Buying incentives better than the shirt off your back

Jan. 1, 2020

Tools and equipment incentives build sales and loyalty with shop owners.

I recently spent some time reorganizing storage space and office cabinets and was amazed by how much "stuff" had accumulated in such a short period of time. This stuff includes pieces of marketing kits sent by manufacturers and suppliers, designed as incentives to buy a particular product and to promote brand recognition. These items can consist of footballs, T-shirts, gloves, stools, hats, radios, flashlights, signs, key rings — the list is endless. When my shop receives an item, it typically ends up being packed away. Eventually, it is rediscovered and most likely raffled off at a shop meeting.

I really don't think a hat or shirt is going to sway me to buy a particular brand, especially if I am happy with the product I currently use.

And if that product works to my expectations, I don't need a hat or shirt to keep my loyalty. It seems a lot of money is being spent on something that might be only mildly effective for customer retention.

Some of the buying incentives I do like are discounts from my suppliers. These discounts are based on the amount of product purchased in a given time frame. Some suppliers offer discounts for purchases made through online catalogs. These incentives usually are credited directly on the parts statement at the end of the month or accumulated to be used for co-op advertising.

Now, dollars or points converted to dollars based on purchase amounts are being applied to credit cards, which is another neat incentive. Discounts from a supplier will motivate me to purchase from that supplier, but they do not make me loyal to a line of product unless it is the only line offered.

My oil and lube supplier offers an equipment package based on the volume of product sold. This package offers the use of its dispensing equipment as long as I purchase its product. This has helped reduce my overhead and maintenance costs considerably.

Something I would like to see more often is equipment purchase incentives. One example I have used in the past is an earn-back program involving a quality strut compressor. By purchasing the complete strut package, including the strut compressor, I would get the tool for next to nothing. This program gave me the incentive to buy a particular brand, as well as a way to make more money. This also has been used by battery suppliers — purchase X amount of batteries and receive a battery/charging system analyzer with the package. This sells more batteries and adds additional sales of alternators and starters. It ultimately puts more money in everybody's pocket.

Offering tools and equipment incentives with a product line is the perfect way to build sales, build loyalty and entice shop owners to try your products.

Chuck Hartogh is vice president and co-founder of C&M Auto Service Inc. of Glenview, Ill., and Vernon Hills, Ill., and is an ASE-Certified Master, L1 Technician. (ASA).