AN AFTERMARKET DREAM

It’s Time To Raise Our Game Says Jim Mazza

With no obvious signs of significant growth in the economy for the foreseeable future, Jim Mazza, managing director of GROUPAUTO UK & Ireland Ltd (GROUPAUTO), continues to challenge the industry in the way that it responds to the conditions it is currently facing.

“Although it’s clear that the vehicle manufacturers are no longer content to sell cars and accept that they’ll lose the aftersales business to the independent aftermarket, but are intent on ensuring that they keep a large slice of the business for themselves, how is the independent sector responding?” Jim Mazza asks.

“It is sad to see that rather than galvanising the independents and stirring them into action, the threat seems to be dulling their wits!

“At a time when businesses should be keen to capitalise on every opportunity, we learn that in research carried out by a leading aftermarket trade magazine many factors are pointing workshops in the direction of the franchised dealer for parts that are freely available to the independent sector.

“Although this may not be a totally new phenomenon and the products weren’t the most everyday of items, it is at best foolish to suggest that a potential customer source their products from a competitor, but when that competitor is intent in putting you out of business, this attitude is simply suicidal.

“The independent sector has been built on its ability to source products to provide an alternative to the franchised dealer, so it seems almost inconceivable that when given the opportunity to find these parts, all of which were available to the independent, all ten of the factors contacted suggested that three of the four parts asked for were only available from a dealer.”

On top of these findings, independent research has revealed that it’s the quality of the part that is the most important factor for the independent workshop, with availability second and price third.

“In complete contrast to these findings,” continued Mazza, “and research from among motorists that show cost is not the main driver for them either, the market is obsessed by the price and has a ‘lemming-like’ attitude to drive prices to rock bottom.

“The combination of these two attitudes (an unwillingness to source alternatives and only going for the cheapest product) does nothing to help businesses when times are good, let alone when the market is as tough as it is. So alongside the call for the technical training we rightfully hear so much about, there is clearly the need for business training on the distribution side of the industry.

“Part of the ethos within GROUPAUTO is to help our members at every level of their business, whether that be with advice, networking opportunities or management training, which is why we have developed our G-School Business Management Training scheme.

“For the good of the industry and for the motorist, irrespective of whether an individual factor is a member of GROUPAUTO, another group or none, the independent sector needs to raise its game to be able survive in the current climate and to benefit when the economy improves.

“This requires suppliers and distributors to work together and follow sound business practice; to share information, develop management training and adopt sustainable pricing structures because despite the difficulties intrinsic to this relationship, both want to sell products into a strong and vibrant independent aftermarket.

“However, this aspiration will remain out of our reach if we give the business away to the franchised dealers or supply products without making any profit!”

For more information about any of the services offered by GROUPAUTO, please contact the head office on: 01274 654600 or visit: www.groupauto.co.uk

ENDS

For further information relating to this press material, please contact Steve Coombes on: 01753 785957 or e-mail: steve@chicanemarketing.co.uk

Chicane is an established PR agency with a particular specialism in the automotive aftermarket and the motorsport industry.
Prix De la Communication and Barrington Needham Trophy award winners

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