consumer attitude study
Transcription
consumer attitude study
www.aftermarketbusiness.com 22 October 2015 Talk shop anytime Vol. 124, No. 2 The leading source for market trends & analysis ADVERTISEMENT Innova Fleet Management System Developed by parts people for parts people, the new Innova Fleet Management System has all of the features of a traditional fleet management system, but takes it one step further. By alerting both the fleet manager and the auto parts store of vehicle service needs, this one-of-a-kind system provides the parts store with an exceptional opportunity to proactively reach out to the fleet customer and capture the parts sale. Innova | www.fleet.innova.com | AAPEX Booth 4856 Blue Streak Performance Radiator Fan Motors by Hayden Blue Streak Performance™ Radiator Fan Motors by Hayden® offer the latest technology in performance engine cooling. These drop-in O.E. replacements utilize the O.E. blade, shroud and O.E. style connectors without the investment of expensive radiators or modifications. Plug and play installation typically takes less than 30 minutes. Upgrade the cooling system and save money, while protecting the engine. Hayden Automotive | www.haydenauto.com | AAPEX Booth 4226 Raybestos Element3 Disc Brake Pads Offer The Ultimate in Braking Control Raybestos® Element3® with Enhanced Hybrid Technology (EHT®) combines the best attributes of ceramic and semi-metallic all in one disc brake pad. This innovative engineering breakthrough ensures optimal performance, improves pad wear and durability, and delivers unsurpassed stopping power and vehicle control, even under the most aggressive braking conditions. Raybestos | www.RelyOnRaybestos.com AAPEX Booth 3644 Raybestos Offers Full Coverage Brake Shoe Program The Raybestos® brake shoe program provides full coverage and application specific formulas designed and tested to work with the front disc for a well-balanced braking package. Engineered for proper fit, form and function to match original equipment, the shoes provide quiet operation, use all copper free materials and include attached levers and pins where applicable. Raybestos | www.RelyOnRaybestos.com AAPEX Booth 3644 www.aftermarketbusiness.com ‘Roll Formed’ Hub Assemblies Wheel Hubs, Bearings and Seals Catalog WJB Automotive offers a line of “Roll Formed” Hub Assemblies, using a state of the art facility and a complete automated robot manufacturing process, which represents an engineering breakthrough. These improved designs ensure precise bearing preloads, which decrease the possibility of ball corruptions from excess torques; prevent ball bearings from crushing, which provide longer life on the vehicles. For more information on benefits of this product line offer to your business, please visit or contact WJB Automotive. WJB Automotive’s print edition of 2015 Wheel Hubs, Bearings and Seals Catalog has been published, which covers domestic and import vehicles from A to V, from model year 2015 to 1969. This catalog features a complete range of Wheel Hub Assemblies, Wheel Hub Spindles, Wheel Bearings, Wheel Seals, and Bearing Kits, which will be served and distributed to both the United States and Mexican markets. WJB Automotive | www.wjbgroup.com AAPEX Booth 1671 WJB Automotive | www.wjbgroup.com AAPEX Booth 1671 Introducing the Davico SLEDGEHAMMER 2-Step Induction Kit Arnott Air Suspension Products introduces new, not remanufactured, aftermarket Front Air Struts for the 2003 to 2006 Mercedes-Benz S-Class (W220 Chassis) with AIRMATIC and with 4MATIC. The Arnott-designed struts fill a market gap for customers who previously had to purchase either costprohibitive OE struts, or remanufactured OE cores which are difficult to find and have an unknown number of miles on them. Arnott Part Numbers are AS-2783 and AS-2784, and they retail for $576.66 each. A specially designed solution to excess carbon & soot problems by Davico Manufacturing and Run-Rite Car Care Maintenance Products. Attack carbon and soot and reduce Catalyst efficiency returns from your customers. Excess carbon and soot not only effects Catalyst Efficiency, it also negatively effects vehicle performance and fuel economy. This easy to use 2-Step kit requires no special tools and the service is typically performed in less than 15 minutes. Arnott | www.arnottindustries.com AAPEX Booth 4068 Davico Mfg. | www.davicomfg.com AAPEX Booth 125 Arnott Introduces New Front Air Struts for ‘03-’06 Mercedes-Benz S-Class 22 www.aftermarketbusiness.com October 2015 Talk shop anytime Vol. 124, No. 2 The leading source for market trends & analysis AAPEX AIMS TO HELP BUSINESSES GET IN FRONT OF CHANGE COMMUNIT Y PRODUCTS AUTOMAKER DEALS ON THE HORIZON? FALL PRODUCT REVIEW OEM partnerships could simplify life in service bay Some of the latest tools and resources TRENDING NEXT-LEVEL NETWORK Scan here for your direct link to New IT systems help Arch Auto Parts be more responsive AftermarketBusiness.com RESEARCH CONSUMER ATTITUDE STUDY Lowest price doesn’t always win among shoppers SHOW SEASON IS HERE Follow AMB World on Twitter, Facebook for the latest news You pride yourself on being his first call, every time. You are just as fluent as he is in U.S., Japanese and European. You are his Johnny-on-the-spot, get it right the first time, every time, right hand man. You know his reputation has a direct impact on yours. You only carry parts that live up to the highest standards. Yours. We can’t think of a tougher audience than you and your customers. That’s why the Elite® by Continental aftermarket series exceeds industry specifications – and your expectations. You demand proven results with no exception. And that includes coverage on all makes and models. That’s exactly what you’ll get with Elite. From our revolutionary Poly-V® with Quiet Channel Technology™ to timing belts and hoses that offer a perfect OE match, and everything in between, Elite is a true standout in aftermarket performance. Just like you. B e l t s • Te n s i o n e rs • B e l t Ki t s • H os e • Ac c e s s o r i e s . Continental-elite.com Visit us at the Sands Expo Center at AAPEX. Booth 2633 October 2015 Vol.124, No. 2 Talk shop anytime Aftermarket Business World EDITORIAL STAFF Group Content Director Mike Willins [email protected] (440) 891-2604 COMMUNITY 10 Automaker deals on the horizon? Read It On AftermarketBusiness.com OEM partnerships could simplify like in the service bay. & PLUS 12 AUTOMOTIVE DISTRIBUTION CARTHE NETWORK TO EXPAND PARTS PLUS CARE CENTER PROGRAM TO BEST OF THE BLOGS MEXICO, PUERTO RICO TOP VIDEOS [KEY: /Network] CALENDAR CAPITAL PARTNERS ITSZSELLS MSDP GROUP AND SUBSIDIARIES TO HOLLEY Sounds like a wrong number PERFORMANCE PRODUCTS Parts professionals need intuitive phone skills when dealing with confused, distracted customers. 14 24950 Country Club Blvd., Suite 200 North Olmsted, OH 44070 Fax: (440) 891-2675 www.aftermarketbusiness.com [KEY: /Z Capital] AFTERMARKET AUTO PARTS FOCUSES ALLIANCE SALES FORUM ON A CHANGING Underground storage tanks in focus AFTERMARKET EPA eases up on proposed mandates resulting in lower underground storage tank costs than expected. [KEY: /Alliance] ONLINE VIDEO KNOW-HOW AftermarketBusiness.com/video15 Upcoming Webinars and Archives Columnists Automotive Aftermarket Suppliers Association/OAC [email protected] Stephen Barlas [email protected] Bob Moore [email protected] Donny Seyfer [email protected] Mark Smith [email protected] News Correspondent James E. Guyette [email protected] Contributors Brian Albright [email protected] Andy Adams [email protected] Senior Designer Stalin Annadurai Band Manager James Hwang [email protected] (714) 513-8473 SUBSCRIPTION CHANGES/ CUSTOMER SERVICE (888) 527-7008 (218) 740-6395 Check out our technical, service and business webinars. SearchAutoParts.com/webinars WATCH THE VIDEO ON YOUR MOBILE PHONE! Aftermarket Business World videos AftermarketBusiness.com/IT Technical Editor Peter F. Meier [email protected] (813) 909-3803 Art Director Steph Benz ONLINE COVERAGE Get weekly updates about the latest aftermarket technology information. Managing Editor Bruce Adams [email protected] (440) 891-2617 Brian Littlefield of UPS discusses how the e-commerce channel affects the structure of the supply chain. AftermarketBusiness.com/Video15 BUSINESS STAFF Vice President General Manager Jim Savas Group Publisher Terri McMenamin [email protected] (610) 397-1667 Business Manager Nancy Grammatico Sales Coordinator Jillene Williams Sr. Production Manager Karen Lenzen (218) 740-6371 Circulation Director Anne Brugman Transmission focused technical content at your fingertips. MotorAge.com/PowerTrainPro FOLLOW US! 2 OCTOBER 2015 Circulation Manager Tracy White (218) 740-6540 THE VALUE OF 3PL FINAL LINK IN SUPPLY CHAIN AftermarketBusiness. com/Video16 AftermarketBusiness. com/Video11 Check out breaking news, updates with social media. Twitter: @Aftermarket_Biz, @Motor_Age, @Frost_Sullivan Facebook: Aftermarket Business World Workshop: badams, Peter-Meier, Donny Seyer and more AftermarketBusiness.com Marketing Director Boris Chernin [email protected] (310) 857-7632 Best new product for SEMA 2015. Come check it out. See you there. November 3-6 North Hall (Westgate) Las Vegas Convention Center Registration www.quickjack.com ! c. We’ll be here. Not subscribed to AftermarketBusinessWorld digital? Sign up FREE TODAY for: ➤ international market insight ➤ more from favorite columnists ➤ technology updates ➤ industry research TRENDING © Advanstar Communications Inc. 2015 Printed in U.S.A. SUBMISSIONS: AftermarketBusiness welcomes unsolicited articles manuscripts, photographs, illustrations and other materials but cannot be held responsible for their safekeeping or return. MEMBER OF: AAPEX AIMS TO HELP BUSINESSES GET IN FRONT OF CHANGE UBM ADVANSTAR: Chief Executive Officer Joe Loggia Executive Vice-President, Life Sciences Tom Ehardt Executive Vice-President Georgiann DeCenzo Executive Vice-President Chris DeMoulin Executive Vice-President, Business Systems Rebecca Evangelou Executive Vice-President, Human Resources Julie Molleston Executive Vice-President, Strategy & Business Development Mike Alic Sr Vice-President Tracy Harris Vice-President, General Manager Pharm/ Science Group Dave Esola Vice-President, Legal Michael Bernstein Vice-President, Media Operations Francis Heid Vice-President, Treasurer & Controller Adele Hartwick UBM AMERICAS: Chief Operating Offi cer Brian Field Chief Financial Offi cer Margaret Kohler UBM PLC: Chief Executive Officer Tim Cobbold Group Operations Director Andrew Crow Chief Financial Offi cer Robert Gray Chairman Dame Helen Alexander 18 COMMERCE CENTER DEALERSHIPS AFTERMARKET ANALYSIS AUTO SALES GOING DIGITAL BY MARTY MILLER | EXPERIAN AUTOMOTIVE opportunity in the 22Finding aftermarket sweet spot. BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR dealers and OEMs will increasingly 30Auto turn to digital car showrooms to reduce costs and increase sales. INTERNATIONAL TECHNOLOGY EXPLORING OEM PARTNERSHIPS NEXT-LEVEL NETWORK BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR BY JAMES E. GUYETTE | NEWS CORRESPONDENT takes a new route with partners 24Honda in its technological quest. Read It On IT systems help Arch Auto Parts be 32New more responsive during emergency AftermarketBusiness.com AUTOMECHANIKA SHANGHAI BBB INDUSTRIES NAMES BOARD AP EXHAUST ACQUIRES SECTORS GROWING WITH NEW, MEMBER JOE BERETTA AS NEW EXHAUST EASTERN CATALYTIC TO FORM ENLARGED EXHIBITORS CHIEF EXECUTIVE OFFICER AND EMISSION SUPPLIER COMPANY [KEY: /AP Exhaust] [KEY: /Shanghai] [KEY: /BBB Industries] S E A R C H AU TO PA R T S .C O M 5 Looking for new equipment? Check out our website for offerings from top companies. SPECIALTY PARTS UPKEEP/MAINTENANCE SHOP EQUIPMENT SHOP MATERIALS PAINT & REFINISH REPLACEMENT PARTS VEHICLE STYLING BUSINESS SYSTEMS ORGANIZATIONS/ ASSOCIATIONS OFF-ROAD …AND MUCH MORE RESEARCH 34 CONSUMER ATTITUDE STUDY SALES STAFF Midwest & Western States Michael Parra, Regional Sales Manager Tel: (704) 919-1931 [email protected] Illinois, Eastern & Southern States Paul A. Ropski, Regional Sales Manager Tel: (312) 566-9885 Fax: (312) 566-9884 [email protected] Ohio, Michigan & California Lisa Mend, Regional Sales Manager Tel: (773) 866-1514 Fax: (773) 866-1314 [email protected] Inside Sales/Classified Sales/ Recruitment Keith Havemann, Sales Representative Tel: (310) 857-7634 Fax: (310) 943-1465 [email protected] MOST CONSUMERS COMPARE PRICES WHEN BUYING AUTO PARTS, BUT LOWEST PRICE DOESN'T ALWAYS WIN AD INDEX That describes our new way of handling your inquiries about advertisements and product releases. You may go to www.motorage. com/readerservice and fill out a short form and we’ll send your request immediately (electronically) and directly to the respective manufacturers who have the information you want. IT’S QUICK! IT’S EASY! IT’S DIRECT ! You may also check the items you are interested in and fax the sheet to us at (416) 620-9790 to get more information on the products of interest. Like we said — quick, easy, direct. ADVERTISING AND EDITORIAL PRODUCT INDEX ADVERTISER INDEX.............................................................. PAGE ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ARNOTT INC ...................................................................... RCVTIP ARNOTT INC ..............................................................................49 AUTOLOGUE COMPUTER SYS INC ........................................16-17 BENDPAK INC ..............................................................................3 BENDPAK INC ..............................................................................4 BENDPAK INC ............................................................................61 BENDPAK INC ............................................................................62 CENTRIC PARTS INC ............................................................... CV4 CONTITECH VEYANCE...................................................... C2 FLAP CONTITECH VEYANCE....................................................... CVGATE CONTITECH VEYANCE............................................................. CV2 CONTITECH VEYANCE..................................................................1 DAVICO MANUFACTURING INC .......................................... RCVTIP EAST PENN MFG CO INC ...........................................................39 FEDERAL MOGUL CORP - ANCO................................................59 FEDERAL MOGUL CORP - CHAMPION .......................................51 FEDERAL MOGUL CORP - FEL PRO ...........................................47 FEDERAL MOGUL CORP - MOOG ...............................................45 FEDERAL MOGUL CORP - WAGNER ...........................................43 FOUR SEASONS ................................................................. FCVTIP G M B.........................................................................................55 GABRIEL RIDE CONTROL INC.....................................................33 