"A lot of companies are really feeling the effects of the lower truck sales. We aren't," says Ethan Wendle, president of DiamondBack. "Last year, we grew more than 60 percent, and the past couple years before that we were growing at more than 200 percent. So while it's slowing down, we're still seeing growth."
Bryan Baker, director of marketing for A.R.E., cites data that shows light pickup truck sales declined by 304,000 in 2006 and another 165,000 in 2007. With this, he notes that his company has seen a shift toward smaller cars, but not necessarily smaller trucks. But he adds that it would seem logical that mid- and small-size pickup trucks could make a comeback.
"The most popular mid-sized truck currently is the Toyota Tacoma, which has carved out a large piece of market share," Baker says. "As far as how are we preparing for this trend, we tend to tackle design and engineering projects by truck popularity, so we'll go where the market leads us on this one."
DiamondBack reports that in the late 1990s and early 2000s, family guys were buying trucks and trying to be "cool" instead of buying a minivan for family needs. But that market bought mostly covers for keeping items dry, and is decreasing as the decade continues. That means the focus for DiamondBack remains on the "true truck" guys.
"Primarily the niche market that DiamondBack targets is customers that really use their trucks like a truck," Wendle explains. "That core demographic of truck owners is where we're targeting. Even some of the fringes of the truck market, the homeowner guys, the city guys, that's where we're seeing a loss because they can't convince their wives that they need a truck at $4 a gallon."
Even that is changing true truck guys, as people who normally would haul items with multiple trucks are condensing into one vehicle.
That means focusing on customers and making sure they get exactly what they need is key in this market. Baker offers three reasons from A.R.E.'s warranty registration surveys as to why people purchase tonneau covers or truck caps: dry storage, styling and security. Focusing on these needs for the basic customer should help boost sales. Also, going to the Internet is a way to reach that target audience.
"A large percentage of research is being conducted online, resulting in less store traffic at our dealerships," Baker says. "Consumers are finding more and more innovative ways to communicate with each other over the Internet when making purchasing decisions."
DiamondBack educates consumers through its Web site, along with TV programs, such as "Fisher's ATV World," and the fleet market. "It's really about finding the small, niche groups that our product markets well to, and then educating that customer base," Wendle notes.
That product is a heavy-duty cover that can hold ATVs and other loads on top of the cover, as well as items under the cover. But the company also sells a standard edition, light-duty cover.
"We've seen an increase in the light-duty cover in the last year," Wendle states. "As far as pricing, it's more in line with the fiberglass cover or roll and lock cover, where the heavy duty is a couple hundred (dollars) more than the top price point."
But that price point is where DiamondBack stays ahead of a slowing truck market by reaching out to its niche. "Our real niche is that you've got a large part of the population that needs to use their trucks for more than just what a regular cover will allow," he says.
And teaming up with others also allows truck accessory companies to stay successful. A.R.E. and DiamondBack have an agreement in which DiamondBack covers are distributed through A.R.E.
"We are a good fit for DiamondBack because of the freight and handling advantages we can offer them," Baker explains. "DiamondBack is a nice complement to us because it is aimed at niches of the market that a fiberglass tonneau cover isn't always suited for. Examples include DiamondBack's ATV Solutions and Commercial/Fleet Solutions."
