CrossCheck Blog

It's not too late for consumers and auto aftermarket dealers to make the most of Fall Care Care Month by the Car Care Council. The campaign aims to increase auto aftermarket sales by creating promotional opportunities in April (National Car Care Month) and October. Funded and directed by the Auto Care Association, the non-profit's online "Industry Tool Box" provides resources, examples and pre-written messaging to help the auto aftermarket industry reach new customers and reinforce brand loyalty among existing ones. "Fall Car Care Month in October is the ideal time to give your car some extra attention before harsh winter weather sets in," said Rich White, executive director of the Car Care Council. "Taking a little time for auto care now can help you avoid the headaches of a costly emergency breakdown later."

A February 2016 Google study entitled “Vehicle Tires & Tires Parts” states that mobile queries for vehicle tires and tire parts grew by 42% in the fourth quarter of 2015. Meanwhile, desktop and tablet searches in the same category declined by 1% each. The 11-page update shows little change in desktop and tablet activity since May 2013, but a steady rise in mobile use over the same period.

It is often said that "success is gauged by the company you keep" and the same can be said of auto aftermarket retailers in a global economy where stiff competition encourages mutually beneficial relationships with auto dealerships. The spotlight shines on three outstanding auto aftermarket retailers that specialize in servicing one make of vehicle. This exclusive commitment adds a degree of separation between them and parts houses targeting dozens if not hundreds of auto types. It also creates sensational opportunities for them to partner with like-minded dealerships and vice versa. The whole is certainly greater than the sum of the parts as these cooperative marketing efforts attract a broader consumer base to increase sales.

Helping service managers discover payment solutions for their auto dealerships is one of the most rewarding parts of my job. If I can address a dozen or so in one place, then I’ve increased the odds of finding personal satisfaction that many times. A recent meeting of the San Diego GM Retail Service Manager’s Club, a division of the New Car Dealers Association San Diego County, offered such an opportunity. A longtime proponent of trade associations, I wrote an article called "Ten Reasons to Join an Association" in 2012, explaining the numerous benefits (see inset).

There’s a need — almost a demand — in today’s global economy for blue- and white-collar workers to remain competitive by reinventing themselves one or more times during the course of their careers. For example, marketing communications practitioners must be skilled in writing, computer and mobile apps, web design, social media, e-commerce and graphic design to keep up with the winds of change. College programs cover the basics, but individuals are obligated to continue their education long after the graduation ceremony. Employees and employers in other industries, and even the mega industries themselves, are similarly challenged. Auto mechanics must study the sophisticated on-board technologies loaded into late-model vehicles; flooring companies need to stay on top of a growing selection of tile, carpet, laminate and wood products; and the tech industry is driven 24/7 to remain relevant.

Charles Darwin didn’t anticipate this, but marketers have been assimilating his theory of natural selection into their strategies since the middle of the 20th century. Thus, the "survival of the fittest" among species may be applied to the marketing of auto parts where competitors large and small are jockeying for position and developing new methods of increasing sales. Brick-and-mortar stores in particular are feeling the pinch as they witness consolidation among some of the largest players in the field. Nevertheless, a window of opportunity exists, providing potential optimism for any parts dealer willing to make the effort in finding a viable niché.

Negotiations for the Trans-Pacific Partnership have concluded and the U.S., Japan, Australia, Vietnam and eight other Pacific Rim nations -- not including China -- have agreed to lower trade barriers. President Obama has a long battle ahead to get Congress to ratify it, and that may not be easy, especially since both of the next election's extremes -- Donald Trump and Bernie Sanders -- think it's a horrible idea.

According to the Automotive Aftermarket Suppliers Association, the vast majority of auto aftermarket business owners and managers fill ninety-five percent of their orders from stock, and keeping that fill rate as high as possible requires two things: first, demand for what you’ve got, and second, the means to close every sale. Demand Should Stay Strong Reading the headlines these days may make you fear that demand will slack off again. China’s economic slowdown has everyone worried, and our stock market keeps getting hammered.

It’s true that over the past twenty years OEMs have increased the number of parts per car by more than half, topping out today at ten thousand and opening considerable opportunities for auto repair shop owners and managers. It’s also true that people invest more in their older cars than they used to, creating an entirely different set of opportunities for auto aftermarket owners and managers. But the single most important thing successful aftermarket businesses might consider today is this: people still love giant paper maps.

After seeing nationwide sales increase by nearly a billion dollars last year the auto aftermarket stands to see another billion-dollar increase this year, according to research by Hedges & Company, which will make it a $6 billion dollar industry.