Hate to say 'I told you so...'

Jan. 1, 2020
The telephone rang just a few minutes ago in the middle of a busy weekday, in the middle of a traditionally brutal week, at least here.

The telephone rang just a few minutes ago in the middle of a busy weekday, in the middle of a traditionally brutal week, at least here.

It was the manager of a local dealership that will remain forever nameless. He called to let us know he would match any price on a comparable part of comparable manufacture supplied by the aftermarket: Period! Let me run that by you again. The dealership, home of traditionally captive parts and excessively skinny margins was offering the same deep discounts the aftermarket has traditionally offered the repair community!"

I told you this could happen. I told you it wouldn’t take much for them to offer the same parts at the same prices! I just never really believed they would actually do it. But, here they are with their first foray into enemy territory — your territory!

I should be overjoyed because this ‘new arrangement’ allows me to access the world of factory ‘fit and finish’ without the traditional penalty cost of the 20 or 25 percent discounts most dealerships still offer their wholesale accounts.

I should be overjoyed because there are plenty of times the local – or, not so local –dealership is the only place to find that elusive part you are trying desperately to find.

I should be overjoyed because there aren’t too many ‘civilians’ out there who would suggest the factory part you just installed on their vehicle was somehow “less” than the comparable aftermarket part designed to replace it.

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I should be overjoyed because the perception is the quality is going to be equal to or greater than; because the warranties are identical; and, because the price is now, or soon will be, the same!

I should be overjoyed, but I’m not. I’m concerned.

I am concerned for the same reasons I monitor my neighborhood for potential competitors. Not because I am afraid of the long-term consequence. If I am unable to retain my current clients while still attracting new customers despite the introduction of an additional choice, I’m not sure I deserve to remain here!

I am concerned because their nibbling is a distraction. And, even if that distraction is not going to be a factor in the long term, it can still dilute sales and erode margins in the short term.

I am concerned because I know entrepreneurs are competitive by nature: competitive and territorial. The general response to this kind of threat would be to compete and compete aggressively on price. But, I’m not sure that would be the correct response.

I haven’t taken the dealer up on this offer yet. But, that isn’t to say I won’t. In all honesty, I haven’t had the opportunity — yet.

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I will try to resist the temptation for a number of reasons. First, I am a child of the aftermarket. That is where my loyalty is and has always been. The aftermarket has fed and clothed me, provided me with education, satisfaction, opportunity and an adequate living for most of my adult life.

I trust the manufacturers I’ve grown up with. They have always been there for me. Well, just about always. So, it is safe to assume that luring me away will not be all that easy.

However, this call made it obvious that we are entering new and different terrain, a place where the battle for the backroom will never be the same. And, if that’s the case, whatever it is you have done in the past is no longer likely to be adequate for the future.

The question will then be, what do I need to do protect and prevail? What do I need to do to succeed?

The answer is relationships — strong, deep, intimate, personally fulfilling and mutually beneficial relationships. Build them and you will succeed. Ignore the opportunity to form them and you will surely fail. And, if you fail to search for and nurture these deep and personal relationships, I can assure you someone else will. And, that someone else may not be another aftermarket competitor. It just might be the dealer down the street from my shop.

And, then, all I could say was, “I told you so! Again.’

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