Jobber Survey
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Jobbers are a diverse group of individuals with differing takes on most major business matters. However, a totally unscientific survey, and many phone conversations with store owners and managers across the country, found that they do seem to have remarkably similar reactions and responses in terms of what they value, and what they find lacking in their associate programs. Crossing corporate lines and regional affiliations, the responses seem to indicate that despite differing business models we’re still in a broadly similar, albeit highly customized boat.
Buying Power
The group purchasing mentality remains, without a doubt, the number one reason otherwise independent jobbers align themselves with an associate program. Often fiercely entrepreneurial, many jobbers simply find the buying power of larger groups too good a deal to ignore, let alone compete with. Kevin Terrio, a relatively new owner of Crescent Auto and Supplies in Sackville, New Brunswick (a Uni-Select member), says that throughout his time in the store, the purchasing side of the program has been by far its greatest attribute. “I’ve only owned the business for a short time, but I think that our collective buying power and the discounts we receive are the most helpful parts of the program,” he says.
Other jobbers feel as though their parts ordering advantages include price, but aren’t limited to just the dollars and cents. Gerald Froese, manager of the Piston Ring location in Altona, Manitoba, says it’s both his part cost and access that he finds most helpful. “We see a big competitive advantage in terms of overall buying power, but we also find that we have much greater access to parts, and more and more hard-to-find parts are available to us,” he says. “Also, there is just a lot more part and technical support that comes with them.”
Branding and Marketing Programs
Full national or regionally customizable marketing programs are another commonly mentioned benefit of associate membership. “National coverage for the brand is very important for us,” says Brad Weber, inside sales associate at Ideal Supply in Stratford, Ontario. “Our corporate advertising campaign is here, there, and everywhere, and so that definitely drives a lot of interest in the overall brand.”
One way some programs have chosen to help drive their brand image is through a common in-store look using uniforms. “We’ve got all kinds of uniforms available to us, and it gives a very professional look to all of our stores,” says Weber.
While some jobbers appreciate the availability of uniforms and a decidedly corporate and professional look, others say they would rather spend their program dollars elsewhere. Terrio says he’s certainly of the latter opinion. “Uniforms are not really a big concern for me at this point,” he says. “If a counterperson shows up at work on time, ready to go, and he’s got clothes on, that’s all I care about.”
Training For Some, Little for Others
Training remains one of the most woefully ignored aspects in the associate program regime. Where many jobbers are delighted to find they can utilize myriad training courses to help educate their installer customers, many complain that their associate program provides little in terms of business management training for themselves, or technical training for their counterpeople. “Our program provides some excellent programs we can run for technicians and shop owners, and they really help get them interested in training and advancing their technical knowledge,” says Kevin Latus, owner of a Uni-Select operation in Spiritwood, Saskatchewan. “There isn’t really anything offered for the jobber, though. If our program would offer some sort of counterperson seminar, I’d definitely send my guys, because so much is changing so quickly in the parts business, that I just can’t keep up with it all myself.”
Franchising as an Option
While not technically an associate program, the rising influence of PartSource locations on the Canadian landscape is also giving jobbers some serious food for thought in terms of the future direction of their business. While not the preferred route of some owners, the PartSource model does appeal to those struggling with succession planning, a weak retail presence or anyone looking to divest themselves of some of the management minutiae. “We offer jobbers a variety of programs, but what makes us significantly different are the number of turnkey-style programs,” says Bruce Allen, president of PartSource. “From IT and marketing to store layout, everything is designed for the operator to be able to deliver a positive customer experience.” One key difference noted by Allen is a renewed focus on retail sales. As the Jobber News annual retail selling issue indicates, many jobbers are simply too busy with commercial clients to realize the potential of retail sales, and that is something Allen and PartSource are looking to change. “We deal in both retail and commercial, but the majority of our sales are on the retail side of the business,” he says. This sort of transition can obviously be difficult or uncomfortable for some jobbers who have followed a strict commercial business model for years, but Allen says this is only natural. “There is definitely a learning curve, and so it is important that both sides lay it all out up front. You always have to set your expectations before entering into a marriage, and we’ve had some very positive transitions as a result.” In fact, Allen notes that while retail, with its substantially higher margins, is the real growth segment, many jobbers who have switched to a PartSource banner have been able to maintain their commercial customer base and then some. “Have we lost some commercial clients in a few markets? Sure. But we’ve also had experiences where not only have all of the former garage customers stayed, but we’ve enabled the jobber to add new commercial accounts as well.”
Without a doubt, the jobbing business is as diverse as the people who work within it. As a result, the various programs that have been designed to make life a little easier are equally adaptive.
While many commonalities exist, the customizable nature of most programs will likely mean a solution can be found that fits the intricacies of your particular market.
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