other businesses and their supply chains may be affected by the lockdown.

Respected in the Mossel Bay community for supporting worthy causes, Vredebest owner Selwyn Barnard was instrumental in the transport of much of the goods from Mossel Bay to Knysna after the 2017 fires left many homeless and he transported water to farmers in need during the drought over the past few years. Barnard has also done auctions for free to help raise funds for charities in town.

Complete standstill
Business has come to a complete standstill for Vredebest during the lockdown, because the services are not essential. "This has a huge effect on us," Barnard says.

"All my staff are sitting at home. We'll never be able to make up this loss.

"We have no income at this stage. In terms of furniture removal, there will be a ripple effect. It will probably take a while for things to get going again. We will be opening again on 17 April, after the lockdown.

"I still must pay rental on my buildings. We're doing no quotations during the lockdown. With furniture removal, most of our business comes from Gauteng."

Barnard pointed out that property purchases are not being registered during the 21 days. Many people who were supposed to move into properties could not do so. Everyone in the property chain is affected: sellers, buyers, landlords, tenants, transport companies, estate agents, attorneys, builders - the list goes on.

"It's actually going to be bad for two months after the lockdown," Barnard predicts.

'Tried to help staff'
"We've tried to help our staff. We aren't paying a full salary. Before the lockdown, on 20 March, we sent all our employees' forms to apply for UIF payments. If the UIF does not pay out soon, people are going to be without food. Everyone has bills to pay. Also, I don't know precisely how much my staff will get from UIF. We have heard different things."

Barnard employs 32 staff. "It's a large responsibility," he said.

"We have many people's furniture and household goods in storage - goods from 125 households on average every day. I hire four storage warehouses and I have 35 self storage units. There will be people who cannot afford to pay for storage.

"Building has come to a standstill."

Barnard's fortnightly auctions are also not taking place during the lockdown. His main clients at these auctions are second hand dealers, but they are not selling anything. "When the 21 days is over, people won't have money to buy furniture," Barnard points out.

• Tell us how the lockdown has affected your life and / or your business. Email lindas@groupeditors.co.za.

Removals and transportation, non-essential services, are not being done by Vredebest during the lockdown.