Business Partners Membership Has Its Rewards

When asked to describe the value of associate programs, many jobbers refer to their access to products, better pricing and some new signage — but, with apologies to American Express, membership has other rewards.

That is, as long as you’re willing to embrace them.

“[Jobbers] have to make sure they get on board with the entire image, whether it’s us or NAPA or a Carquest store,” insists Erik Ferland, marketing director of Uni-Select. “Signage, trucks, interior store layout, accessories and clothing–it goes from the business cards to the way you present your business to the way you answer the phone.

Referring to the importance of being associated with an identifiable brand, he says, “Winners want to deal with winners. [And] if they don’t want to get on board with all the programs, they’re losing a big competitive advantage.”

“The biggest challenge is really convincing an owner or operator that when you have a consistent approach, it shows up on the bottom line,” says Ferland. “We can validate that. The stores at the top of the heap are the stores that offer the programs to the best of their ability.”

“For us, the brand is your promise to your customer on what you’re delivering. When you have more than one outlet, you want to make sure you have a consistent approach,” says Andrea Ongaro, vice-president of marketing and communications for Canadian Tire’s PartSource franchises.

Indeed, today’s associate programs and their banner counterparts offer much more than products. They provide the tools of business.

Bob Bobert, general manager of Base Automotive, a member of the Aftermarket Auto Parts Alliance Auto Value distribution network, suggests a program’s greatest value comes in the form of tools that a jobber would not otherwise have the manpower or financial resources to support. Marketing flyers, for example, have been a foundation of these programs as long as they’ve existed, offering a professional-looking message that can be included in statements or added to the arsenal carried by sales teams.

Ferland says that NAPA members order six to seven times more flyers than those associated with Uni-Select, and that the strategic use of this marketing collateral can have a significant impact on sales.

Why, then, are they not always used?

Bestbuy’s Marc Alary suggests that reluctance to use marketing material can often involve a store’s product mix. Jobbers may think that a flyer supporting one line may give customers the impression that they don’t order parts from any other source.

But even though the success of an individual flyer will depend on everything from its product mix to the needs of a specific buyer, every document helps enforce customer loyalty, Bobert insists.

“Because his name is in front of his customers, I think it solidifies that bond between the jobber and his installer account.”

TRAINING PROGRAMS

Building awareness is not the only way that associate and banner programs can shape minds. Most offer some form of training, whether it’s in the form of a seminar offered by a supplier or an educational program delivered exclusively to members.

Annual meetings or trade shows offer another way to inform jobbers about everything from products to sales strategies. Base Automotive, for example, unveils its annual marketing strategy at an associate meeting. Vendors are also given the opportunity to showcase their wares–and that can be particularly important at a time when jobbers are seeing fewer sales representatives because of shrinking sales forces, Bobert says.

With the advent of e-learning tools, some training can even be offered without any travel costs or time away from the shop.

“The Alliance has the online Alliance University, and every associate employee can get a user name and password and access this and take courses online, and physically take the test online,” Bobert cites as an example. Yet as simply as this can be accessed, fewer than one in four members actually take advantage of the service.

“These guys are putting in long hours, and to spend time on training, it’s difficult,” he says. But the information will help the businesses remain competitive.

The availability of other online tools also continues to expand. Programs such as NAPA’s Prolink lets shops order parts in an online environment, while AutoSense is launching a website in mid-October that will include technical information, a customer relations management tool, and electronic ads.

Many advantages can be passed from jobber to installer as well, and they can all help solidify business relationships.

“In the major programs that we do, we tend to have strong participation,” Bestbuy’s Alary says, suggesting that a program is a success if more than 70% participate. “At the shop level, it’s a whole different story. Then the beliefs of the jobber come into play.”

“If they don’t want to get on board with all the programs and they don’t want to sign people, they’re losing a big advantage,” Ferland adds. “At the end, the installer is not just looking for price. They want service. They want programs that help bring their businesses to a new level.

“They’re looking for specials, but what’s more important for the installer is getting support with the warranty, getting the part at the right price.”

Otherwise, they might choose one of the other five to six jobbers in a given area.

“We also supply our members with a lot of soft supplies, like a credit card that gives discounts on fuel, a program with Grand and Toy, and Canadian Linen for installer uniforms,” says AutoSense sales and marketing manager Eric St. Peters, referring to other business tools that can be offered. “Providing these as a pass-through to the installer without making margin, helps create the loyalty.

“It’s a one-stop shop. If you can get parts, training and technical support, and all of your soft goods from one source of supply, you pick up the phone and call one person.”

Several incentive programs have also been introduced to encourage counter staff to sell specific products. Alary, however, suggests that interest in point-related programs has waned.

“A lot of customers are saying, ‘Reward me with cash instead of the points,’” he says.

ADDED PARTNERS

In the end, one program may not be enough to meet the needs of specific markets.

Pascal Litscher, president of Altrom, suggests many associate programs still fall short when serving the import community, which is his company’s specialty.

“The import market requires fit, form and function, and it’s not available from the traditional business,” he says. “The North American program is incomplete in terms of coverage, and the pricing is totally not geared to dealers.”

He suggests that’s one of the reasons that car dealerships are gaining a larger share of the import parts market. Pushing back this encroachment requires change on the part of the jobber, he says.

“If they come on board with what we have to offer, they have to accept that they have to change things with the way they approach the market. The guys who repair import cars, they expect a certain range of product,” Litscher says.

But recognizing the dominance of associate and banner programs in today’s market, Altrom has been actively seeking alliances, building on the individual stores that it serves, including many who are flying the traditional banners.

REGULAR REMINDERS

Whatever sign is on the wall, regular reminders seem to be crucial to the success of any associate or banner program.

“We all have the programs; they just have different names,” Ferland says. “Nobody has a real clear advantage over the other. As far as content is concerned, we’re pretty much all equal, but some of them do a better job communicating.”

“There’s so many times in the field, I’ll get a question from a jobber saying, ‘Why don’t you guys do this?’” Bobert adds, echoing a concern mentioned by most program representatives. “Well, did you get the last mailing from us? [He checks and] there’s a foot of unopened envelopes that he’s never bothered to look at.

“They run by the seat of their pants, and a lot of times the store owner is actually working the counter as opposed to managing the business, so things fall through the cracks,” he says.

“We deal with independent jobbers, and independent jobbers make independent decisions. In some cases we fall into their plan, and sometimes we don’t,” says Bestbuy’s Alary. “We’re not there to enforce the program. We’re there to communicate the program.

“It’s up to the distributor to communicate more effectively with its jobbers.”

Considering the benefits that can flow from that communication, it is a wonder that more jobbers don’t put those benefits at the top of the priority list.

If the experience of those who manage their program’s benefits well is anything to judge by, staying on top of an associate program’s benefits should be judged at least as important as on-hand inventory.

And, just like inventory, you can’t go it alone; the right partnerships are required for business success.