As we always do for each issue, Autosphere contacted two jobbers to get their outlook on the questions we asked concerning business today at their stores.
This time, we contacted Rob Hollinger at Ideal Supply in Listowel, Ontario and Ian Creaser from Lunenburg Auto & Sporting Supplies Co. Ltd. in Lunenburg, Nova Scotia. We sent questions to them, and they supplied the answers. Here’s what we concentrated on this month.
What are your bestselling parts and what do you think is driving that was the topic. The first question was “What items that you currently stock are proving the biggest sellers in terms of volume?”
Rob Hollinger stated, “Brakes are easily the largest product group that we stock, and it is still the largest sales volume we have. Over the last few years there has been a need for various “qualities” of brakes so that in turn has meant we need to stock the good, better, best lines for many applications.”
Ian Creaser told us, “Here in Nova Scotia our best-selling parts are related to Brake Service. From brake pads/ friction to rotors and calipers, this category is our most popular.
“Although this category is popular with most jobbers, what is driving this category is our Maritime climate. With our winters and weather conditions, corrosion helps drive sales in this market. We discuss with our ASP to sell brake service lubrication in the fall tire season and spring brake lubrication to extend brake service.”
Which items are proving to be the most profitable for your store?
Ian: “Customers who do not take the advice stated above need the usual brake job consisting of brake pads, rotors and calipers. We have also seen an increase in brake hose sales with the inclusion of steel lines incorporated into brake hose design.”
Rob: “In terms of most dollars, brakes again would be the leader, however in terms of margin percentage, chemicals would now lead the way.”
What is the correlation between best seller and most profitable?
Rob: “For years, brakes would have led both these categories, but with some of the larger players becoming much more aggressive, it has forced the margin down on this product group.”
How does this demand impact operations at your store?
Ian: “The vehicle age demographic in our market has driven sales with a slightly older vehicle registration and people keeping their cars longer. With extended financing terms at 72 plus months, we are seeing these cars at their prime brake service age as customers put the investment back into premium brake parts and service.”
Rob: “At Ideal we have always tried to meet the customers’ demands and brakes are one of the toughest ones to work with. It’s usually not something most shops order in advance (although more progressive shops do) meaning when it’s needed, they usually mean now. This demand can then put a strain on your “shotgun” delivery service, especially at certain times of the day.”
Are there any trends you’re seeing related to current and future demand of specific parts/products?
Rob: “Although we haven’t seen it yet, we expect that chassis/electrical components demands will become more commonplace. However, it’s my belief that maybe 5-10 years down the road.”
What do you feel is essential to strong, long-lasting customer relationships
Ian: “Creating and cultivating customer relationships, that last through good times and bad. I strongly believe that you cannot take your customers for granted. Meeting your customers’ needs in technical and business training and listening to their daily needs is important to developing trust and bonds. Talking about market conditions with what we see as jobbers on a local level and national trends to keep them up to date.”
Rob: “It seems obvious but building a trust level with our customers would be the key to building any customer relationships. Having them know that we have their back through any situation would be the starting block and then continue to support them however we can, builds that partnership.”
How has the changing economic climate and market conditions impacted relationships with your customers?
Rob: “Many shops are trying to stay as profitable as possible and unfortunately many are looking to save money on their parts, as a way to do that. This leads to many opportunities in trying to educate shops as to comparable product, as well as other ways for them to maintain profit levels.”
Ian: “Developing policy and conditions that make the lines of communication in the business relationship easy to understand with returns/warranty and ordering, and make changes that work for both parties.”
How can jobbers help ensure they consistently provide superior products and services, no matter outside market conditions including supply chain disruptions, price volatility, consumer sentiment etc.?
Rob: “All of us try to supply our customers with the product they are looking for in a timely manner, regardless of the outside pressures. To do this, we have had to increase our inventories substantially over the last few years in both depth (to help navigate product disruptions) and in width (to supply a variety of product qualities).”
Ian: “Acknowledge your customers that support your buying programs with rewards and purchase discounts that they earn.
“One of our biggest assets is our workforce, who have contact with all our customers and keep those customers happy with their knowledge and daily support. We have good people working for our business and they are our strength.”
Hopefully this article has helped other jobbers in some way. If you would like to be contacted for this jobber article, and get your particular advice in, please send me your contact info and your business name. Email [email protected].