With analysts predicting a rocky year for the heavy-duty aftermarket and the general economy showing signs of a possible recession, your first instinct might be to cut your marketing budget and concentrate on core products and services. But doing so could mean giving up market share and setting back your business for years to come. Industry experts cite several reasons why taking the opposite approach makes more sense.
Increased competition is the main factor. A panel of analysts at the Heavy Duty Manufacturers Association’s annual Heavy Duty Dialogue in January predicted 2008 Class 8 sales of about 180,000 units, not much better than last year’s poor showing of 150,965. With truck sales down, OEM dealers are concentrating on parts and service business. Because they hold only a 41 percent share of the aftermarket, there’s room to grow, especially in the non-warranty field.
Many dealerships are going after a bigger chunk of the aftermarket with advertising campaigns, competitive pricing and added services. To stay in the game, you’ll need to do many of the same things. Customer prospecting and marketing to existing clients are more important than ever when businesses are looking to cut costs.
Your marketing success will likely hinge on whether you can offer customers convenience and ways to save money or time. Consider expanding the products you carry to include other items fleets and small repair shops need to conduct business. Adding service, locations or a body repair facility could help make you a one-stop shop. If you already operate a garage, think about investing in service vehicles that allow technicians to travel to a fleet’s location to perform scheduled maintenance and minor repairs. Because fleets and repair shops are reducing inventory and requiring just-in-time parts delivery, you might need to increase your warehouse space in order to provide parts when they’re needed.
Investing in technology and training is important, too. Without systems, programs and skilled employees comparable to those of dealer organizations, you could be left behind in the next few years.
Good times for the aftermarket will return. Warranties on the 284,008 Class 8 trucks sold in 2006 will begin expiring soon, and that should mean more business for independent parts and service providers. Those who improve their operations and offerings during the downturn will be in the best position to capitalize on future growth.
