SOME AFTERMARKET BRANDS WILL LOSE SALES
AND CREDIBILITY AGAIN THIS FALL
It appears another cycle has started again.
Over the past ten years it has been discussed many times however it seems the industry is determined to do it their way with the quick fix method. They then will blame the poor quarterly sales and profits on something else instead of squarely on Management.
I am talking about aftermarket parts pricing as well as part function.
There are Aftermarket Brands that continue to fail to take their time to do their homework as they are not pricing themselves against OE parts. When a shop is loyal to their chosen supplier as well as a manufacturing Brand, and makes that first and only call to their jobber to purchase an aftermarket part to then find out, after the fact (the hard way), that the OE part from the dealership retails for less than his aftermarket actual part cost, all trust and credibility is destroyed between the Brand and the shop owner. The Jobber is caught in the middle of this storm as they continue to lose sales to the OE arena.
Shop owners will now start taking additional time to check OE cost for key parts because they don't want their clients to be over charged and potentially lose the customer/client over the price of a part. Trustworthy client relationships are critical today and especially during challenging economic times. The better shop owners are always looking out for their client's best interest.
How could our industry fall off the wagon so easily?
Now we are also starting to hear, once again, that the Aftermarket part function is not up to standard. Why are Name Brands sourcing parts off-shore without monitoring quality in favor of perceived quick profits to then have the part fail time and time again?
The aftermarket must continue to have a strong dialogue in regards to these issues and manufacturers must insert the disciplines to ensure they excel with their Brand. Let's face it, cutting corners for the quick fix today is costing everyone money, time and credibility in the long run. During these different economic times, quality, fair pricing and top level service is so necessary to maintain the shop and consumer's confidence and trust.
Let's keep the dialogue open.
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2 comments:
Bob, you are 100% on the mark! To further complicate the issue, one often finds price variations within the dealership families themseleves. For example, if one gets a quote for the identical part, from the same type of dealearship, but in different cities, one often finds price variations. Go figure?? The challenges that the aftermarket faces when positioning thousands of skews is a challenge to say the least. Good comunication from the service providers to the aftermarket distributors and manufacturers is essential! Thank you for bringing the issue to forefront as we must work together to maintain our competitive advantage and shape our future.
Professionally,
Glen Matthew
APD-Automotive Parts Distributors
Marketing Manager
403-885-5800 ext.116
glenm@apdaprts.ca
www.apdweblink.com
This article highlights a problem which has been ongoing for many, many years. This is nothing new but it's very good to see it exposed in a national publication. I first noticed common Japanese import parts, such as filters, gaskets, PCV valves and the like, priced much lower at the OE dealer than most jobbers some ten years ago.
I live in a two jobber town, I know both the owner's both personally and professionally and I've been telling them for over a decade that they're not losing my parts sales to their jobber competitor. Rather they're losing it to the OE parts department. And not due to price, rather it's a Quality issue.
Plain & Simple, if I have to wait for an electronic sensor that I've had trouble with from a jobber supplier, I'll order OE. At least that way I know when the part arrives: a) it will fit, b) it will do the job for a respectable length of time and, c) I won't be replacing prematurely and losing money.
My two jobber owner's just don't seem to be listening. Which is too bad becasue I'd much rather give them my business...
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