When you buy better, you sell better, but sometimes you need an extra set of hands-or checkbooks-to get good buying done. Power Heavy Duty brings independent distributors and service specialists together to create a more formidable purchasing power, enabling these companies to stay independent and competitive in the truck parts aftermarket.
To vie for marketshare, independent warehouse distributors (WDs) not only compete against one another, but also have to fight on two additional fronts: Warding off competition from roll-up groups and truck dealers.
In the mid 80s, marketing or buying groups formed to help independents gain equivalency with the big guys by allowing them to align themselves with a group in order to qualify for bulk purchasing rebates.
Power Heavy Duty was formed in 1994 by its president, Brett Upton. The organization is part of Elite Automotive Marketing, a roll-up group comprised of TruStar, an undercar two-step group; Eagle Nation, a group of traditional three-step automotive warehouses; and Axxis, a group for tool and equipment distributors. The organization is a family affair.
“My brother Steve Upton runs TruStar,” said Upton. “My cousin Kevin Medlin and I run Eagle Nation, Axxis and Power Heavy Duty.” Upton leveraged his experience in the automotive aftermarket to gain insight into the heavy-duty aftermarket and the potential for group buying.
“Basically, we help the distributor buy better. If he is buying, say, Triangle or Dayton parts or Baldwin filters, he’s buying on the WD program. But if he joins a group, he buys on the group program, which usually is based on the group’s annual volume,” said Upton.
“While an individual distributor might do $100,000 a year with a certain manufacturer, we probably do $10 million in business with them as a group, so the distributor receives rebates on the entire group volume or group growth-whatever we can do to help someone buy better.”
Power Heavy Duty, with 200 members, is the smallest of the four major marketing groups serving the heavy-duty aftermarket. But its smaller size does not translate into diminished support for its members.
Nathan Holecek, president, Truckmotive LLC, Waco, Texas, said that Power Heavy Duty’s focus on small independents drew him to the organization. “We sought out Power Heavy Duty because we thought they were a good fit for us; we’re small, hands-on guys,” he said. “We’re small, but we operate pretty big with the help of Power Heavy Duty.”
“Our thing is support, support, support,” said Upton. And by all accounts, Power Heavy Duty lends support to its members, manufacturers and to the industry itself.
In addition to the increased buying power, which is Power Heavy Duty’s main service to its members, it is a champion of small independents and has a particular affinity for spring shops.
“Within the group, we have a good percentage of distributors who are spring shops. We have a close relationship with the Service Specialists Association. We are almost two groups in one because we help the spring shop service center guy and we also help the guy who just sells truck parts,” Upton said.
Power Heavy Duty also offers its members services like territory protection and central billing, which allows a member to buy directly from a supplier while remaining eligible for group rebates.
Territory protection assures existing members that the group will not grant membership to one of their area competitors. “Say we have a member in the Houston area who does a great job supporting the marketing programs, attending meetings, buying lines that support the group and buying private brand lines. It’s not fair to sign up his Houston competitor so we can help his competitor buy better too,” said Upton.
Power Heavy Duty also has developed its own trademarked branding system. “Power Heavy Duty is a registered trademark,” said Upton. “We have various promotions with our members and we have our own private brand lines that enable us to meet competitive situations in the field.”
Holecek benefits from Power Heavy Duty private brand lines. “It’s hard for guys like us to set ourselves apart when you have one or two locations, but private labeling helps you stick in people’s minds,” he said.
Although they offer private labels, Power Heavy Duty places a lot of importance on supporting manufacturers who show loyalty to the group. “It’s key for us to keep supporting the manufacturers that have been in our group for years. We don’t just add new manufacturers every time they come knocking on the door since we have a pretty well-rounded base of manufacturers covering every category in the truck parts business,” said Upton.
The group also backs manufacturers by encouraging its members to use manufacturer training programs and to participate in their promotional programs. In turn, members can rest assured that the group has done the appropriate legwork by researching and carefully considering all manufacturers it stands behind.
In addition to supporting its members and participating manufacturers, Power Heavy Duty takes steps whenever possible to bolster the industry. The group has a 12-person board of advisors, of which Holecek is a member, and holds an annual meeting in conjunction with Heavy Duty Aftermarket Week, during which there are plenty of networking opportunities for members.
“At these meetings, Power Heavy Duty puts you in touch with people you’d never get the chance to talk to,” said Holecek. He also cited the importance of camaraderie between group members. “It’s valuable to meet other business owners who are in similar situations. You can pick up the phone and bounce ideas off them,” Holecek said.
Power Heavy Duty also gives back to the industry through a scholarship program it supports at Northwood University. “We’re trying to give back to the industry,” said Upton. “If we can donate a little money and give someone a scholarship, he or she will focus on the industry and become a part of it, whether as a technician or a salesperson or in another facet.”
Upton recognized the importance of establishing purchasing support structures for the independent distributor and repair shop so that these business owners can continue to be a thriving part of the aftermarket. But in order for these businesses to remain relevant, he also understands that small independents must support participating manufacturers as well as the industry as a whole. If no one works together, everyone, small and large, will suffer.
