The literal sales call has yet to be replaced by newer, more technologically savvy sales methods, and is a main factor in keeping profits and business alive among program group sales teams.
A recent Automotive Aftermarket Suppliers Association (AASA) report highlighted the changing landscape of aftermarket sales forces— but their methods for making sales among the program group sector has not changed with the times. Product knowledge and availability are key to WD, jobber, retailer and other channel partner relationships with sales representatives, especially when purchasing hard parts, which accounted for seven of the 10 product categories surveyed.
The notion that a phone conversation was the preferred method of making parts purchases was a popular one, with 91 percent of respondents across all categories combined showing this as the top choice. Almost half of respondents also reported that the Internet is not a main sales driver — 49 percent of respondents across all categories report no online sales.
The following research reflects the first-ever Program Group Product Study conducted by Aftermarket Business to gauge what the groups included in our annual Program Distribution Report Listing (see pg. 4) and their members have seen throughout 2009 and what they are expecting in 2010.
Sales have seen an increase of 1 to 3 percent compared to the previous year, and are most commonly attributed to seasonal change and the availability of better-quality products. Those who reported 2009 sales decreases named less do-it-for-me market demand and higher prices as the strongest contributing factors.
Going into 2010, sales are expected to either increase slightly — between 1 and 7 percent — or hold steady compared to last year’s numbers. Gross margin expectations mirrored those of sales, with 47 percent of respondents expecting margins to hold steady, while almost one-third hoped to see increases between 1 and 10 percent, according to the survey results.
METHODOLOGY: The Aftermarket Business Program Group Product Study was fielded to the management teams of those program groups that are listed in our annual Program Distribution Report, included in this issue. The survey was also sent to program group-affiliated warehouse distributor and jobber members. Survey results should be viewed as general market trend indicators.
Go to the Program Group Product Study