INNOVA ELECTRONICS CORPORATION .............................. FCVTIP INNOVA ELECTRONICS CORPORATION ......................................11 JIFFY-TITE..................................................................................31 MESSE FRANKFURT(SHANGHAI)CO LT ......................................25 MODERN SILICONE TECHNOLOGIES ..........................................26 MODERN SILICONE TECHNOLOGIES ..........................................27 6 OCTOBER 2015 AftermarketBusiness.com ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ MOTORCAR PARTS AND ACCESS ..............................................53 MOTORCAR PARTS AND ACCESS ..............................................57 NATL PRONTO ...........................................................................15 NGK SPARK PLUGS(USA)INC .....................................................29 PHILIPS AUTOMOTIVE LIGHTING ...............................................37 RAYBESTOS BRAKES ......................................................... FCVTIP RAYBESTOS BRAKES ......................................................... FCVTIP S K F USA INC ............................................................................13 SCHAEFFLER GROUP USA INC.....................................................7 STANDARD MOTOR PRODUCTS .................................................19 THE GROUP ...............................................................................23 WALKER PRODUCTS ....................................................................9 WELLS MANUFACTURING CORP................................................21 WIRTHCO ENGINEERING INC .....................................................41 WJB AUTOMOTIVE ............................................................. RCVTIP WJB AUTOMOTIVE ............................................................. RCVTIP EDITORIAL PRODUCTS.......................................................... PAGE ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ ☐ StopTech Axle Packs ..................................................................60 Premium Chassis Components ...................................................60 MPA Master Cylinders ................................................................60 MPA Wheel Hub Bearings ...........................................................60 Hub Bearing Unit ........................................................................60 Hybrid Hub Bearing ....................................................................60 ESales BI ....................................................................................63 ESalesCounter ............................................................................63 Fluid Connection Aftermarket Line ..............................................63 Serpentine Belt Kits ....................................................................63 VDO Blower Motors ....................................................................63 Hybrid Polymer Hose ..................................................................63 List Rental Sales Tamra phillips [email protected] (440) 891-2773 Permissions/International Licensing Maureen Cannon (440) 891-2742 Reprint Services 877-652-5295, ext 121 [email protected] Outside U.S. dial 281-419-5725 Ext. 121 Marketing Boris Chernin, Marketing Manager Tel: (310) 857-7632 Fax: (310) 943-1465 [email protected] ©2015 Advanstar Communications Inc. 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AFTERMARKET BUSINESS WORLD welcomes unsolicited articles manuscripts, photographs, illustrations and other materials but cannot be held responsible for their safekeeping or return. To subscribe, call toll-free 877-527-7008. Outside the U.S. call 218-740-6477. AD DEADLINES: Insertion orders–1st of month preceding issue date. Ad materials–5th of month preceding issue date. To subscribe, call toll-free 888527-7008. Outside the U.S. call 218-740-6477. For the past 50 years, LuK has stood for quality, technology and innovation. LuK first began supplying diaphragm spring clutches to Volkswagen in 1965. Then, as now, development experts at Schaeffler played a decisive role in creating groundbreaking product innovations decade after decade. But at Schaeffler, we are MORE than just products and technology. We are truly committed to the success of our aftermarket partners and offer unique solutions for mutual success. Come celebrate with us! 50 Years of LuK Promotion Oct. 1 - Nov. 30, 2015 Years TRUE EXPERTISE Your customers have an opportunity to purchase and install† a qualifying LuK RepSet®** during the promotion and receive a $50 Visa Rebate® Card in celebration of LuK’s 50-Year Jubilee. Contact your LuK distributor or sales representative, or email us at [email protected], for promotion details, instructions, and rebate forms. † Offer valid October 1 through November 30, 2015 on select products. **Restrictions apply. WORK. LEARN. INFORM. Our industry leading technical support services just got even better. With its new online portal, REPXPERT 2.0, Schaeffler Automotive Aftermarket introduces a new standard in service for the auto care industry. Whether it’s product updates, technical training, or installation guides – with just a few clicks automotive professionals can quickly and conveniently find everything that they need to do the job right the first time. Every time. Unlock the power... REGISTER TODAY! www.repxpert.us Registration is free. STAY ON TOP OF INDUSTRY DEVELOPMENTS. Sign up today for FREE SUBSCRIPTIONS to COMMUNITY Distriribution E-News & Alerts Aftermarket Technology E-News Aftermarket Business World E-Zine EXPERT OPINION, INPUT FROM THE FIELD, FORUM COMMENTS, & SOCIAL MEDIA AFTERMARKETBUSINESS.COM/SUBSCRIBE PAGE PAGE 10 12 SHOP INSIGHT INDEPENDENT THINKING PAGE 14 WASHINGTON INSIDER DONNY SEYFER MARK SMITH STEPHEN BARLAS Automaker deals on the horizon? Parts pros need intuitive phone skills Underground tanks in focus TOP VIDEOS TO WATCH NOW Without using KPIs, how do you know if you’ve improved or gotten worse? KPIs help our industry from a broader perspective. ABRN.com/measurekpis E-commerce and the supply chain BASF predicts car colors for 2019 and beyond BRIAN LITTLEFIELD OF UPS DISCUSSES HOW THE E-COMMERCE CHANNEL AFFECTS THE STRUCTURE AND VELOCITY OF THE SUPPLY CHAIN. BASF’s 2015/2016 Color Collection features 65 global automotive paint colors. ABRN.com/basfcolors Aftermarketbusiness.com/video15 Scan the QR Code with your smart phone’s camera to watch the video The value of third-party logistics Alan Amling of UPS discusses the value of 3PLs and balancing customer demands and costs. AftermarketBusiness.com/video16 What is the final link in supply chain management? Kent Savage of Apex Supply Chain Technologies discusses supply chain inefficiencies. AftermarketBusiness.com/video11 FROM YOUR PHONE’S BROWSER, GO TO: WWW.SCANLINE.COM @Oreillyauto: Frequent short drives can decrease battery life. Give it some time to recharge to keep it going strong. @pepboysauto: Visit your local Pep Boys and ask for your free Rewards membership card. 250 points will get you a $10 Reward Card! the community— join the discussion AftermarketBusiness.com @auto_alliance: Car makers, such as BMWi and Volvo, are refusing monetization opportunities in favor of their customers’ privacy. @NavigantRSRCH: Installed energy storage enabling technology revenue is expected to reach $21.5 billion annually by 2024. Help your customers say yes A purchase decision is based on the value the customer perceives at the time. MotorAge.com/sayyes Understanding online payments to improve business Accepting online payments can help you grow your customer base and sales, get paid for services and ensure security for both your business and your customers. MotorAge.com/onlinepayments New green standards for vehicle service and repair shops The new ratings for new and used vehicles have been met with widespread consumer approval. MotorAge.com/greenstandard November 2-4 AVI Conference Las Vegas, Nev. @FederatedAP Federated Free Fuel Fridays are back! Four $50 gas cards awarded each Friday through Oct. 23, 2015. November 2-5 @AdvanceAuto Don’t believe the hype. Pennzoil shows how wax in motor oil is not the culprit behind engine sludge. SEMA 2015 Las Vegas, Nev. AftermarketBusiness.Com/Community AAPEX 2015 Las Vegas, Nev. November 3-6 November 4 NASTF General Meeting Las Vegas, Nev. February 11-13, 2016 MACS 2016 Training Event and Trade Show Orlando, Fla. INDUSTRY CALENDAR @autozone: Overfilling your oil can cause crank slap & aerate your system. The best bet is to just keep your levels on point. Ease your daily business stress by clearly identifying each step, process and requirement. ABRN.com/sopspartone MOTORAGE.COM We scan the Aftermarket Business World Facebook page and Twitter feeds to see what you are saying. Comment there to be heard. @FS_Automotive:: Is Apple making a car on a united platform to enable autonomous cars? Developing and maintaining SOPs: part one TO GET THE FREE APP: comments from AMB WORLD’S online communities 8 OCTOBER 2015 Measuring for success ABRN.COM MOST WATCHED VIDEO WEBCASTS COMMUNITY DONNY SEYFER Ô Q&A SHOP INSIGHT Co-Owner Seyfer Automotive Inc. [email protected] AUTOMAKER DEALS ON THE HORIZON? OEM partnerships could simplify the service bay he original equipment manufacturer (OEM) side of the automotive industry is on the precipice of experiencing what financial analysts call disruption. There are a number of factors at play and shop owners should be paying attention to them because what happens in manufacturing is going to affect repair shops. In April, Fiat Chrysler CEO Sergio Marchionne delivered his manifesto on what ails the manufacturing part of the automotive industry. Fundamentally he said that OEMs are addicted to capital (money they can spend) and that over time they generally are good when they make back enough to break even. He went on to say, and I paraphrase, that it only takes one bad year and they are hemorrhaging capital, which causes stockholders to lose their stock value. Why do you care? You care because if nobody wants to own auto stock, OEMs will not have money to spend to design and build vehicles. The truly scary part is that most of the players at Marchionne’s level agree with him. The core issue according to the FCA CEO is that OEMs spend a fortune in research and development creating proprietary content and designs that the majority of vehicle owners who don’t have the car-guy gene can even T Scan this QR Code to read more articles like this. Or visit AftermarketBusiness. com/Columns FREE SCAN TOOL APP: www.scanlife.com 10 OCTOBER 2015 AftermarketBusiness.com recognize. In fact, TrueCar President John Krafcik opined that most people could not identify the difference between a BMW component and a Chrysler component. Bob Lutz, a former GM executive, agreed, adding that most people could not tell a meaningful difference between an F-150, a Silverado and a Ram pickup. If you have worked the counter at an auto repair shop you know that this is true. Often customers have no idea what vehicle they drive every day. Marchionne says that OEMs need to merge and they need to reduce their R&D budget radically by partnering long term with suppliers to share technologies. The pushback is pretty typical of the industry. Former Borg Warner CEO Tim Mangello summed it up pretty well when he said that OEMs are all pretty happy with their profitability. The boom or bust nature of the industry over the years tends to level that playing field. Whether mergers are a good idea or not is a much larger conversation, but let’s consider the case for shared technology by taking a look at Apple and Dell. It could be argued that more than 50 percent of their content is shared: CPUs, memory (RAM and storage) cables, materials and video cards. How does Apple differentiate itself from Dell? They have an operating system that is unique, they have a high definition monitor and they have a slick case. But marketing is at their core. So if the OEMs were to take a page out of the computer hardware companies’ playbook what would that mean to the repair segment? Multiple brands using the same engine causes many of us pain, but it’s already going on. A huge differentiator will be the way cars look. More standardization should be the first thing that comes to mind. An engine management system might show up on many different brands of vehicles allowing technicians to be more experienced earlier in the life cycle of the system. Better quality due to less parts proliferation and suppliers having more time to perfect a product. Multiple brands using the same engine causes many of us pain, but it’s already going on. A huge differentiator will be the way cars look. If you take a look at the balance sheets of carmakers compared to the big tech companies, there is a very good business case for this. It seems to me that Marchionne may be right, but until there is some real pain he will have to be happy with his Nostradamus-like opinion. I suggest you watch connected cars and China for the pain. NEW Fleet Management Sales Start Here ONLY FROM INNOVA Product Features • Fuel economy • Driver score • Route history • Vehicle location • Crash detection + • Check engine • Vehicle maintenance • Reports & alerts The fleet manager and parts store are alerted The parts store reaches out to the fleet manager follow up with your customers while they follow their fleets Created by parts people for parts people, the Innova Fleet Services OBDII dongle gives auto parts stores a huge sales advantage. After a simple setup, both the fleet customer and the parts store are alerted of required maintenance through telematics, such as when the check engine light is illuminated or when vehicle service is due. Each alert gives the store a unique opportunity to proactively reach out to the customer and capture the parts sale. Unique to the aftermarket, the new Innova Fleet Services OBDII dongle includes all the features found on a traditional system and is more affordably priced. Easy to use, it will help your customers manage their fleets and provide them with a fast return on their investment. More sales for you. More savings for your customers. A win-win from Innova Fleet Services. For more information on how we can help your business grow, please call 714-424-6768 or visit us at www.fleet.innova.com Visit Us at Booth 4856 COMMUNITY MARK SMITH Ô Q&A INDEPENDENT THINKING President, Wholesale Auto Parts [email protected] SOUNDS LIKE A WRONG NUMBER T Parts professionals need intuitive phone skills he telephone must be one of the devil’s best inventions. It’s a true necessary evil if ever there was such a thing. After almost three decades of juggling phones, I’ve mastered taming the demon device. As good as I’ve gotten, my customers have pretty much remained the same, or should I say categorically the same. Enjoy reading these phone calls that I’ve received over the years. They are too absurd to make up. I was calling – Duh This is probably the most common of all initial responses from our customers after we answer the phone. It goes like this, “Yes, I was calling and, uhhh…” Every time I hear this, I can’t keep myself from a slight snort-laugh. For years and years, I’ve always wanted to reply, “Is that the reason my phone was ringing?” Pete and repeat Me: “Wholesale Parts and Service, this is Mark.” “Is this Wholesale Parts and Service?” Me: “Yes, how can I help you?” Caller: “Can I speak to Mark? Information directory Me: “Wholesale Parts and Service, this is Mark.” Caller: “Yes, umm, hey, would you guys know the phone number for AutoZone?” Me: (long silent pause) “You do know this is Wholesale Parts and Service, right?” Caller: “Yes I do. I need to call AutoZone to see if they’ll price match you guys.” Me: “Oh, I see, well, in that case, let’s both hang up, and you call the same number you just called, I’ll answer the phone “AutoZone,” and give you the same exact price.” Caller: “Umm, wouldn’t I just be calling you back?” Me: “Yes, but fortunately, we phone-number match. It’s a new concept.” Missing person locator Me: “Wholesale Parts and Service, this is Mark.” Caller: “Has Jim been in there yet?” Me: “Jim who?” Caller: “Jim, my husband” Me: “Who am I speaking to ma’am?” Caller: “I’m his wife” Me: “What’s your last name?” Caller: “Oh no, our last name is not “Watts,” it’s Wilson.” 