When it comes to the do-it-yourself automotive aftermarket, price sells product far better than anything else, according to results of the latest Aftermarket Business World Reseller Product Study.
Some 56 percent of resellers responding to the study said price was the most important need of their DIY customers. When asked the most important need of their professional customers, 43 percent of the same group of resellers said quality topped the list.
Among professional customers, price came in second at 21 percent, followed closely by availability at 19 percent, while OEM form fit and function was in fourth place at 9 percent.
|Aftermarket Business News on Youtube|
You read the articles, now get more from Aftermarket Business News by subscribing to our Youtube page.
Among DIY customers, availability was the second most pressing need at 15 percent, and quality was in third place with 13 percent, resellers surveyed said.
More than half (53 percent) of respondents said their product sales increased in 2015 compared to 2014, while 42 percent said their sales were the same.
Resellers surveyed were optimistic in their outlook at 2016 as 58 percent said they expect their product sales to increase, while 40 percent said sales would be the same. Of the 58 percent who expect an increase in sales, 25 percent said the increase would be 1 percent to 5 percent and 16 percent said the increase would be 6 percent to 10 percent.
While 58 percent of resellers said they expect to sell more products in 2016, only 50 percent of the same respondents said they expect their gross margins to improve in 2016. Some 47 percent said their gross margins will stay the same in 2016.
More than half of resellers responding (54 percent) said the majority of their inventory is national brand products, while 49 percent said their inventory is evenly split between national brand and private label products. Click here to see the study.
Methodology: The Reseller Product Study was fielded to readers of Aftermarket Business World via email. Survey results are intended to show general market trends, not statistical certainties.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.