Please click here to read ‘Where value lines are gaining market share,’ Part II of our industry report on the growing accepting and proliferation of value line and private label brands.
Looking ahead, industry stakeholders are mixed on how deep value lines will eventually permeate into the aftermarket and the market share they will achieve. Some see value lines and private label brands as the future status quo — all businesses will be expected to stock and support them to sustain sales volumes.
Additionally, with the operational costs of trucking continuing to rise, it’s unlikely interest in lower priced items will decrease. Proliferation may ultimately be driven on a location basis, with point-of-sale operators determining how to position and promote value lines to their customers.
Dabasinskas says in the aftermarket parts space, Southport can’t compete solely on its OE lines. Secondary price points are essential for dealers to be competitive.
“If we quote OE and the customer shrugs, we have to have a response for that,” he says.
O’Hanlon agrees. Today’s dealers are much more active in the aftermarket parts world than they were 10 to 15 years ago, and winning business in that space requires a wider selection of products and prices. Even if International dealers are competitive against independent distributors on first-fit premium brands, the aftermarket is much larger than that, he says. “The second and third owner has different expectations.”
Paccar Parts views the market similarly. “Today’s dealers support trucking businesses with multiple truck brands, model years and ownership cycles. TRP helps dealers serve that broad customer base with aftermarket parts solutions throughout the vehicle's lifecycle,” the company says.
Independent distributors acknowledge increased competition too. With more places to call and products to consider, customers have been incentivized to shop for the best price, quality and value that supports their bottom line.
That’s likely why 77% of dealer and independent aftermarket survey responders and 64% of manufacturers intend to add more value lines in the coming year.
“Once that unit is out of warranty, it’s a cost analysis for the customer,” says Cannon. “We have to sell what the customer wants.”
In Lake Charles, Kelley says he will continue stocking and selling the best quality parts for the best prices he can. If customers push for lower prices, he’ll evaluate if vendor changes need to be made.
“We have to keep looking and trying, at least be in the range, where the loyal customer will stay with us,” he says.
Nolan acknowledges that pressure too, and believes it is the responsibility of the industry, distributors and manufacturers alike, to push back against it when possible. Value lines may be essential to some aftermarket customers, but they shouldn’t define the industry.
“We all need to think about who are and who we want the market to understand us to be,” he says.