12 OCTOBER 2015 AftermarketBusiness.com Me: (stupefied long silence). I’m sorry, I have not seen him yet.” Caller: “If you do, tell him to get some milk on his way home.” Time traveler Enjoy reading these phone calls that I’ve received over the years. Some of them are funny and others are bizarre, but all are too absurd to make up. Me: “Wholesale Parts and Service, this is Mark.” Caller: “What time do you guys close?” Me: “5 p.m.” Caller: “What time is it now?” Me: “4 p.m.” Caller: “Do you think I can make it before you close?” Me: “I don’t know, where do you live?” Caller: “With my girlfriend.” Me: “Where, like your location, town, etc.” Caller: “Sorry, her house is right beside her Mom’s.” Me: “What’s the name of the town?” Caller: “The name of the town is Wilson, sorry dude, it’s about 10 minutes from you. Watts is well over an hour away, I know I couldn’t make it in time if we lived there!” Me: (silence again, but longer). “Buddy, you can make it I’m sure.” Caller: “My name is Bob, not Buddy, Mike. The only problem is I’ve got three beers left, I’ve got to stop and get more on the way, and some smokes. Could you wait for me, like, 15 to 20 minutes over?” Oblivious wrong number Me: “Wholesale Parts and Service, this is Mark.” Caller: “Am I the 10th caller?” Me: “Excuse me, sir?” Caller: “Has anyone won those Randy Travis tickets yet?” Me: “Sir this is not the radio station, maybe you were listening to the radio, and heard our ad, and wrote down the wrong phone number.” Caller: “Man, I was really wanting to take my little stepsister to that concert. Are you sure I’m not the 10th caller?” Broader coverage. Better performance. Expanded line of U-joints from SKF Building on our industry-leading expertise in bearing and seal technology, SKF has updated our U-joint offering with broader coverage, including an expanded range of the high performance Brute Force line. ( "# ! $ #""$" # #"# industrial applications ( $"%"'!)" " ! "!")" ! # ##"'"! " #!" !# "#""$" # !!!% % "vsm.skf.com. %%%! "!"$ ! "! COMMUNITY STEPHEN Ô Q&ABARLAS WASHINGTON INSIDER Washington Correspondent [email protected] UNDERGROUND TANKS IN FOCUS EPA eases costs for UST inspection, testing he costs of complying with the new rule on underground storage tanks (USTs) won’t be nearly as onerous for service stations and others in the aftermarket sector as once thought. The Environmental Protection Agency (EPA) eased some of the mandates it had proposed back in late 2011 when it published a final rule in mid-July. Five years in the making, the rule adds maintenance and inspection requirements to equipment rules for USTs first established in 1988. USTs holding petroleum and motor oil are ubiquitous in the automotive service station sector. The changes the EPA made to the final rule resulted in much lower compliance costs for service stations, which account for about 360,000 of the 560,000 tanks that exist, according to Bob Renkes, executive VP & general counsel, Petroleum Equipment Institute. The Petroleum Marketers Association of America (PMAA) estimated the proposed rule would have cost upwards of $6,000 per site. Mark Morgan, regulatory counsel to the PMAA, says the burden is now estimated to be $2,377 per site. Kirk McCauley, director of member relations and government affairs WMDA Service Station & Automotive Repair Association, says the final rule is “not as bad as I expected.” His group had a number of problems with the proposed rule after it was published in 2011. “Not having to check containment sumps monthly will save a lot of backs; some covers are in the 200 pound class,” he notes. They will have to be visually checked once a year. “And the elimination of interstitial space testing on storage tanks’ underground piping and sumps is the right T 14 OCTOBER 2015 AftermarketBusiness.com decision,” adds McCauley. That would have been a major problem and cost for service stations with old tanks with secondary containment. The owners would have had to break through concrete or asphalt to get to the interstitial opening to do the test. “A lot of what is in this regulation is already standard practice. Overall I think it will cause some heartburn but not as bad as the industry was expecting,” notes McCauley. PMAA’s Morgan believes testing requirements for sumps under the final rule would be very costly and burdensome. PMAA is seeking clarification from EPA and will reassess, he said. The initial rule was established in 1988. It set standards for spill, overfill, corrosion protection and release detection. But there are still approximately 6,000 releases each year. The EPA says lack of proper operation and maintenance of UST systems is the main cause of new releases. For example, EPA required spill prevention equipment to capture drips and spills when the delivery hose is disconnected from the fill pipe, but did not require periodic testing of that equipment. The final rule doesn’t require anyone to install new equipment, or for those buying new USTs to purchase tanks with newer, more expensive features. The rule is all about inspecting and testing equipment that was specified in the 1988 rule. The implementation date for most of the new requirements is three years hence. The inspection requirements are not expected to be onerous. Some of the testing requirements could be costly, though, especially for service stations and gasoline retail locations that don’t have the expertise to do the testing. They will hire outside contractors, Inspection requirements are not expected to be onerous. according to Wayne Geyer, executive VP, the Steel Tank Institute. The new testing requirements include testing of spill prevention equipment (using vacuum, pressure, or liquid methods) every three years unless the equipment is double-wall spill prevention equipment and both walls are periodically monitored for integrity. Integrity monitoring must be performed at least once every 30 days. The rule includes a three-year testing requirement for containment sumps used for interstitial monitoring of piping unless the containment sumps are double wall and the integrity of the walls is periodically monitored. Integrity monitoring must be performed at least once every 30 days. The rule also requires annual operation and maintenance tests on electronic and mechanical components of release detection equipment to ensure they are operating properly. This includes automatic tank gauge systems and other controllers, probes and sensors, automatic line leak detectors, vacuum pumps and pressure gauges, and handheld electronic sampling equipment associated with vapor and groundwater monitoring. 7:18 AM AUTOPARTS rs Welcome Joe Wate AutoParts Avenue 2952 Commonwealth 1 Buena Park, CA 9062 58 62-03 888-9 HOME PAGE ILS CUSTOMER DETA N HOME NAVIGATIO DETAILS BUSINESS PERSONAL Alex’s Garage BUSINESS Main Office Address Street lth 8454 Commonwea Address Street lth 8452 Commonwea Schedule State CA Customer List Zip 90621 rtunities Oppo Details Contact Phone No. 1 714.522.3551 Map Zip 90621 Contact Details Phone No. 2 800.962.0358 Business Type of Business Sales Business Type of Business General Mechanic Business Hours 7AM-6PM Authorized Signer Mary Smith State CA 1 Authorized Signer Alex Smith 2 Logout Back Y DIRECTORY INVENTORY STOCKING QUANTITIES SELECTED CATEGORY: AXO OIL FILTERS 68 ITEMS Back QUICK PRODUCT GROUPS Favorite List Selected Category: My Inventory Anco ATP AXF Filters DETAILED AXO 618-51365MP Qty. 12 Permatex W 2 SPIN-ON OIL FILT Qty. 2 AXO Qty. 2 AXO Qty. 2 SPIN-ON OILehicle Lookup Stock Check SPIN-ON OIL der SPIN-ON OIL Non Catalog AXO Qty. 12 My Invoices and Statements SPIN-ON OIL AXO Qty. 12 AXO Qty. 12 SPIN-ON OIL Body Parts SPIN-ON OIL Favorite Lists AXO 618-51565MP Qty. 12 Support / Feedback SPIN-ON OIL FILT Gunk Trico Wix ALEX’S GARAGE AXO 618-51372MP Qty. AXO AXO Oil Filters AXO Air Filters SPIN-ON OIL FILT AXO 618-51522MP Qty. 12 CREATE NEW ORDER SPIN-ON OIL FILT ADD TO CURRENT ORDER STAY ON TOP OF INDUSTRY DEVELOPMENTS Sign up today for FREE SUBSCRIPTIONS to TRENDING Service Repair E-News & Alerts Certified Technician E-News & Alerts Aftermarket Business E-Zine DISTRIBUTION NEWS, NOTES AND HAPPENINGS AFTERMARKETBUSINESS.COM/SUBSCRIBE Photo: AAPEX COVER STORY AAPEX AIMS TO HELP BUSINESSES GET IN FRONT OF CHANGE BY JAMES E. GUYETTE | CONTRIBUTING EDITOR again anchoring Automotive Aftermarket Industry Week (AAIW), the Nov. 3-5 Automotive Aftermarket Products Expo (AAPEX) is breaking last year’s record-setting lineup of exhibitors as more than 2,400 manufacturers and suppliers will be showcasing the latest products, services and technologies to some 39,000 targeted and qualified industry buyers landing in Las Vegas from 140 nations. Co-owned by the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA), all of AAPEX’s available booth space has been sold out. Organizers of the concurrent Nov. 3-6 Specialty 18 OCTOBER 2015 AftermarketBusiness.com Equipment Market Association (SEMA) Show also are reporting an especially positive response. (Attendance badges are reciprocally valid for both events.) AAPEX this year will be hosting about 330 first-time exhibitors, and booth operators from more than 30 countries will be represented, including Australia, Argentina, Brazil, Canada, China, France, Germany, Hong Kong, India, Japan, Mexico, Singapore, Spain and Turkey. “Although AAPEX does not have a theme each year, the overall theme for this year’s event is AAPEX: Ahead of the Curve,” says Arlene Davis, vice president of meetings and events at the Auto Care Association. “Early in 2015, we launched a major rebranding initiative to clearly convey what AAPEX represents for both exhibitors and buyers in the global automotive aftermarket industry.” Numerous changes have been implemented as part of the rebranding and transformation process. A redesigned show floor features sections positioned according to parts categories, making it easier for attendees to navigate the aisles and locate specific booths and products. An all-new logo with a streamlined look and contemporary feel has been created to be in sync with the many technological advances taking place in the industry – plus the design MADE THICKER FOR TOUGHNESS. Twice as thick as the competition Ditto. When OE steering column shift tubes break at vulnerable stress points, the result is a labor-intensive repair, so you need a replacement that will last. TechSmart® Shift Tubes are twice as thick as the competition at the highest stress point, making them the stronger, longer-lasting choice. There’s something to be said for a thick skin. TechSmart® Steering Column Shift Tubes • High-quality direct-fit replacement for failed original • Meticulously engineered for toughness • 3.2 mm at the highest stress point, twice as thick as the competition The Evolution of Parts Rhinoceroses have the thickest skin of any terrestrial mammal. The skin on their backs and flanks can be 1 inch thick. TechSmartParts.com TRENDING Ô COVER STORY AAPEX THIS YEAR WILL BE HOSTING ABOUT 330 FIRST-TIME EXHIBITORS, AND BOOTH OPERATORS FROM MORE THAN 30 COUNTRIES. highlights the unique value delivered to industry buyers streaming through the turnstiles. “While at AAPEX, buyers get to explore the most innovative technologies and solutions, talk in-person to manufacturers from around the world, and gain the tools necessary to stay ahead of the curve,” Davis says. AAPEXedu, which starts on Monday, Nov. 2, is the educational program. Nearly 50 free sessions will be conducted, many with a dedicated focus on emerging and disruptive technologies to help attendees stay competitive in today’s high-tech and highly sophisticated business environment. Many topics will be relevant to exhibitors as well as buyers, including “Will You Be Able to Attract the Best Millennials to Your Sales Team,” “Gen Y Decoded,” “Selling in the Age of Disruption,” “How to Profit from Content Marketing” and “How to Put Your Online Marketing Toolbox to Work.” Sessions will be identified in newly designated tracks, including disruptive technology, vehicle systems technology and operating your business technology. Subjects include 3D Printing, Intelligent Transportation Systems, Telematics, 21st Century Technology Vehicles, Leveraging the Third Platform, Warehouse Robotics, New Safety Technology and Transforming Traditional Aftermarket Supply Chains. “In addition to the AAPEX General Session presentation by Louis Efron of Tesla Motors, a redesigned show floor, new branding and AAPEX TV, attendees will benefit from more technology in booths than ever before. We’re also adding demonstration areas for emerging technologies to show attendees the potential impact on their businesses,” says Davis. “We’re launching AAPEX TV, bringing a whole new level of excitement and exposure,” she says. A full news crew will report on various programs and features, airing on televisions in the lobbies of the Sands Expo Center, on the show floor and in guest rooms on its own channel in the Venetian/ Pallazo, the Mirage and the Westgate Hotel (formerly the Las Vegas Hilton). “U.S. exhibitors are taking additional 20 OCTOBER 2015 AftermarketBusiness.com space and are bringing a variety of staff to meet the demands of the AAPEX buyer,” Davis notes. “They have folks who can respond to technical questions, to international buyers and much more. In addition, many of our exhibitors are showing new high-tech tools, parts and much more. Many of them will be showing more about telematics and other challenges facing the industry.” Under one roof All of the products on display will be listed and searchable on the www. aapexshow.com website and Mobile App