As an industry, we're all cognizant of the market conditions affecting our businesses. But when it comes to deciding which
programs will best tackle these situations, we're all just a little bit different. Many program groups have a specific approach
to determine which initiatives to implement – and which ones to leave on the table.
"Our approach when adding programs is to look at three issues: will it help the member compete better in the marketplace;
will it add some financial value to the member or group; and will the majority of the members support it? That's our criteria,"
says Dan Freeman, president of Automotive Parts Associates, Inc. (APA).
With members noting there is less traffic in the bays than ever before, successful programs are key to helping stores remain
competitive and reduce costs. A few years ago, APA developed a continuous form program with forms manufacturer Moore Wallace
that allowed APA members to buy computer forms like invoices at a cheaper rate.
"With that came a lot of residuals," explains Freeman. "For instance, a lot of our members need printing services for promotions,
and Moore Wallace has really good pricing. Many members have gotten prices to 50 percent of what they were before by using
Moore Wallace." Current market situations are also important considerations for Federated Auto Parts.
"I think one of the biggest challenges right now are the price increases tied to steel," says Phil Moore, vice president of
marketing for Federated. "It affects so many of the things we sell. Our challenge is how do we keep our customers' minds on
programs when they're more concerned about product availability and whether or not pricing is going to go through the roof."
He continues that it is important to convince Federated's 4,000 independent jobbers that it's still "business as usual."
"It's all about education on why items are costing more. We educate installers who in turn can educate the consumer," says
Moore.
Bill Burns, CEO of Independent Warehouse Distributors, LLC, says "the single biggest feature that we look for in any program
development is what will benefit the downstream customer and make our members better purchasers, better providers of programs
and product for their ultimate end customer."
The program group is focusing on the professional mechanic and repair shop because it represents the bulk of their business.
However, Burns notes there are new opportunities arising for IWD members.
"One of the biggest areas of opportunities we see and have been devoting our resources to in the last 10 to 12 months is the
area of national fleets," he states. "It's an arena that we have not previously chosen to play in, devoting most of our efforts
— marketing and otherwise — to the professional repair channel, both automotive and heavy duty. But having that and having
a national network of professional repair shops, we now believe we have a unique opportunity to go into the fleet marketplace
and not only offer quality goods, but quality service as well, which appears to be a rather unique offering that we as a program
group have."
Something for everyone
At Aftermarket Auto Parts Alliance, its determining factor for implementing any program is whether it's suitable for the entire
group.
"We design our programs so they appeal to everyone and are easy to implement, because if they're not we'll only get a small
percentage of our members to participate," explains Steve Marks, senior vice president of marketing/advertising with the Alliance.
However, the something-for-everyone approach highlighted in the Alliance's certified service center programs is an even greater
source for the group's success because the programs are organized in a menu format so individual shops can pick and choose
what will work best within their market and business plans.
