The Most Trusted Resource for Light Truck and SUV Aftermarket Accessories




NEW INDUSTRY PRODUCTS

SUBSCRIBE

eNewsletter
Subscribe to Trucking Times Aftermarket Update

P.R.I.D.E. MANUAL

EVENTS

ADVERTISE

EDITORIAL GUIDELINES

LINKS

ABOUT US

CONTACT US

HOME

Feature Article

Too Many Plain Trucks
Sales Growth In Truck And SUV Accessories Is Good — But Shouldn’t It Be Better?

By Tom Balek

The demand for light trucks and SUVs seems insatiable. Despite higher gas prices, pressure from environmentalists, and sticker shock, more and more Americans are trading in their nice, practical cars for more size, versatility, and excitement. And after shelling out the big bucks for that new truck or SUV, many drivers don’t hesitate to drop a few grand on accessories to protect their investments and to make a personal statement. Good news for us accessories guys, right? Let’s party!

Well, maybe not quite yet. Even as light trucks and SUVs gobble up automotive market share, accessories sales are not consistently keeping pace. Manufacturers ponder how to reach and inform more consumers and get new products off the ground. Accessories dealers wonder why there are still so many "plain" trucks on the street. And while some consumers (especially the younger set) come to retailers with considerable product knowledge gleaned from Web sites and magazines, many truck and SUV owners just don’t have a clue about what we have to offer.

Actually, this should come as no surprise. In the life cycle of any product, first comes demand; then comes supply; only later comes inspired marketing effort to create even more demand for the new supply.

More marketing usually translates to more money — and that leaves us all looking at each other like the boys at the 19th hole when the bar tab hits the table. Who should take the financial risk of promoting a new product? The manufacturer? The retailer? What about the warehouse distributor?

Manufacturers feel they are already spending plenty, with mixed results, even as they are pressured to hold down retail prices in the face of rising material and labor costs. And unlike the "big box" retailers who dominate other product groups, most dealers in our relatively young industry are small independents. They certainly don’t have the deep pockets or the expertise needed to reach and convert the masses. Nor are the distributors very willing or able to lead the marketing charge.

But let’s face it, we are all in the same ocean, and a rising tide floats all boats. We should examine what each segment of our industry — manufacturers, distributors, and retailers — can contribute to the team in our battle for consumer awareness and disposable dollars.

Manufacturers

It’s evident that the real marketing impetus must start here. The manufacturers know most about the features and benefits of their products. As a group, they also have the deeper pockets — and the most at stake, having already invested in research and development, tooling, and other production costs. Of the three segments, manufacturers are most able to employ professional marketing staff and implement large-scale media advertising programs. And what a bewildering array of ad opportunities they face! How does one ration funds between electronic and print media ads, trade shows, vehicle sponsorships, P-O-P, samples and demos — even those hip, new "gearhead" TV shows (don’t you have a checkerboard floor and a dynamometer in your garage?). Each manufacturing company has its own formula and rationale for distributing marketing dollars, and some are more effective than others.

But while the big guys can obviously put the message out there, they can only hope it is effectively received by the consumers they covet. They know that many truck and SUV drivers don’t watch the "gearhead" programs, or buy the specialty magazines, or attend the automotive shows. Many are not "wired" to the Internet, or just don’t know what to look for, or where to look. This elusive quarry can only be snared at the local, face-to-face level — a place inaccessible to large, national marketers.

"Our marketing strategy for the last few years has been to provide as much direct support to retailers as we can," says Kelly Kneifl, business unit manager for Truxedo. "We spend a ton of money on point-of-purchase and demo units, but we know that really helps the consumer understand the advantages of our product."

Distributors

Most retail accessory dealers are not large enough to buy products direct from manufacturers. A few large national warehouse distributors and many smaller regional ones serve to bridge the gap between the producers and the sellers. By definition, these companies exist to "distribute." They are focused on receiving, stocking, and shipping products in large volumes and with a minimum of overhead. Only the very largest distributors have any consumer-oriented marketing capability, and even those programs are channeled through their dealers. This is logical, since retailers don’t want consumers buying direct from their suppliers.

"We don’t want the consumer to know us," says Bob Calizon, senior sales associate for Keystone Automotive, a major national distributor. "Our approach is to help our dealers market to consumers by providing promotional materials, such as retail sale flyers and calendars, at an affordable cost. But we have to be careful not to over-saturate a market where we have multiple dealers competing against each other."

Like Keystone, Reliable Automotive offers retailers online marketing and selling tools. These programs are still relatively new and have not had a big impact to date.

Regional warehouse distributors typically don’t participate much in the consumer marketing process. J.L. Henderson of Johnson Distributing in Montana regrets that many manufacturers expect his company to market their products, yet don’t provide the material, training, or financial support to make it happen.

"Our dealers want us to keep prices low, and that doesn’t allow us to have marketing personnel or to purchase as many marketing materials from manufacturers as we would like," said Henderson. He contends that companies who provide free point-of- purchase displays and other materials will always have a market advantage over those who don’t.

Retailers

The buck starts here. If the retail accessories dealer doesn’t sell the product, the distributor and manufacturer go hungry, too. But as noted earlier, most retailers are small businesses, often without the budget or expertise to mount an effective marketing program.

Our industry will reach its potential sooner if manufacturers will work more directly with accessories dealers to implement marketing strategies at the local level.

Local print and electronic media advertising is essential to generate interest, awareness, and confidence in our products. To be effective, dealers need ad co-op funding and media support, such as pre-produced ads and materials. Logistical help and support for local events can also help reach consumers. Administration of these programs should be handled by the manufacturers, rather than delegated to disinterested or untrained distributors.

Point-of-purchase materials, including counter cards, displays, brochures, and demonstrators are the retailer’s best weapons for "closing the deal." In my store, products with strong point-of-purchase displays and those installed and demonstrated on company vehicles move briskly. Manufacturers should be prepared to invest in these vital tools, as it is unrealistic to expect smaller retailers to take the initiative.

There is no substitute for product knowledge, and currently dealers are largely left to their own devices with regard to learning features, market advantages, options, installation, and other product details. Support and information via Web site and phone are essential, but manufacturers can accomplish even more with rep visits to stores and meeting opportunities at trade shows and production facilities.

These strategies have been proven effective in many other industries and in some segments of our own. Inevitably, as our industry matures, retail accessories companies will consolidate and grow, and so will their independent marketing capabilities. But for now, manufacturers should expect to set the agenda.

Higher costs are not a foregone conclusion, although marketing gurus will usually promise a high rate of return on skillfully invested promotional funds. A shift in spending from some less-effective programs may yield the desired results. And manufacturers need to "qualify" retailers to avoid wasting precious resources — this is an area where distributors can help.

Sales growth in our industry is good. With some adjustments in marketing strategy, it will be even better. And then, when there are no more "plain"








Click here to view
product information.

We proudly support
these organizations:
Trucking Times Work, Play & SUV is a magazine edited for businesses that sell, install, restyle, restore, customize or do anything with aftermarket accessories for light trucks, vans, and sport utility vehicles.
Subscribe   eNewsletter   New Industry Products   Events
Advertise   Editorial Guidelines   Links   About Us   Contact Us   Home
6160 S. Syracuse, Ste 300
Greenwood Village, CO 80111
© 1999 - 2010 WiesnerMedia, LLC