in categories that align with industry standards. “This change will make it easier for attendees to identify what they’d like to see at AAPEX and ensure they have the right tools for the job,” she explains. “It’s free, easy to download and install, and even easier to use. New this year, exhibitors are listed within product categories that align with industry standards, making it super easy to use the app’s Product Category search to find what you’re looking for at AAPEX.” Another addition is ExpressEdu, a series of free, short, thought-provoking presentations on concepts, practices and ideas offered to accommodate attendees’ busy schedules. “We anticipate that AAPEX will once again attract the key buyers and decision-makers – both domestic and international. The key decision-makers come prepared to do business and to learn as much as they can from manufacturers, industry experts and colleagues,” says Davis. “WDs and retailers can see, touch and compare the latest products, services and technologies at AAPEX, all under one roof. AAPEX provides the opportunity to meet in person with key manufacturers to solidify existing relationships and build new partnerships,” she emphasizes. “With nearly 800 U.S. manufacturers, of which more than 300 export, AAPEX provides an excellent opportunity for buyers to meet new U.S. export partners to grow their bottom line.” The event works closely with the U.S. Commercial Service – the export promotion arm of the U.S. Department of Commerce – to help support and assist buyers traveling to AAPEX. Many buyers arrive as part of official international buyer delegations led by specialists from the U.S. Commercial Service. When traveling with an official delegation, the specialists help buyers identify exhibitors that export, determine the market potential of product lines, set up appointments with potential suppliers and facilitate in-person meetings. “All industry segments will benefit by attending AAPEX,” says Davis. “All total, we have approximately 20 different buyer categories. In 2014, we had solid growth in several of our target buyer categories, including independent repair garages, auto parts retailers, warehouse distributors and tool and equipment dealers,” Davis reports. “Attendees also represent program groups, import specialists, tire dealers, mass merchandisers, franchised and independent dealers, fleets and PBE jobbers. As an added bonus, many industry conferences also will take place during AAPEX, giving buyers the benefit of maximizing their time and money while in Las Vegas.” Current conferences include the 2015 Automotive Warehouse Distributors Association (AWDA) Annual Business and Education Conference, the Aftermarket Auto Parts Alliance Micro Conference, the National Automotive Service Task Force (NASTF) Fall 2015 General Meeting, the International Heat Transfer Association (NARSA) Annual National Convention, the AVI Training Conference, the Remanufacturing Conference, and the Fixed Ops Magazine Conference and Expo. Peter MacGillivray, vice president of events and communications at SEMA, encourages attendees to take a closer look at what the Tuesday-Friday, Nov. 3-6 SEMA Show has to offer. “We’re seeing buyers stay longer and take advantage of every opportunity to connect with exhibitors at the SEMA Show,” he observes. “These are buyers who are focused on getting the most out of the SEMA Show and, in fact, we know that buyers who are at the show for the entire duration tend to be more successful than those who come for just one day.” Always Choose from Wells. You have one chance to get it right in any ignition repair. That’s why 100% of Wells ignition coils must ® pass multiple operational tests for OE performance and durability before it goes out the door. When your REPUTATION is on the line, make sure the WELLS NAME IS ON THE BOX. PART # C1681 LEXUS 2008-2012 WE’D LOVE TO TELL YOU MORE Please VISIT WELLS and NGK at AAPEX Booth 1833 PART # C1395 BUICK 2004-2005 CHEVROLET 2002-2006 GMC 2002-2006 HUMMER 2006 ISUZU 2003-2008 OLDSMOBILE 2002-2004 SAAB 2005-2009 PART # C1799 FORD 2010-2012 LINCOLN 2010-2013 CONTACT your WELLS SUPPLIER, or visit us on-line at www.WellsVE.com © Wells Vehicle Electronics TRENDING THE EMERGING MARKETS SPECIALTY COMMERCE CENTER Finding opportunity in aftermarket sweet spot BY MARTY MILLER | EXPERIAN AUTOMOTIVE ormer college football coach Lou Holtz once said, “In the successful organization, no detail is too small to escape close attention.” It’s a quote I believe should be considered by many aftermarket executives. When you think about the business opportunity that exists for aftermarket organizations, it’s fairly finite. The sweet spot for these companies consists of vehicles that are six to 12 years old and have recently come off of warranty. In the grand scheme of the industry, this limits the number of prime target customers these companies can attract. Due to the natural limitations of the aftermarket industry, it’s important for these organizations to analyze the data and understand as much detail as possible to get a better sense of where their customers are and what inventory they need to stock. By digging into the data, aftermarket companies will better position themselves for success. Breaking down the sweet spot by region and state Today there are approximately 89 million vehicles within the aftermarket sweet spot. To offset the limited number of vehicles that fall within their prime target, aftermarket companies need to understand where these vehicles are located so they can better manage their inventory. At a regional level, the Northeast has the highest concentration of those sweet-spot vehicles on the road at nearly 37.5 percent. It is followed by the South (35.7 percent), the Midwest (35.2 percent) and the West (33.5 percent). Census region Northeast South Midwest West Market share of sweet spot 37.5% 35.7% 35.2% 33.5% Diving a bit deeper, we also found that Maine and Massachusetts are the only states with more than 40 percent of sweet-spot vehicles in operation, at 41 percent and 40.1 percent, respectively. Interestingly, although the West has the lowest percentage of vehicles that fall within the sweet spot, Hawaii has the fifth-highest share, at 37.9 percent. On the opposite end of the spectrum, three states have sweet-spot shares below 30 percent. Oregon and Idaho are at 29.7 percent and 29.5 percent, respectively, while Oklahoma comes in at 29.4 percent. Parts-level breakout at lower geography levels is crucial to product planning Understanding where certain vehicles are located can only help these organizations so much. It’s critical for aftermarket companies to gain insight into which vehicle parts are most prevalent among certain models. This level of detail can help 22 OCTOBER 2015 AftermarketBusiness.com these companies properly manage their inventory and market to potential customers. For example, when we consider battery group sizes, the detail is especially important. For 2014 model year vehicles, the battery group size with the highest market share was 94R, with more than 1.9 million light-duty vehicles on the road today. However, when we look at the first model year of the current sweet spot, 2004, group size 94R has fewer than 177,000 vehicles. Compare that with the group size 78, which has more than 2.4 million vehicles in the 2004 model year still on the road. Currently, the top five battery sizes make up 47.2 percent of total vehicles on the road: Group size 24F 65 78 35 48 U.S. share 11.1% 10.4% 9.9% 9.5% 6.2% However, when viewed regionally and only for battery group sizes within the sweet spot, the breakdown of part numbers and volumes varies due to the different vehicle mix within each geography area: Group size Top five sweet-spot batteries Midwest Group size Northeast 24F 2.2M 24F 2.5M 34 2.2M 35 1.5M 78 2.0M 65 1.2M 65 1.7M 51R 1.1M 48 1.4M 34 1.0M Group size South Group size West 24F 5.5M 24F 3.5M 65 3.5M 35 1.9M 78 2.9M 65 1.6M 35 2.8M 78 1.4M 48 2.5M 51R 1.3M Breaking this down further to metropolitan area or even ZIP Code would yield even different results. A database of automotive detail Experian Automotive provides a rich breadth of automotive aftermarket data. Experian’s North American Vehicle Database has more than 9.5 billion records with information on 745 million vehicles in the United States and Canada. • Name Brand Quality Parts • Full Service Supplier • Strategic Business Partner • More Than 5,000 Outlets in North America www.TheGroupAPSG.com TRENDING INTERNATIONAL MARKETS VENDORS EXPLORING OEM PARTNERSHIPS QA HONDA TAKES NEW ROUTE IN TECHNOLOGICAL QUEST INTERNATIONAL NEWSMAKER BY JAMES E. GUYETTE | NEWS CORRESPONDENT n a series of moves likely to benefit inventors and vendors of cutting-edge automotive innovations, new Honda CEO Takahiro Hachigo is implementing a heightened emphasis on developing advanced technologies while easing up somewhat on reaching what has been described as overly ambitious vehicle sales goals that have been over-extending the company’s existing engineering resources. Hachigo, who assumed the Japanese automaker’s top position in June, replacing Takanobu Ito, says the company is interested in exploring technological alliances with other OEMs along with further enhancing its in-house research and development efforts. He invites other industry vendors to contribute their own ideas and concepts. TRENDS & MARKET ANALYSIS In July Honda launched the significantly redesigned 2016 Accord at a ceremony saluting recently unveiled upgrades to the company’s Silicon Valley R&D facility. The spotlighted rollout of the Accord “symbolizes our commitment to advanced technology and vehicle connectivity for the benefit of our customers,” says Nick Sugimoto, the California laboratory’s senior program director. “This is the most high-tech Accord ever built, and now the highestvolume vehicle in the entire industry to offer Android Auto and Apple 24 OCTOBER 2015 AftermarketBusiness.com CarPlay. Upgrades to Accord technology also include the adoption of Honda Sensing, a comprehensive suite of safety and driver-assistive technologies,” he says. “Through a new open innovation initiative, the just-announced Honda Xcelerator, we will provide resources to technology innovators to help rapidly develop prototypes with the potential to transform the automotive experience,” Sugimoto adds. The program provides funding for proof-of-concept prototyping and a chance to work directly alongside company engineers in a collaborative atmosphere that encourages mentoring, according to Frank Paluch, an R&D divisional president. Innovators will also have the opportunity to pitch their technologies to Honda’s global business units once their prototypes are developed. (More information can be obtained at a new specialized website: xcelerator.hondasvl.com.) “As an industry, we are on the verge of some major transformational changes brought on by the convergence of what have been, to this point, largely disparate technology disciplines,” Paluch says. “Honda will embrace and help lead this convergence. Our operations in Silicon Valley are a testimony to our focus on this new direction in our product and technology development efforts.” The Silicon Valley lab, which was first established in 2000, is dedicated to researching and prototyping game-changing innovations and harnessing new ideas and technology. JEFF NEDWICK Strategy director at Infor WHAT EXACTLY IS BIG DATA? Big data, or big data and analytics technology, is any technology that facilitates the capture, consolidation, dissemination and analysis of data coming from any source, in any format and at any speed. Q: How is this technology being applied at the manufacturing level? A: Automotive manufacturers can leverage big data technology in several ways. The most common use case is predictive maintenance. But for automakers, predictive maintenance can refer to optimizing the maintenance of plant floor equipment – through real-time monitoring of the equipment and its operating environment, or monitoring of the vehicle itself. The latter case involves real time analysis of vehicle sub-systems, which can aler t the driver of an impending component failure and route them to the nearest repair shop with the replacement part in stock. One way automakers are tr ying to differentiate their vehicles in today’s extremely competitive market is by providing a better customer experience. Typically that equates to extending the driver’s connected lifestyle into the vehicle and that is done by utilizing big data and cloud technologies to synthesize vehicle data with driver TRENDING Ô INTERNATIONAL MARKETS HONDA’S SILICON VALLEY LAB IS DEDICATED TO RESEARCHING AND PROTOTYPING GAME-CHANGING INNOVATIONS AND HARNESSING NEW IDEAS AND TECHNOLOGY. data and present it on the world’s largest mobile platform – the vehicle’s infotainment system. And finally, savvy automotive companies recognize the monetary value of all that vehicle data and are looking into ways to use it to create a new source of revenue by reselling it to third parties who can use it for extremely targeted and timely product offerings. Current areas of focus include connected mobility, novel human-machine interfaces, supporting app developers through initiatives such as the Honda Developer Studio and computer science research for vehicle intelligence, he explains. The engineers also spearhead the company’s continuing working relationships with other Silicon Valley-based technology firms. Q: How can aftermarket manufacturers benefit from cloud technology? Buckeye collaboration A: Af termarket manufacturers are no dif ferent to other automotive vehicle or components supplier manufacturers in that they now recognize they can no longer afford to be in the data center business. Capital that is currently tied up in owning and maintaining an IT infrastructure could be better used to fund R&D efforts to develop innovative new products or to expand manufacturing capacity to support growth initiatives. A good example of this is Ambac International, a global manufacturer of diesel fuel systems, who recently decided to move to the cloud because their aggressive growth objectives were being constrained by their legacy on premise ERP system. Cloud-based solutions have a lower total cost of Honda and The Ohio State University recently celebrated the grand opening of the new Simulation Innovation and Modeling Center (SIMCenter) by inviting other potential industry partners to collaborate at the facility, which is designed to advance product performance and manufacturing processes through computer-aided simulation. Located in Smith Laboratory on the Columbus, Ohio campus as part of the College of Engineering, the SIMCenter was launched as a result of a $5 million contribution from Honda; it began operating late last winter. The center is focused on researching and developing new and improved computational engineering tools for all aspects of vehicle design and manufacturing. “The SIMCenter is a little over