Salespeople on the street more important than ever, notes AASA report - - Aftermarket Business - Wholesaler, retailer automotive parts

Salespeople on the street more important than ever, notes AASA report

Source: Aftermarket Business

The landscape of aftermarket sales forces has changed, but distributors still agree on what they look for in a good rep, according to a recent report by the Automotive Aftermarket Suppliers Association (AASA), which polled WDs, jobbers, retailers and other channel partners in the supply chain.

Product knowledge and availability are key to this relationship, according to the study, which concludes that a quality sales force continues to prevail on the minds of distributors. “What I was pleased to see and maybe somewhat surprised about is how important the sales resource continues to be,” says Steve Handschuh, president and COO of AASA.

Drawing on the years he spent at NAPA, Handschuh recalls a day when the group had its own dedicated sales force on the street.

“In its heyday, we had 1,200 factory reps dedicated only to NAPA,” he says. However, when WDs started cutting sales teams, these factory dedicated sales specialists became generalists, with something being lost in the transition, he notes.

Almost 80 percent of respondents said factory sales reps are at least as important as they were five years ago. “Distributors and jobbers still consider a sales organization as important to achieving their goals,” Handschuh says.

And independent sales reps continue to serve as a high priority from the viewpoint of respondents. “It speaks to the strength of the independent rep organizations that they can handle multiple lines and still be effective, at least in the minds of the customer,” he adds.

A majority of respondents report that both factory sales reps and manufacturer’s reps call on them, though Handschuh says that manufacturer’s reps have gained more clout throughout the industry due to the continuing cutback in manufacturer’s reps.

Now, more than ever, salespeople need to be expert not only in the features of the products they sell, but also in how they compare to competitors like off-shore suppliers and how their option is better than anything else available in the industry at the time of the sale, he adds.

The role of the salesperson is not as vital to retailers, where the purchasing decisions are made at the upper levels, Handschuh clarifies.

For an effective sales relationship among channel partners, the lines of communication should remain open, says Tom Rafferty, VP of Sales, Affinia Global Brake & Chassis Group.

“Effective communication is the key to successful relationships, and it needs to be a two-way street,” he says. “We regularly inform our channel partners with news about our coverage, quality, pricing, marketing, sales support, service levels and more. We also listen carefully to their recommendations for improving our Raybestos programs. Additionally, we offer many value-adds to our partners, and strongly encourage them to take advantage of everything we make available.”

More WDs report having an outside sales force than in other segments, which Handschuh says is not a unique situation. “It doesn’t surprise me at all that distributors would more have an outside sales organization than others in the business.” A sales rep has to earn the business with an independent jobber store; conversely, major retailers are already instructed on what to purchase, Handschuh points out.

Respondents answered resoundingly that quality, availability and product knowledge above such factors as price. Although Handschuh admits some of these results are merely “self reporting,” these things have always been important at the repair level, where customers want the parts for their vehicles typically on the same day they bring in their vehicles for repair.

“Today, they want everything available on an on-demand basis,” Handschuh says. “That has created a basis where at the store level, you had to have it, or you didn’t make the sale. If you don’t have it on the shelf, then you probably lost the sale.”

“Our salesforce is spending more time in the service bays than ever before,” says Rafferty. “Technicians are hungry for the product information, technical training, business-building promotions and marketing tools that our district sales managers deliver.”

Price becomes more of a factor when all other things are equal, Handschuh adds. “Price has become more important than it has been for many, many years.” At the shop level, price holds the same priority it always has. But at the retail level, price has become more important than it has in 15 years, Handschuh says.

Regarding price, Rafferty from Raybestos, says: “Price is one of many factors important to our partners in the course of doing business. In order to prosper, they must be able to price competitively in their marketplace while achieving acceptable margins.”

However, other factors are also a priority for the manufacturer’s channel partners. “We believe that full line coverage is just as critical to their success as price, and our first-to-market coverage strategy fills that need very well. As an example of the priority we place on coverage, almost 2,000 part numbers were added to our brake and chassis product lines this year. That represents more than 160,000 catalog listings. Over 8,000 of these listings cover 2010 model year applications. A high percentage of these additions are for the fast-growing foreign nameplate population.”

The research notes that the most effective driver of sales growth within a product category is product line coverage, with 81 percent indicating that this is either a “very effective” or the “most effective” driver. Drivers such as high service levels and the company’s own sales and marketing efforts follow closely behind.

When asked what drives manufacturer loyalty with price (quality and availability being equal), more than half of the participants agree on the four factors that motivate manufacturer loyalty: working with them as a partner (70 percent), being accessible and responsive (66 percent), a manufacturer who builds a strong relationship with a channel partner (62 percent) and is sales minded (51 percent).

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