Wednesday, October 27, 2010

Industry Jobbers Must Get Involved

Last week I had the opportunity to attend the Automotive Industry Association's Industry Forum in Toronto. The venue was excellent. The agenda was excellent. The topics covered by the speakers were very pertinent.

Manufacturers were present. Warehouse Distributors were present. Jobbers were but a handful which lead to a weak turnout of Service Shop owners.

It is frustrating to watch AIA Canada make such a strong effort to bring the right information to the Aftermarket, yet they are not supported by the "division" that can truly carry the message and be the catalyst to make the change required in the Aftermarket industry.

Consider this: The Jobber can deliver the message of such an event to every shop they deal with and invite them to register and participate with them. It should be a mission to get as many of their customer base to participate in such an event because specific "education" is invaluable. Better yet, the Jobber could bring their top 10 shop clients to such an event as their guests. The opportunity to build relationships at such a function is so huge as you would have the opportunity to discuss each message delivered by the chosen speakers that the Jobber and shop owners attend together.

Why is this not happening? There are a few reasons and let me be perfectly clear, not all Jobbers fit this mold but unfortunately just too many do.

1). Lack of Respect for their customer base. Those Jobbers talk about their "Installers". Buy using that word alone proves these Jobbers don't even understand what their customer base does today. They talk down about their shop customers because they do not have solid business relationships in place that builds a "client" relationship. The Owner of the Jobber business does not even get out to meet and THANK his customers for their business. "That is the sales reps job". WOW.

It's time to challenge every Jobber to three questions: A) List 5 positive things as to why your Jobber business is great in these different economic times? and B) Do the top 10 shops in your market area make your business absolute first call? If not, WHY not? C) Do you know how to mathematically calculate the potential Aftermarket parts purchase volume from each shop you sell to and are you capturing 85% of that potential? If not, WHY not?

See if you can get a clear defined answer to those three questions. The answers will tell you a lot about the "person" in charge as you watch their eyes closely as they answer such provoking questions.

2). Lack of defined purpose for their Jobber business. Perhaps it IS time to get out of business as these Jobbers have no game plan (vision) to grow their business and offer real value to their shop clients. These Jobbers define value only through price. They are as bad as many of the shop owners they sell to...they just don't get it! ....and they complain about the shop owners. It's as simple as this...you market on price, you attract price focused people.....you market and educate on true value and you attract value focused people. Everyone is selling today to the exact people they went after. You win!!!, why are you complaining?

3) These Jobbers look at every dollar going out of the business as an expense. They themselves do not understand "Investment". The fact is there are expense dollars and investment dollars. Ask these Jobbers "How much do you "Invest" into your top 30% of your clientele each year and how do you measure the return? What realistic time frame do you expect to see a return? Most Jobbers with the wrong mindset want instant gratification (that magic silver bullet) rather than look at a 20% to 25% annual return as reasonable in these times.

Jobber must get involved because they can truly make a difference. Read the article about KC Automotive in Owen Sound (Jobber of the Year) in Jobber News. They "GET IT". There are more across Canada truly trying and investing to make a difference, but are pulled down by the many Jobbers who do not participate, complain, mess up the marketplace and think only of today.

The same thing is said from the best shop owners. The best shop owners will help any peer who wants to truly move forward and they will dedicate almost unlimited time to help that individual, but the bad shops just pull them down and give the public a poor industry image.

Isn't it amazing how the two divisions of the Aftermarket parallel each other?

Food for thought.

2 comments:

RGJ said...

Bob, as a Sales Rep trying to bring value to "Clients/ Customers" it certainly gets frustrating when these Business men only are focused on price and not wanting to stock any inventory to make it a little bit easier on my order desk and delivery drivers. These guys want it cheap and they want it fast, so they can get the most from their customer. They don't like Sales Reps, even though they too are a Sales Rep for their company, they don't get it. Imagine what would happen to some of these guys if they took a sales course, or a negotiation course, as well as attended a business developement course. Maybe they would get off the cost kick and start to focus on profit instead. I actually had a Client buy a bunch of filters from a company that was going out of business, ask me to go out and sell them for him. A couple weeks later after I told him no, he came to me and said that I had one of the toughest jobs he's ever tried to do. He now has a new respect for Sales Reps, after his veture out into the world of selling to his peers. Today, this man is now a Client and one of my best and most profitable shops. I agree with you, I think that it's time for this industry to start to educate themselves and become better than we are today, if not for themselves and their famlies, then at least for their clients.
RGJ

Debra Serrao said...

We are an aftermarket jobber located in Brampton, Ontario and are very interested in becoming aware of these events such as the forum you mentioned on your blog. We wil be looking into joining the AIA and maybe this way we will be beter informed of these events.
Thanks
For Parts 2 Go Inc.

Post a Comment

We invite you to provide your input on each entry from Bob Greenwood. To foster a civil, focused discussion, comments will be moderated for tone, focus and relevancy.

To include your name, select "Name/URL" in the "Comment As" pull down box.