one year old, and we READ MORE ABOUT AFTERMARKET TRENDS ownership and help lower overall IT costs through reductions in data center spending and in IT personnel costs. Q: Is this technology applicable to suppliers vending to OEMs? A: Automotive suppliers have a great deal to gain by moving their enterprise systems to the cloud. They live in a world of razor-thin margins where every dollar not directly tied to the development of innovative new products, expansion into new markets or adding capacity to keep up with customer demands must be heavily scrutinized. As growth in emerging markets continues to outpace both NAFTA and Europe, OEMs are investing in manufacturing facilities in or near the markets they will sell into and they’re taking their suppliers with them. As a cost of doing business, suppliers are often required to enter into high-risk operations – operations that provide uncertain futures and in locations short on IT resources – on short notice. Dedicated, on premise IT infrastructures and support staff make little sense in these highly volatile environments. A better solution is to utilize cloud-based enterprise systems which can be stood up much quicker, require fewer on site IT resources and dramatically reduce the need for capital. Suppliers to OEMs also carry more R&D responsibility than ever before. This R&D requires access to capital – capital that is too often tied up in supporting on-premise enterprise systems. have already received significant industry funding, primarily from Honda,” says SIMCenter Director Rob Lee. “With 10 faculty members actively participating in the center, and an aggressive effort to hire research staff underway, we are now ready to reach out to potential industry partners to help them with their research and development needs.” The SIMCenter seeks to utilize computer-aided engineering to improve the accuracy of virtual testing for new materials and designs. These innovations will save time and resources during development, and can predict outcomes with greater precision, he says. Since 1988, Ohio State and Honda have continuously partnered on initiatives in education, research, product development and public service. This latest step in the partnership will accelerate the adoption of virtual engineering methods to enable greater product innovations and benefit future customers, according to Lee and Paluch. “Every company has a different vision for the future of mobility, however, we all have a common need to develop ideas into new solutions as quickly, safely and efficiently as possible,” says Paluch. “The collaboration in the research environment of the SIMCenter by talented young engineers trained in advanced CAE (computer-aided engineering) methods will help advance the field much more quickly than we could do alone. At the 31st Annual Honda Supplier Conference held TRENDING Ô INTERNATIONAL MARKETS Q: What are some of the latest developments in aftermarket supply chain management? Q: Is this technology available and affordable for small to midsized distributors? A: Automotive aftermarket supply chains are already some of the most complex in the world and they are getting even more complex thanks to growth in emerging markets and its requirement to forge partnerships with local suppliers. Increased interest in connected car/autonomous cars is also adding complexity to the supply chain by attracting many non-traditional suppliers from outside the automotive industry. A: Yes. All participants in the supply chain can benefit from these intuitive, affordable tools, especially when deployed in the cloud. Management of these incredibly complex supply chains requires tools that provide visibility into every link of the supply chain and identify possible supply chain bottlenecks before they delay shipment of parts to a customer and potentially halt production. Such solutions foster collaboration by providing an intuitive user experience and easily integrate into existing ERP systems. Q: How can this technology assist at the warehouse level? A: Careful management of the entire supply chain is critical when responding to last minute schedule changes from an OEM – a breakdown in one link of the supply chain can be the difference between on-time delivery of parts to the customer or shutting down their assembly line. Advanced supply chain management solutions automatically notify suppliers when a schedule change is made. Embedded trading partner profiles ensure that customer-specific shipping labels, documents and Advanced Shipment Notifications (ASNs) are automatically generated by the supplier. Barcode readers in the customer’s warehouse verify the accuracy of the received shipment, automatically notify relevant personnel, update production systems and authorize payment to the supplier. The entire process can be tracked by production planners and purchasing personnel from their desktop or a mobile device via easy-to-use, customizable dashboards and alerts. in Columbus in April, the automaker honored 64 North American auto suppliers for their achievements in providing parts for Honda and Acura vehicles. “The concept of value is determined by the customer, and that value is based on our ability – Honda and our suppliers together – to deliver in terms of quality, cost and delivery,” says Tom Lake, vice president of North American purchasing. “Only by making long-lasting, durable products can we create long-lasting, durable relationships with our customers.” In 2014 Honda’s 682 North American suppliers combined to provide a record-setting $26.3 billion worth of parts for the more than 1.8 million Honda and Acura passenger vehicles Honda produced last year in the United States, Canada and Mexico. Lake notes that 2015 is being celebrated as “The Year of Honda” with a number of new product introductions taking place this year, including the Acura NSX supercar; the HondaJet aircraft; and Honda’s return to Formula One auto racing – as well as major new models such as the allnew 2016 Honda HR-V crossover, a new 2016 Honda Pilot and 2016 Honda Civic. 28 OCTOBER 2015 AftermarketBusiness.com Q: Can it be applied to customer relations management? A: Aftermarket parts manufacturers who sell to both OEMs and to retailers/distributors face unique CRM challenges. The technology should include an embedded, up-to-date trading partner catalog that eliminates the need for the supplier to manually keep track of changes to data exchange requirements for every customer or create a data exchange for every new customer added. Q: Is it also suitable for customer billing purposes? A: For aftermarket suppliers that also sell to OEMs, EDI capabilities embedded within customer management solutions integrate complex CUM (Cumulative) billing processes with ERP capabilities are a necessity. Web-based EDI services that run in the cloud reduce EDI Value Added Network (VAN) charges while seamlessly integrating with on premise ERP systems. Q: Are retailers using this technology? A: Many retailers and distributors use cloud-based solutions to electronically exchange data shipping, billing and order status information with manufacturers. Q: Is it practical for auto repair shops to utilize? A: Automotive dealers typically use the EDI capabilities embedded within a Dealer Management System for the exchange of data with their OEM customers. However, a cloud-based EDI solution could be very valuable for exchanging order, billing and shipping information with the many suppliers of aftermarket parts and services. Jon Minto, senior vice president of engineering planning, is encouraging its vendors to continue adding flexibility and agility into their manufacturing operations in order to keep up with the increasing complexities involved in meeting expanding customer tastes and regulatory requirements. “Being an agile manufacturer enhances the value of your production characteristics, elevates your competitive advantage and supports our customers,” says Minto. “Honda R&D Americas is taking on even greater responsibilities within our global R&D operations, leading development of some critical new global models, like the upcoming 2016 Civic,” says Mat Hargett, vice president of Acura development. “We are challenged with developing new technologies that give joy to our customers while addressing societal concerns such as safety and the environment – all while taking our quality to new levels.” “We know from experience that outstanding quality performance is an essential part of competitiveness as well as supplier success,” adds Mark Willoughby, division manager of North American procurement. For repairs that are right the first time, your best bet is an original equipment part. NTK Oxygen Sensors are original equipment on more vehicles worldwide than any other brand. For details, go to NGKsparkplugs.com Come see us at AAPEX booth # 1833 TRENDING CUSTOMERS DEALERSHIPS AUTO SALES GOING DIGITAL QA VEHICLE, PARTS SALES INCLUDE MORE ONLINE INTERACTION VENDOR NEWSMAKER BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR ANDREAS RONNESETH CTO of RevolutionParts uto dealerships and OEMs will increasingly turn to digital car showrooms to reduce costs and increase sales. According to new research from Frost & Sullivan, new types of stores and online showrooms like Audi City, BMW Brand and the new MINI Pop-Up stores represent the future of auto retailing. Frost & Sullivan’s “Executive Outlook of the Future of Automotive Retail” found that investments in digitization worth $500 million to $5 billion are expected from multiple vehicle OEMs and dealer groups in Europe and North America in 2016, and that 20 percent to 30 percent of the conventional dealership space will be allocated for digital technology. Digital spending is expected to account for roughly 70 percent of marketing and advertising budgets of dealers and OEMs. TRENDS & MARKET ANALYSIS Parts and service, likewise, will include more digital and online components. “Sales of parts are increasingly going online, with most sellers across different markets adopting an eCommerce platform for selling them,” says Frost & Sullivan aftermarket senior Scan this QR Code to read more articles like this. Or visit Search Auto Parts. com/Trending GET A FREE SCAN TOOL APP AT: www.scanlife.com 30 OCTOBER 2015 AftermarketBusiness.com research analyst Anuj Monga. “OEMs are partnering with existing online retailers, or in some cases even selling their parts directly. The independent aftermarket retailers are increasingly upgrading their websites, including payment gateways and providing value-added fulfillment options.” Modern customers are much more price sensitive and much less loyal to a particular brand or dealer, according to Frost & Sullivan. According to Monga, telematics is another key enabler in the evolution of parts, and service retail and different market participants are developing systems that connect with the car remotely and help with in-vehicle sales. Luxury brands are leading the way in digital retailing. Audi, Jaguar Land Rover and Nissan have already digitally revamped existing showrooms for retail and after-sales purposes in Europe. Domestically, OEMs like Lexus and General Motors/Cadillac are approaching digitization primarily in existing showrooms and encouraging their sales forces to apply digital methods. By incorporating digital technology into traditional retail processes, automakers and dealers can provide an immersive experience for customers. The primary obstacle to this is the cost of modernizing store elements WHAT ARE SOME KEY CHALLENGES DEALERS FACE IN SELLING PARTS ONLINE? RevolutionParts provides a platform that helps auto dealerships establish online parts stores. As of 2015, the company has processed $100 million in online parts sales. A: I think the technology is pretty easy to use at this point. What is a challenging for parts departments in particular is getting some of the marketing off the ground. They also have to recognize that selling parts online is a separate business and you have to run it as such. You can’t just set up a store and expect orders to come in. We spend a lot of time with dealers just explaining how to get the word out about the site. Q: Are there many operational challenges? A: One thing dealers are equipped to do is ship parts. We don’t see many logistics issues. They do need to staff appropriately to answer questions for online customers. Customers also want to know how quickly they can get a part. Dealers may not have the level of inventory to send a part immediately. It varies. Getting a part quickly can be a challenge. and investing in digital technology and background infrastructure. Marketing of these new capabilities will also be a key part of making them successful. READ MORE ABOUT AFTERMARKET TRENDS IN THE U.S., OEMS CANÕT SELL CARS DIRECTLY TO CONSUMERS VIA THE INTERNET OR POP-UP STORES, AS TESLA FOUND OUT WHEN IT CHALLENGED THIS MODEL. BUT TESLA IS ABLE TO OPERATE IN A LIMITED FASHION IN SOME REGIONS. Q: What misconceptions do dealers have about online parts sales? A: They want sales to ramp up right away. There is a misconception about how long it will take to establish yourself online. You have to set the expectation that it will take three to six months to see if it’s working, or if you have the right marketing strategy. “OEMs and dealers will partner up to pilot digital stores and to measure lots of KPIs – footfalls, likes, dislikes, level of engagements, demographics, brand awareness, customer age, lead response time, and vehicle configurability satisfaction,” says Frost & Sullivan Automotive & Transportation Team Leader Neelam Barua. “This will lead OEMs and dealers to decide on furthering the new digital initiatives in their traditional retail process.” There are some limits to how far this can go. In the U.S., OEMs can’t sell cars directly to consumers via the Internet or pop-up stores, as Tesla found out when it challenged this model. (Tesla is able to operate in a limited fashion in some regions.) In Europe, things may play out differently. “The expiration of the EU’s block exemption regulations is seen as an opportunity to restructure dealership networks, eliminate underperforming dealers, and cease multi-brand retailing,” Barua says. “Restructuring will include digitization of showrooms in strategic locations to capitalize on the halo effect of digital showrooms.” According to Frost & Sullivan, this multi-channel retailing strategy that incorporates digital approaches is in part a response to the shrinking of the dealerships network that took place over the past few decades and the declining number of car buyers that visit showrooms. While sales are increasing, modern customers are much more price sensitive and much less loyal to a particular brand or dealer. “The challenge for automotive OEMs is not only to devise a new sales strategy, which could bring down the total cost of the vehicle, but also to maintain the same customer loyalty level as before,” Barua says. “To achieve these ends, OEMs will introduce multiple touch points to the car purchase process by 2016.” According to Barua, 50 percent to 60 percent of sales leads will originate from digital channels by 2016; beyond 2020, digitization will “enable lead conversion ratio improvements of more than 80 percent.” '2.