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). 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." 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."
To download a complete copy of this year's Program Distribution Report and Directory, see the 2008 Report.
To view the 2007 Program Distribution Report, click here.
To view the 2006 Program Distribution Report, click here.
To view the 2005 Program Distribution Report, click here.
I expect a slow, steady improvement over the next several years.
39%
I expect 2010 to mimic 2009 in financial hardship and company closures.
32%
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