#%'#+((;g6+6' #+((;g6+6' 7+(:25/'/($'(5,12,/ &22/(5&211(&7256 ® 450 million 7KDWøVKRZPDQ\-LII\WLWHSDUWVDUHLQVHUYLFHZRUOGZLGHWRGD\,QIDFW FKDQFHVDUHZKHWKHUUHSDLULQJDQDXWRPDWLFWUDQVPLVVLRQUDGLDWRURU DX[LOLDU\FRROHUWKH2(0XVHG-LII\WLWHĖXLGĕWWLQJV 5HSODFHD-LII\WLWHZLWKD-LII\WLWHWRPDLQWDLQSUHPLXPTXDOLW\ ÿDIWHUPDUNHWMLII\WLWHFRP magenta cyan yellow black ES681128_AMB1015_031.pgs 09.30.2015 01:48 ADV TRENDING THE EMERGING MARKETS TECHNOLOGY SOLUTIONS NEXT-LEVEL NETWORK TECHNOLOGY SOLUTIONS NEWSMAKER NEW IT SYSTEMS HELP ARCH AUTO BE MORE RESPONSIVE BY BRIAN ALBRIGHT | CONTRIBUTING EDITOR hen the manager of Arch Auto Parts’ Atlantic Avenue location in Brooklyn, N.Y., discovered smoke pouring into the basement from a fire in a nearby building in July, the fire department quickly had the facility evacuated and shut off the power. But that didn’t stop the store from doing business. Thanks to a new voice-over-Internet protocol (VoIP) phone system and a new IT infrastructure, all calls were forwarded to another one of Arch’s 10 locations. Arch was able to continue to fill orders remotely. TRENDS & MARKET ANALYSIS The IT upgrade was part of a company-wide rebranding effort. While Arch Auto Parts is well-known with repairers in the New York area, the company didn’t have as much visibility with retail consumers as big box competitors like AutoZone. Arch remodeled its stores to be more consumer-friendly, and also deployed the new phone system, a new point of sale (POS) solution, new IT network infrastructure, and a GPS-enabled dispatch and delivery system. “We’ve been in business 30 years, and we really wanted to let retail shoppers know more about us,” says vice president of marketing Lucy Henner. “We wanted shoppers to know that we were in the neighborhood, and that we’re open and responsive to retail customers as well as shops. That needed to be obvious from outside the stores as well as inside.” 32 OCTOBER 2015 magenta cyan yellow black QA DANIEL BREYRE Product and Business Insight Manager for Hardware at MakerBot More flexible phone, POS systems Arch Auto Parts is a member of the Automotive Parts Service Group, and in addition to its 10 stores also operates four warehouses. Arch stocks some 50,000 parts, and is able to fill orders from inventory 95 percent of the time for customers in the Brooklyn, Queens and Nassau/Long Island area. Arch Auto Parts, a member of the Automotive Parts Service Group, operates 10 retail stores and four warehouses. Arch has been using the Epicor Ultimate suite for several years, but updated a number of other systems over the past year. The bulk of the IT changes were to customer-facing systems. Arch used to have individual phone servers with copper lines at each location, but president and CFO Tom Henner says the company wanted to be able to leverage the phone system across all locations. They invested in an Allworx VoIP solution hosted by Windstream over a multiprotocol labelswitching (MPLS) network. “That lets us move customer calls from one location to another,” Henner says. “If one store is closed we can forward calls to another location, and we can do things with call monitoring that we couldn’t do before.” WHAT ARE SOME KEY APPLICATIONS FOR 3D PRINTING IN THE AUTOMOTIVE AFTERMARKET? There are three areas where we see 3D printing taking root. One is in prototyping for quick iterations. It can also be used to create negatives and fixtures that can help you produce parts that you just designed. It can help with short-run production to generate some of those models. Anything you would use to build or fabricate or mock-up a model. Molds and die cut tools are expensive, and you don’t want to get it wrong. A third area that is just starting to take hold is in customization. There is an interest in things that are personalized. You can get the information and scale it to the ergonomics of a specific individual, change the way it forms and fits. You can do that with high-end modern vehicles or older vehicles where the original data and information have been lost. You can design and print something for a restoration. Q: What are the barriers to wider adoption? A: Automotive is a highly regulated market, which presents a high barrier to entry. You can’t just put anything you want on a vehicle. Things are a little more cavalier in the aftermarket, but the OEMs AftermarketBusiness.com ES681158_AMB1015_032.pgs 09.30.2015 01:51 ADV Visit us at AAPEX ARCH AUTO PARTS REMODELED ITS STORES TO BE MORE CONSUMER-FRIENDLY, AND ALSO DEPLOYED THE NEW PHONE SYSTEM, A NEW POINT OF SALE (POS) SOLUTION, NEW IT NETWORK INFRASTRUCTURE, AND A GPS-ENABLED DISPATCH AND DELIVERY SYSTEM. don’t want to move away from technology and materials they are familiar with. Q: Do you see companies producing on-demand replacement parts this way? A: That’s the benefit of 3D printing, that ability to not have hard assets. You don’t have to create a tool or a mold. You don’t have inventory. If you don’t want to hold all of that inventory for a particular car, you release the models. You just transfer data. Q: So how do companies using that model generate revenue? A: That’s something we talk about quite a bit. Companies want to hold on to their designs. But the ancillary benefit is that by releasing that to other people, you don’t have to keep inventory. You can release that from the books. There’s a hesitation to be the first company to open up. We’re seeing more movement on the customization side. Automotive is slow to move that way, but we see consumer products moving faster in that direction. Arch Auto serves a significant Spanish-speaking population, so customers can call in and be connected with specific countermen that can help them. Customers can also dial direct extensions to talk to their preferred countermen. If a connection goes down, calls can be redirected to another part of the network. There is also a separate, highcapacity network with more latency that is used for monitoring the stores with networked video cameras. Arch also installed networked cash registers so that activity could be pulled, balanced and reconciled more efficiently. “From a control standpoint that lets us know at the end of the day all the transactions that went through the cash registers,” Tom Henner says. The company also is using a Bank of America cash management solution that lets staff feed bills into smart safes that count and sort the bills, and then automatically credits Arch’s accounts. The company also has check scanners installed so that checks can automatically be deposited from the stores. TWO GREAT BRANDS Booth #2621 INTRODUCING GPS-based delivery management Arch Auto Parts uses a network of some 75 or 80 drivers for deliveries throughout the city. Using a fleet tracking solution developed internally, the company can now track those drivers using their GPS-enabled phones. When a ticket gets printed and merchandise is pulled for the delivery, the dispatch manager scans the ticket. That scan pulls all of the customer location information from Epicor. The deliveries are associated with the driver assigned to those stops. When the driver approaches each delivery site, the system notes that the delivery is imminent. If a shop calls about a delivery, dispatchers can see exactly where the driver is, and if there is an extra pick-up or delivery, managers also can find the nearest driver. “We’re open longer hours than most drivers would be working and our drivers use their own cars, so this lets us know where they are,” Tom Henner says. The store remodeling effort is ongoing (not all locations have been converted yet), but Tom Henner says that the investment in new technology has paid off. It’s been especially valuable as the company expands. “We feel like we have a good, stable and modular platform now,” Tom Henner says. “That’s been a key advantage for us, and we can add stores without taking a lot of time to get thing up and running. The system needed to be replicable, so we have a nice set of checklists and processes that we can add from a technical standpoint. We can add new locations without having to reinvent the wheel.” Readymount¨ and Struts Over 250 SKUÕs available Plus - NEW Answerman Advantage Rewards Program INTRODUCING All New Premium Brake Program PLUS - NEW Interactive website with new catalog features SEARC HAUTO PARTS .C O M 3 3 magenta cyan yellow black ES681108_AMB1015_033.pgs 09.30.2015 01:47 ADV STAY ON TOP OF INDUSTRY DEVELOPMENTS. Sign up today for FREE SUBSCRIPTIONS to TRENDING Distribution E-News & Alerts Aftermarket Technology E-News Aftermarket Business E-Zine DISTRIBUTION NEWS, NOTES AND HAPPENINGS AFTERMARKETBUSINESS.COM/SUBSCRIBE COVERSTORY MOST CONSUMERS COMPARE PRICES WHEN BUYING AUTO PARTS, BUT LOWEST PRICE DOESN’T ALWAYS WIN BY BRUCE ADAMS | MANAGING EDITOR 34 OCTOBER 2015 magenta cyan yellow black particular auto part. Other frequently picked reasons for buying a particular part were brand name, performance claim/ warranty, coupon/rebate and in-store display/packaging. Consumers consistently agreed that their likelihood to repurchase a product would be based on the performance they received from that product. Some 80 percent to 90 percent of consumers said they would be “highly likely” or “likely” to repurchase a product based on its performance. Methodology: The survey sampling for the 2015 Aftermarket Business World Consumer Attitude Study consisted of a consumer-sampling panel via email. Of the 20,296 invitations sent, 1,585 responses were received for a response of 7.8 percent and a +/- 2.1 percent margin of error at the 95 percent confidence level. CONTENTS Photo: Thinkstock WHILE the majority of consumers say they compare prices before buying an auto part, they are not always motivated to buy the lowest priced product, according to the Aftermarket Business World Consumer Attitude Study. Approximately three out of four consumers said they compare prices when shopping for auto products, the survey indicated. Interestingly, starters and alternators was the only product category that fewer than 50 percent of respondents said they compare prices on before buying. Only 43 percent of consumers surveyed said they compared prices on starters and alternators, by far the lowest percentage of any product in the survey. That’s likely due to the fact that 30 percent of consumers said they bought that product when their car wouldn’t start, which doesn’t allow much time for price shopping. When consumers were asked the top five reasons for purchasing a particular product, lowest price was rarely picked as the most important reason, although it often was among one of the top three reasons. Lowest price garnered the most responses only in two categories – batteries and wiper blades. Recommendation was most often picked (in 10 out of 12 product categories) as one of the top five reasons for buying a 36 38 40 42 44 46 Auxiliary Lighting Batteries Battery Chargers Brakes Chassis Gaskets 48 50 52 54 56 58 Shocks & Struts Spark Plugs Starters & Alternators Water Pumps Wheel Bearings Wiper Blades AftermarketBusiness.com ES681101_AMB1015_034.pgs 09.30.2015 01:46 ADV NOW YOU CAN TAKE IT WITH YOU ALL OF THE VALUABLE INFORMATION YOU’VE COME TO DEPEND ON FROM - FORMATTED FOR YOUR MOBILE DEVICE! AWARDWINNINGD NEWS ANIS ANALYS BUSINESS RESEARCH AND FORECASTING PLUS SO MUCH MORE! MOBILE INFO FOR AUTO PROS! magenta cyan yellow black GETTY IMAGES/ISTOCKPHOTO TECHNICAL TRAINING AND MEDIA VISIT WWW.AFTERMARKETBUSINESSWORLD.COM FROM YOUR MOBILE DEVICE. IT’S THAT EASY TO TAKE YOUR FAVORITE INDUSTRY CONTENT ON THE ROAD! ES674132_AMB1015_035_FP.pgs 09.17.2015 20:45 ADV STUDY CONSUMER ATTITUDE STUDY AUXILIARY LIGHTING Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of auxiliary lighting: 58% of consumers Brand name Performance claim/warranty Recommendation Lowest price In-store display/packaging personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 40% 30% 25% 2% 0% 3% Likelihood of returning to purchase location: 19% 20% 23% 17% 17% Likelihood to repurchase product based on performance: Primary purchase intent: To upgrade lighting 35% Replace damaged lighting 57% For a custom application 7% Other 1% Highly likely 61% Likely 27% Somewhat likely 8% Somewhat unlikely/not at all likely 4% Vehicle age: The top five advertising channels: Saw/heard no ads 7% < 1 year 7% Television 34% 2-5 years 37% Newspaper 14% 6-9 years 24% Direct mail 21% 10+ years 32% Magazine 18% Other work done: ◾ Highly likely 55% ◾ Likely 24% ◾ Somewhat likely 17% ◾ Somewhat unlikely 0% ◾ Not at all likely 4% Primary purchase location: Auto chain 43% Discount store 15% Independent auto store 10% Independent repair shop 12% Dealership 76% of consumers compared prices when shopping for this product. 8% *Includes DIY and DIFM purchases None 24% Oil change 51% Collision/body repair 18% Other 3% Tire rotation/replacement 24% Tune-up 24% Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 36 OCTOBER 2015 magenta cyan yellow black AftermarketBusiness.com ES681043_AMB1015_036.pgs 09.30.2015 01:43 ADV Upgrade their style, inside & out. Upgrade your customer’s vehicle lighting with Philips Vision LED Bulbs. Our revolutionary new LED lighting technology delivers brilliant, 6000K light and a unique, new high-tech style for interior and exterior lighting applications. Plus, thanks to Vision LED’s 12+ years lifetime, once they put them in, they’ll likely never have to replace them again. To learn more, visit www.philips.com/visionled Visit us at AAPEX Booth 2826 magenta cyan yellow black ES682526_AMB1015_037_FP.pgs 10.01.2015 00:49 ADV STUDY CONSUMER ATTITUDE STUDY BATTERIES Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of battery: 40% of consumers Brand name Performance claim Recommendation Lowest price In-store display/packaging personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 34% 32% 26% 2% 0% 6% Likelihood of returning to purchase location: 20% 21% 21% 22% 6% Likelihood to repurchase product based on performance: Primary purchase intent: Battery was dead 60% Weakened performance 22% Reached designated lifecycle 12% Mechanic recommended Highly likely 55% Likely 32% Somewhat likely 12% Somewhat unlikely/not at all likely 1% 6% Vehicle age: The top five advertising channels: < 1 year 5% 24% 2-5 years 24% Newspaper 16% 6-9 years 41% Direct mail 18% 10+ years 31% Internet/email 45% Saw/heard no ads 15% Television Other work done: ◾ Highly likely 48% ◾ Likely 37% ◾ Somewhat likely 10% ◾ Somewhat unlikely 2% ◾ Not at all likely 3% 85% of consumers compared prices when shopping for this product. Primary purchase location: Auto chain 48% Discount store 65% Online/Internet 23% None 36% Oil change 47% Checked/filled fluids 26% Independent repair shop 8% Checked filters 30% Dealership 8% Checked tire pressure 25% Checked belts and hoses 17% *Includes DIY and DIFM purchases Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 38 OCTOBER 2015 magenta cyan yellow black AftermarketBusiness.com ES681044_AMB1015_038.pgs 09.30.2015 01:43 ADV magenta cyan yellow black ES682518_AMB1015_039_FP.pgs 10.01.2015 00:48 ADV STUDY CONSUMER ATTITUDE STUDY BATTERY CHARGERS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of battery charger: 53% of consumers personally used the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 42% 25% 29% 0% 0% 4% Likelihood of returning to purchase location: Brand name Performance claim Recommendation Lowest price In-store display/packaging 25% 15% 25% 15% 12% Primary purchase intent: Likelihood to repurchase product based on performance: To have in case battery runs low 19% Highly likely 60% Likely 24% Somewhat likely 15% Somewhat unlikely/not at all likely 1% Battery charge seemed low 29% Battery was dead 33% To improve performance 19% Vehicle age: The top five advertising channels: Saw/heard no ads 5% < 1 year 11% Television 30% 2-5 years 18% Newspaper 24% 6-9 years 56% Direct mail 24% 10+ years 16% Internet/email 31% Other work done: ◾ Highly likely 47% ◾ Likely 41% ◾ Somewhat likely 10% ◾ Somewhat unlikely 0% ◾ Not at all likely 2% 65% of consumers compared prices when shopping for this product. Primary purchase location: Auto chain 44% Discount store 21% None 23% Oil change 48% Checked/filled fluids 25% Independent auto store 5% Independent repair shop 7% Checked filters 30% Online/Internet 7% Checked tire pressure 25% Checked belts and hoses 11% *Includes DIY and DIFM purchases Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 40 OCTOBER 2015 magenta cyan yellow black AftermarketBusiness.com ES681042_AMB1015_040.pgs 09.30.2015 01:43 ADV 12V - 1 & 4 AMP Smart Battery Charger/Maintainer ($"$$$"' ' "&$#&"" (&"# %!" $$ !"##$$ ( "#$#$$"#" $ ! %"# (%#"#$ " ! $$$# #20060 STUDY CONSUMER ATTITUDE STUDY BRAKES Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of brake: 20% of consumers Brand name Performance claim Recommendation Lowest price Coupon/rebate personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 32% 37% 22% 2% 1% 6% Likelihood of returning to purchase location: 20% 17% 27% 25% 4% Likelihood to repurchase product based on performance: Primary purchase intent: Worn out brakes 35% Making noise 25% Mechanic recommended 21% Brake pedal pulsating/grinding 14% Highly likely 54% Likely 34% Somewhat likely 9% Somewhat unlikely/not at all likely 3% Vehicle age: The top five advertising channels: Radio 6% < 1 year 10% Television 12% 2-5 years 32% Newspaper 5% 6-9 years 22% Direct mail 10% 10+ years 37% Internet/email 20% Other work done: ◾ Highly likely 53% ◾ Likely 31% ◾ Somewhat likely 11% ◾ Somewhat unlikely 4% ◾ Not at all likely 1% Primary purchase location: None Auto chain Discount store 4% Independent auto store 9% Independent repair shop 15% Dealership 87% of consumers compared prices when shopping for this product. *Includes DIY and DIFM purchases 9% Steering/suspension 5% Shocks/struts 9% Transmission service 4% Tire rotation/replacement Other Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 42 OCTOBER 2015 AftermarketBusiness.com 20% 50% 15% 3% FOUR TIMES...THE BEST. THE PROFESSIONAL’S CHOICE. We are pleased to announce Wagner Brake is the only four-time winner recognized by the industry as the overall best brand of replacement brake pads.* INSTALL THE BEST TODAY! *Frost & Sullivan Replacement Brake Pads Product Leadership Award Winner ©2015 Federal-Mogul Motorparts Corporation. Wagner Brake Products is a trademark owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. STUDY CONSUMER ATTITUDE STUDY CHASSIS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of chassis part: 42% of consumers personally used the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 43% 26% 23% 2% 0% 6% Likelihood of returning to purchase location: Brand name Performance claim Recommendation Lowest price Coupon/rebate 20% 17% 24% 17% 9% Likelihood to repurchase product based on performance: Primary purchase intent: Heard noises under car 37% Mechanic’s recommendation 19% Loose steering 17% Damaged in accident 11% Highly likely 55% Likely 35% Somewhat likely 4% Somewhat unlikely/not at all likely 6% Vehicle age: The top five advertising channels: < 1 year 13% 31% 2-5 years 36% Newspaper 22% 6-9 years 20% Direct mail 20% 10+ years 31% Internet/email 27% Saw/heard no ads 11% Television Other work done: ◾ Highly likely 52% ◾ Likely 32% ◾ Somewhat likely 10% ◾ Somewhat unlikely 0% ◾ Not at all likely 6% 87% of consumers compared prices when shopping for this product. Primary purchase location: None 16% Alignment 44% Tires rotated/replaced 42% 10% Brakes 26% 12% Steering/suspension 16% Auto chain 37% Discount store 12% Online/Internet 10% Independent repair shop Dealership *Includes DIY and DIFM purchases Other Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 44 OCTOBER 2015 AftermarketBusiness.com 4% Precision axis and geometry points for precise alignment MOOG® CONTROL ARMS HAVE YOU COVERED. Pre-installed bushings and ball joints, where applicable COVERAGE With over 1800 control arms currently available, the ever-expanding range of MOOG® control arms provides you the performance and coverage to service a wider array of Asian, European and domestic vehicles. QUALITY MOOG® control arms are quality engineered to ensure all axis and geometry points are an OE match, providing ease of installation and precise alignment, saving you valuable time in the service bay. PERFORMANCE MOOG® control arms offer proven performance and are another reason why MOOG is the preferred brand of professional technicians and NASCAR® crew chiefs. Audi Ford Ram Cadillac Chevrolet Honda Toyota Dodge Hyundai Volkswagen moogproblemsolver.com ©2015 Federal-Mogul Motorparts Corporation. NASCAR is a registered trademark of NASCAR, Inc. MOOG is a trademark owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All other trademarks shown are the property of their respective owners. All rights reserved. Mercedes-Benz Volvo STUDY CONSUMER ATTITUDE STUDY GASKETS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of gasket: 30% of consumers Brand name Performance claim/warranty Recommendation Lowest price In-store display/packaging personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 33% 30% 27% 0% 3% 7% Likelihood of returning to purchase location: 26% 10% 39% 10% 13% Likelihood to repurchase product based on performance: Primary purchase intent: Mechanic recommended 52% Needed as part of larger repair 23% Stop fluid leak 19% Performance/custom work Highly likely 48% Likely 36% Somewhat likely 10% Somewhat unlikely/not at all likely 6% 6% Vehicle age: The top five advertising channels: < 1 year 16% 23% 2-5 years 39% Newspaper 23% 6-9 years 26% Direct mail 36% 10+ years 19% Radio 16% Internet 19% Television Other work done: ◾ Highly likely 44% ◾ Likely 43% ◾ Somewhat likely 10% ◾ Somewhat unlikely 0% ◾ Not at all likely 3% 77% of consumers compared prices when shopping for this product. Primary purchase location: None Auto chain 29% Discount store 13% Preventative maintenance/repair 52% Engine repair AftermarketBusiness.com 23% Independent auto store 3% Independent repair shop 19% Non-engine repair Dealership 16% Performance/customization 10% Check engine light diagnostics 13% *Includes DIY and DIFM purchases Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 46 OCTOBER 2015 32% 7% No matter what sealing challenge your customers face... Fe lp ro - O n l y.c o m ©2015 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. ® ONLY FEL-PRO has the coverage and quality they demand. Providing the latest applications and first-to-market sealing innovations that keep your customers satisified. With today’s advanced materials, gasket installation is “Clean and Dry.” Visit Felpro-Only.com/Blog to learn why. STUDY CONSUMER ATTITUDE STUDY SHOCKS & STRUTS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of shock & strut: 15% of consumers Brand name Performance claim Recommendation Lowest price Coupon/rebate personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 50% 43% 7% 0% 0% 0% Likelihood of returning to purchase location: 25% 14% 39% 7% 4% Likelihood to repurchase product based on performance: Primary purchase intent: Bouncy ride/worn parts 35% Poor vehicle handling 31% Shock/strut leak 21% Mechanic recommended Highly likely 48% Likely 35% Somewhat likely 10% Somewhat unlikely/not at all likely 7% 7% Vehicle age: The top five advertising channels: < 1 year 21% 38% 2-5 years 41% Newspaper 35% 6-9 years 10% Direct mail 17% 10+ years 28% Internet/email 35% Saw/heard no ads 14% Television Other work done: ◾ Highly likely 57% ◾ Likely 32% ◾ Somewhat likely 11% ◾ Somewhat unlikely 0% ◾ Not at all likely 0% 79% of consumers compared prices when shopping for this product. Primary purchase location: Auto chain None 28% Alignment 52% Tire rotation/replacement 35% 24% Discount store 7% Independent auto store 10% Independent repair shop 31% Suspension/steering 21% Dealership 10% Brakes 21% Other 0% *Includes DIY and DIFM purchases Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 48 OCTOBER 2015 AftermarketBusiness.com STUDY CONSUMER ATTITUDE STUDY SPARK PLUGS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of spark plug: 33% of consumers Brand name Performance claim Recommendation Lowest price In-store display/packaging personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 47% 30% 19% 2% 0% 2% Likelihood of returning to purchase location: 18% 21% 27% 7% 11% Primary purchase intent: Likelihood to repurchase product based on performance: Routine maintenance rec. by OEM 53% Highly likely 67% Likely 24% Somewhat likely 7% Somewhat unlikely/not at all likely 2% Fix check engine light 22% Improve fuel economy 13% Mechanic recommended 11% Vehicle age: The top five advertising channels: < 1 year 4% 24% 2-5 years 33% Radio 22% 6-9 years 14% Magazine 16% 10+ years 49% Internet/email 24% Saw/heard no ads 18% Television Other work done: ◾ Highly likely 65% ◾ Likely 21% ◾ Somewhat likely 14% ◾ Somewhat unlikely 0% ◾ Not at all likely 0% Primary purchase location: Auto chain 42% Discount store 22% Independent auto store 15% Independent repair shop 12% Dealership 67% of consumers compared prices when shopping for this product. *Includes DIY and DIFM purchases 2% None 47% Check engine light diagnostics 24% Battery check/replacement 29% Check fluids 29% Checked tire pressure 16% Checked belts and hoses 33% Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 50 OCTOBER 2015 AftermarketBusiness.com Champion® spark plugs are engineered to provide maximum power and sure starts, no matter what engine. Fire up your car, truck, boat, ATV and power equipment with Champion to deliver performance that powers you. www.AlwaysAChampion.com ©2015 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. STUDY CONSUMER ATTITUDE STUDY STARTERS & ALTERNATORS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of starter & alternator: 25% of consumers Brand name Performance claim Recommendation Lowest price Coupon/rebate personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 38% 25% 31% 0% 0% 6% Likelihood of returning to purchase location: 11% 16% 37% 16% 5% Likelihood to repurchase product based on performance: Primary purchase intent: Car wouldn’t start 30% Engine turned slowly 15% Alternator light on 15% Mechanic recommended 10% Highly likely 50% Likely 31% Somewhat likely 13% Somewhat unlikely/not at all likely 6% Vehicle age: The top five advertising channels: < 1 year 5% 19% 2-5 years 19% Newspaper 14% 6-9 years 29% Direct mail 16% 10+ years 48% Internet/email 29% Saw/heard no ads 19% Television Other work done: ◾ Highly likely 40% ◾ Likely 33% ◾ Somewhat likely 20% ◾ Somewhat unlikely 0% ◾ Not at all likely 7% Primary purchase location: Auto chain 43% 33% Battery check/replacement 38% Tune-up 24% Online/Internet 5% Independent auto store 5% Independent repair shop 29% Checked/filled fluids 10% 0% Checked tire pressure 14% Checked belts and hoses 14% Dealership of consumers compared prices when shopping for this product. None 33% *Includes DIY and DIFM purchases Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 52 OCTOBER 2015 AftermarketBusiness.com A smart ride starts with smooth performance. That’s why MPA hub assemblies undergo the industry’s most rigorous testing before they leave our factory. !! Extensive production capacity. Experienced technicians. Qualifi ed talent. Our reputation for delivering high-quality products and high-value relationships is clear. MPA is Street Smart — so every part is good to go, right out of the box. STUDY CONSUMER ATTITUDE STUDY WATER PUMPS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of water pump: 36% of consumers personally used the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 50% 30% 14% 2% 0% 4% Likelihood of returning to purchase location: Brand name Performance claim Recommendation Lowest price In-store display/packaging 14% 24% 24% 17% 8% Likelihood to repurchase product based on performance: Primary purchase intent: Water pump is leaking 43% Regular maintenance 33% W.P. belt needs replacement 18% W.P. pulleys were loose Highly likely 51% Likely 29% Somewhat likely 16% Somewhat unlikely/not at all likely 4% 4% Vehicle age: The top five advertising channels: < 1 year 6% 29% 2-5 years 39% Magazine 21% 6-9 years 17% Direct mail 25% 10+ years 39% Internet/email 31% Saw/heard no ads 19% Television Other work done: ◾ Highly likely 64% ◾ Likely 18% ◾ Somewhat likely 16% ◾ Somewhat unlikely 0% ◾ Not at all likely 2% Primary purchase location: Auto chain 50% Discount store 10% Independent auto store 13% Independent repair shop 6% Dealership 71% of consumers compared prices when shopping for this product. 10% *Includes DIY and DIFM purchases None 25% Thermostat repaired/replaced 27% Cooling system flush 31% Cooling system hose replaced 14% Checked other fluids 19% Replaced belts and hoses 15% Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 54 OCTOBER 2015 AftermarketBusiness.com STUDY CONSUMER ATTITUDE STUDY WHEEL BEARINGS Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of wheel bearing: 8% of consumers personally used the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 22% 25% 33% 8% 4% 8% Likelihood of returning to purchase location: Brand name Performance claim Recommendation Lowest price Coupon/rebate 21% 3% 31% 28% 14% Likelihood to repurchase product based on performance: Primary purchase intent: Rattle noise/performance issue 48% Mechanic recommended 28% Failure in related system 28% Other Highly likely 52% Likely 37% Somewhat likely 11% Somewhat unlikely/not at all likely 0% 0% Vehicle age: The top five advertising channels: < 1 year 14% 24% 2-5 years 31% Newspaper 24% 6-9 years 14% Direct mail 17% 10+ years 41% Internet/email 31% Saw/heard no ads 17% Television Other work done: ◾ Highly likely 55% ◾ Likely 29% ◾ Somewhat likely 12% ◾ Somewhat unlikely 0% ◾ Not at all likely 4% Primary purchase location: 79% 45% Alignment 45% Checked/filled fluids 17% 7% Check engine light diagnostics 24% 10% Tires checked, repaired/rotated 24% Checked belts and hoses 17% 24% Online/Internet 10% Independent auto store 35% Independent repair shop Dealership of consumers compared prices when shopping for this product. None Auto chain *Includes DIY and DIFM purchases Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 56 OCTOBER 2015 AftermarketBusiness.com At MPA innovation never rests. That’s why our starters and alternators undergo the industry’s most rigorous testing before they leave our factory. All units meet or exceed OE specs for performance and fit. Extensive production capacity. Experienced technicians. Qualified talent. Our reputation for delivering high-quality products and high-value relationships is clear. MPA is Street Smart — so every part is good to go, right out of the box. STUDY CONSUMER ATTITUDE STUDY WIPER BLADES Customer service at purchase location: BUYING HABITS The top five reasons for purchasing a particular type of wiper blade: 54% of consumers Brand name Performance claim Recommendation Lowest price Coupon/rebate personally installed the product they purchased. ◾ Outstanding ◾ Great ◾ Good ◾ Poor ◾ Terrible ◾ Didn’t receive 35% 34% 26% 1% 0% 4% Likelihood of returning to purchase location: 20% 18% 20% 23% 7% Likelihood to repurchase product based on performance: Primary purchase intent: Wipers performing poorly 53% Preventive maintenance 16% Broken wiper blades 19% Seasonal change 12% Highly likely 59% Likely 27% Somewhat likely 11% Somewhat unlikely/not at all likely 3% Vehicle age: The top five advertising channels: < 1 year 6% 25% 2-5 years 27% 9% 6-9 years 25% Direct mail 15% 10+ years 42% Internet/email 23% Saw/heard no ads 23% Television Radio Other work done: ◾ Highly likely 58% ◾ Likely 26% ◾ Somewhat likely 13% ◾ Somewhat unlikely 0% ◾ Not at all likely 3% 64% of consumers compared prices when shopping for this product. Primary purchase location: Auto chain 44% Discount store 23% None 53% Oil change 27% Checked/filled fluids 20% Independent auto store 7% Independent repair shop 7% Checked filters 13% Online/Internet 3% Checked tire pressure 15% Checked belts and hoses 11% *Includes DIY and DIFM purchases Some chart totals exceed 100 percent as a result of respondents providing multiple answers. Others do not reach 100 percent as all answer options are not represented. 58 OCTOBER 2015 AftermarketBusiness.com ONSITE. OnlinE. On-Demand. Garage Gurus is a new “Tech First” initiative from Federal-Mogul Motorparts that provides the most comprehensive program of support tools in the industry. Garage Gurus is committed to arming techs with the latest tools and information so they can keep pace with emerging vehicle technologies. Now open in: Skokie, IL Van Nuys, CA Bronx, NY St. Louis, MO Baltimore, MD Coming soon in: Atlanta, GA Dallas, TX Rancho Dominguez, CA Ft. Lauderdale, FL For class schedules and more details, visit FMgaragegurus.com Gurus Tech Hotline: 800-325-8886 Training Registration: 888-771-6005 ©2015 Federal-Mogul Motorparts Corporation. All trademarks shown are owned by Federal-Mogul Corporation, or one or more of its subsidiaries, in one or more countries. All rights reserved. PRODUCTS TOOLS, PARTS AND RESOURCES FOR EVERY SHOP EVERY DAY STOPTECH AXLE PACKS StopTech Axle Packs are pre-matched, direct-fit brake pad and rotor pairings designed to simplify brake service and brake system upgrades for virtually any car or truck on the road. They are the easiest way for drivers to replace their existing rotors and pads with carefully selected, application-specific components from the championship-winning team at StopTech. www.centricparts.com Centric Parts AAPEX booth #4011 | SEMA booth 23527 THE LATEST PRODUCTS TECHNOLOGIES TO HELP YOU WORK SMARTER AND KEEP YOUR BUSINESS PROFITABLE MPA WHEEL HUB/ BEARINGS STREET SMART All MPA hub assemblies undergo the industry’s most rigorous testing before they leave the factory. Tolerances on each unit are verified against OE Specifications for performance and fit. ABS sensor signal strength is tested to ensure proper functionality. High-grade steel and precision pre-loaded bearings are tested on proprietary equipment to detect indications of gap and play. MPA is Street Smart – assuring that every part is good to go, right out of the box. motorcarparts.com CENTRIC PARTS PREMIUM CHASSIS COMPONENTS From the undercar experts at Centric Parts, a complete premium chassis program that features a full line of steering and suspension components that follow OE design and add signature Centric Premium features like long-lasting e-coating corrosion protection. All Centric Premium chassis components are engineered to restore OE performance and are thoroughly tested to guarantee superior durability, fit and function. www.centricparts.com Centric Parts AAPEX booth 4011 | SEMA booth 23527 MPA MASTER CYLINDERS STREET SMART MPA offers a blended program of new and remanufactured Master Cylinders. New units undergo intensive quality control against OE specifications for tolerances, performance and durability. Remanufactured units are tested to exacting tolerances before, during and after assembly, all performed by skilled engineers in our Torrance Headquarters. MPA is Street Smart – assuring that every part is good to go, right out of the box. MPA AAPEX booth 4638 SKF X-TRACKER HUB BEARING UNIT SKF’s X-Tracker hub bearing unit provides precision handling and braking characteristics, ultimately delivering improved handling and comfort. A unique double row angular contact ball bearing arrangement (with the outboard row at a higher diameter and containing more balls than the inner row) increases the bearing’s capacity while improving hub stiffness by 50% over a traditional tapered bearing unit. www.skf.com SKF AAPEX booth 4619 SKF X-TRACKER HYBRID HUB BEARING The SKF X-Tracker Hybrid hub bearing unit is designed to provide increased performance to pickup truck and SUV applications. Combining the strengths of the ball and tapered roller hub units, the hybrid hub bearing unit offers less rotor and flange deflection which helps withstand harsh off-road environments. motorcarparts.com www.skf.com MPA AAPEX booth 4638 SKF AAPEX booth 4619 60 OCTOBER 2015 AftermarketBusiness.com There’s a lot riding on the safety of your lift. Protect your technicians, your customers and your ďƵƐŝŶĞƐƐ,ĂǀĞĂůůLJŽƵƌůŝŌƐŝŶƐƉĞĐƚĞĚĂŶŶƵĂůůLJďLJ ĂŶ>/ĞƌƟĮĞĚ>ŝŌ/ŶƐƉĞĐƚŽƌ ŽŶƚƚƌƵƐƚLJŽƵƌůŝŌƐĂĨĞƚLJƚŽũƵƐƚĂŶLJŽŶĞ>/ĞƌƟĮĞĚ>ŝŌ/ŶƐƉĞĐƚŽƌƐĂƌĞƉƌŽǀĞŶƋƵĂůŝĮĞĚ ƚŽŝŶƐƉĞĐƚĞǀĞƌLJůŝŌŝŶLJŽƵƌƐĞƌǀŝĐĞĚĞƉĂƌƚŵĞŶƚƚŽĚĞƚĞƌŵŝŶĞŝĨƚŚĞLJĂƌĞĨƵŶĐƟŽŶŝŶŐƉƌŽƉĞƌůLJ ŶŶƵĂůůŝŌŝŶƐƉĞĐƟŽŶƐĂƌĞƌĞƋƵŝƌĞĚďLJŚĞĂůƚŚΘƐĂĨĞƚLJŽĸĐŝĂůƐ"E^/ƐƚĂŶĚĂƌĚƐĂŶĚůŽĐĂů ƌĞŐƵůĂƟŽŶƐƵƚĞǀĞŶŵŽƌĞŝŵƉŽƌƚĂŶƚůLJ%ƚĂŬŝŶŐĐĂƌĞŽĨLJŽƵƌůŝŌƐŵĞĂŶƐƚĂŬŝŶŐĐĂƌĞŽĨ LJŽƵƌƚĞĂŵdŚĞŝƌƐĂĨĞƚLJŝƐƌŝĚŝŶŐŽŶŝƚ dŽĮŶĚĂŶ>/ĞƌƟĮĞĚ>ŝŌ/ŶƐƉĞĐƚŽƌŝŶLJŽƵƌ ĂƌĞĂ"ǀŝƐŝƚǁǁǁĂƵƚŽůŝŌŽƌŐŝŶƐƉĞĐƟŽŶ /ŶƐƉĞĐƚƚŽWƌŽƚĞĐƚΡ Your business is riding on it™ FASTER, MORE ACCURATE AND EASIER THAN ANY OTHER LATHE IN IT’S CLASS We hear it all the time: what’s your brake lathe got that the other guys don’t? But maybe a better question would be, what’s missing? When we built the Ranger RL-8500 and RL-8500XLT heavy-duty brake lathes we ripped out the clunky gear box, variable-speed transmission, and any sense of fear. Then we replaced all that with fierce independence—two independent DC servo motors to be exact. Now they control the cross and spindle feed drives to give you a betterthan-factory smooth finish every time. While those other brake lathes are trembling on their stands over a less-than-perfect drum, rotor, or flywheel, the RL-8500 models have got you covered with solid nerves of steel. And who doesn’t love that kind of confidence? SEE THE ULTIMATE NICKEL TEST WATCH IT ON YOUTUBE .0%&-3- MRP $5545 *FREE SHIPPING Quality products backed by our Certified ServiceSM program and a customer care initiative designed to meet all of your support needs such as on-site repair and service regardless of location. *Free shipping on all BendPak Products to the 48 contiguous states. ¥3BOHFS1SPEVDUTr#FOE1BL*ODBOE3BOHFS1SPEVDUTBSFSFHJTUFSFEUSBEFNBSLT 1645 Lemonwood Drive 4BOUB1BVMB$"t XXXSBOHFSQSPEVDUTDPN9-5 search-autoparts.com SEARCH COMPANIES CATEGORY: t $PMMJTJPO3FQBJS t " DDFTTPSJFT4BGFUZ 4FDVSJUZ t $IFNJDBMT SPECIALTY PARTS SHOP EQUIPMENT REPLACEMENT PARTS BUSINESS SYSTEMS t -JHIUJOH4ZTUFN t 3FNBOVGBDUVSFE t 3FCVJMU1SPEVDUT t 5PPMT)BOE1PXFS 4FSWJDF&RVJQNFOU t 8FMEJOH t )FBUJOHBOE$PPMJOH4FSWJDF t 3FNBOVGBDUVSFE 3FCVJMU1SPEVDUT UPKEEP/ MAINTENANCE SHOP MATERIALS VEHICLE STYLING t $PMMJTJPO3FQBJS1BSUT t "DDFTTPSJFT t 7BO-JHIU5SVDL4671BSUT t -JHIUJOH4ZTUFN t "EWFSUJTJOH t .BSLFUJOH4FSWJDFT t &DPNNFSDF t *OGPSNBUJPO4ZTUFNT t *OUFSOFU t "EIFTJWFT t $IFNJDBMT PAINT & REFINISH t 4FSWJDF4VQQMJFT ESALESCOUNTER BI/CRM What counterperson doesn’t want to be a better salesperson, achieve sales goals, increase profitability, and increase customer loyalty by using the CRM tools to establish better personal relationships? Autologue’s Business Intelligence software is custom-designed technology that is guaranteed to increase sales and customer retention. https://youtu.be/rqi-wPXDxUs ESALES BI GIVES SALESPEOPLE A POWERFUL TOOL CONTINENTAL OFFERS VDO BLOWER MOTORS FOR HVAC SYSTEMS ON LATE MODEL COMMERCIAL VANS Autologue AAPEX booth 3071 JIFFY-TITE ANNOUNCES FLUID CONNECTION AFTERMARKET PRODUCT LINE Jiffy-tite introduced an aftermarket line featuring 41 part numbers, as well as caps, plugs and bus kits. With over 450 million automotive quick-connect fluid fittings in service worldwide, Jiffy-tite’s products are known for their proven technology and proven performance. Chances are when repairing an automatic transmission, radiator or auxiliary cooler, the OE used Jiffy-tite fluid fittings. jiffy-tite.com Jiffy-tite AAPEX booth 5307 OFF-ROAD t "CSBTJWFT$MFBOFST t "JS'JMUFST t NPSF Dayco announced the availability of serpentine belt kits in North America, marketed and sold as Dayco Demanding Drive Kits. Designed for the replacement of worn or damaged serpentine belts, tensioners and pulleys, the kits are a convenient solution when replacing all of the major components in the accessory drive system. daycoproducts.com https://youtu.be/W3OhHubqNiI t 5SBEF"TTPDJBUJPOT DAYCO LAUNCHES SERPENTINE BELT KITS IN NORTH AMERICA Autologue AAPEX booth 3071 Autologue offers the most complete Business Intelligence, CRM Tool on your tablet or smartphone in the market today. It delivers reliable, relevant info to the right people at the right time with the goal of making better business decisions faster. View sales trends, alerts, opportunities with scheduler, and stock orders with real time direct connection to your management system. Access CRM personal & business info to better build customer retention. ORGANIZATIONS/ ASSOCIATIONS Dayco Continental Commercial Vehicles & Aftermarket, a supplier of OE-engineered aftermarket parts for HVAC and engine cooling, door systems, brake systems, tire pressure monitoring systems, engine management, fuel systems and instrumentation, now offers a comprehensive line of VDO blower motors for direct replacement on modern utility vans. Continental is a supplier to all the major OE van manufacturers and is able to bring its state-of-the-art manufacturing experience to the automotive service market with the VDO brand. www.vdo.com/usa Continental Commercial Vehicles & Aftermarket GATES NEW HYBRID POLYMER WATER HOSE & WHIP AIR HOSE Gates introduces Water Hose and Whip Air Hose that won’t kink or curl – designed to make jobs easier. The hybrid polymer water hose has heavy-duty nickel-plated fittings and spring guard and comes in multiple sizes. The whip air hose will reduce wear and tear to help prolong air hose life and is also available in different lengths. www.gates.com Gates Corporation S E A R C H AU TO PA R T S .C O M 6 3 MARKETPLACE MANUFACTURERS REPRESENTATIVES FOR IMMEDIATE ASSISTANCE IN PLACING YOUR MARKETPLACE AD, PLEASE CALL Keith Havemann at: 310-857-7634. Send a fax: 310-943-1465 or e-mail: [email protected] AFTERMARKETBUSINESS.COM/SUBSCRIBE SOUTH Let Marketplace Advertising N.A. Williams Company has been providing sales and marketing solutions for its clients for over 80 years. 115 aftermarket professionals. 2900-A Paces Ferry Rd., S.E., Atlanta, GA. 30339 770-433-2282 www.nawilliams.com THE MEDIA LEADER FOR THE AUTOMOTIVE AFTERMARKET CONTINUES TO REINVEST IN OUR PRODUCTS. NEW DESIGNS, LAYOUTS AND PRINT-DIGITAL SYNERGY FOR THE MOST COMPREHENSIVE AND ENGAGING CONTENT IN THE INDUSTRY! GO TO SEARCHAUTOPARTS.COM TO SEE WHAT WE’VE SEARCHAUTOPARTS.COM TO SEE WHAT WE’VE GOT IN STORE FO GOT IN STORE FOR YOU! 64 OCTOBER 2015 AftermarketBusiness.com Work For YOU! Generate sales leads, maintain market presence, conduct market testing, promote existing lines, introduce new products and services, or recruit the best. Contact Keith Havemann 310-857-7634 or email [email protected] MARKETPLACE MANUFACTURERS REPRESENTATIVES SOUTH The GLOB AL Resource for the Automotive Aftermarket ific information Get industry-spec expand to help you build andRY MONTH! EVE your business – R E S O U R C E S BUJPOBM*OEVTUSZ/FXT t%PNFTUJD*OUFSO U&WFOUT t(MPCBM"GUFSNBSLF FBSDI4UVEJFT t*O%FQUI.POUIMZ3FT F t*NQPSU&YQPSU(VJE UBSZGSPN*OEVTUSZ t0QJOJPOT$PNNFO FJEFS &YQFSUTMJLF.JUDI4DIO www.tascosalesreps.com www.twitter.com/TASCOSALESREPS www.facebook.com/Tascosalesrepscom e NOW ON iPhon Photo: Getty Images / Ian McKinnell (Globe) from Download FREEStore the Apple App or iPad. Content Licensing for Every Marketing Strategy Marketing solutions fit for: Outdoor | Direct Mail | Print Advertising | Tradeshow/POP Displays | Social Media | Radio & TV Leverage branded content from Aftermarket Business (E-Zine) to create a more powerful and sophisticated statement about your product, service, or company in your next marketing campaign. Contact Wright’s Media to find out more about how we can customize your acknowledgements and recognitions to enhance your marketing strategies. For information, call Wright’s Media at 877.652.5295 or visit our website at www.wrightsmedia.com SEARC HAUTO PARTS .C O M CV3 PROVEN *OIPVTFSFTFBSDIBOEFOHJOFFSJOHUFBNNPTUFYUFOTJWFMBCBOEàFMEUFTUJOH Tier 1 OEM supplier QUALITY OE style design, premium materials and the most advanced manufacturing processes COMPREHENSIVE $PNQMFUFSBOHFPGTUBOEBSEQSFNJVNáFFUNFEJVNEVUZQFSGPSNBODFBOESBDJOH components and systems for virtually every 1937 through 2015 vehicle on the road SUPPORT Award-winning catalogs, customer service, technical support and extensive online help at centricparts.com Our strict standards and attention to detail have made Centric Parts and its products consistent award winners – and clear favorites among our distribution partners and technicians who count on quality parts that exceed customer expectations. From Lab to Lift, Centric Parts Delivers. AAPEX Booth #4011 SEMA Booth #23527 www.centricparts.com (626) 961-5775