Just Below the Surface: Opportunities in Belts and Hoses

For what is generally acknowledged to be a mature market, there is a surprising degree of change occurring in the world of belts and hoses.

While there have been innovations within the marketplace, the basic design of these products has, for the most part, remained largely unchanged for quite some time. Rather than drastic alterations to the physical design, changes are increasingly taking the form of small but important innovations, and challenges that go beyond product and down to the root of business investment and sales activities.

The sharp jobber can capitalize on what small innovations there are in this particular market niche as well as create and drive some sales in other areas, but there are a few challenges to navigate or even face head-on: swelling parts numbers, inventory issues, technical education, and a push for preventative maintenance.

As with many other automotive components, belts and hoses will continue to experience a veritable bloating in parts numbers from both the OEM and aftermarket side of the business.

While the increase in parts numbers can cause headaches for jobbers, it has also led some companies to develop innovative inventory solutions. As is becoming something of a norm within the industry, the responsibility often falls on the jobber to evaluate these changes critically, and then decide whether or not to champion said changes. By way of example, Marc Therrien, account executive, replacement products with Goodyear’s engineered products division, sees no end to parts expansion in the marketplace.

“Essentially [the] Engineered Products [division] is expanding SKU offerings in low pressure hose, timing belt tensioners, and serpentine belt tensioners,” he says. “Currently, 300 new SKU numbers are being added to our low pressure hose offering, to not only expand our offering to the marketplace, but also to keep pace with the proliferation of part numbers in the aftermarket.” While 300 new numbers from one company alone is certainly enough to warrant some attention, Therrien notes that this part number growth is required simply to keep pace with the needs of the marketplace.

As a result, jobbers have to consider adding new parts numbers on a nearly constant basis, as major automotive manufacturers roll out new models at an unprecedented pace. In recent issues of Jobber News, individuals from many different jobber outlets–branded and otherwise–have commented extensively on the notion of form, fit, and function, and what that has meant for many technicians. In the end, there seems to be some consensus that the aftermarket is inevitably moving in that direction, as a result of requests from garage techs looking to replace a part with one that looks exactly like the one that was just removed. As a result, many of the aftermarket’s top manufacturers are taking that tack.

Gates Canada marketing and communications manager Sandy Wallace notes that her company is certainly moving that way. “Gates’ strategy is to have replacement parts that look like and fit like the original equipment,” she says. “Promoting the OE fit, form, and function message has been and will continue to be the focus of marketing initiatives over the next few years.” With these sorts of initiatives, and the subsequent delivery of hundreds of new parts from major aftermarket suppliers, there appears to be only limited relief from the everyday inventory problems reported by jobbers.

Although somewhat muted in its overall appeal given the current climate of form, fit, and function on the installer side, there have been recent developments from Goodyear in particular that jobbers should investigate. With the release of its E-Z Coil line of products, Goodyear claims to have, at least in part, solved the inventory problem.

According to Todd Hechler, marketing manager for Goodyear automotive replacement products, the new offering helps eliminate the need to carry many conventional moulded heater hose SKUs. He also comments on some of the issues associated with a backlog of inventoried parts. “Auto parts outlets are selective in stocking parts to avoid slow inventory turns while generating strong cash flow,” he says. “Sales are sacrificed, since less popular hoses with few vehicle applications are avoided.” According to Goodyear, this system is gaining in acceptance, despite what other jobbers and technicians seem to be clamouring for.

That desire to streamline inventories has presented opportunities for innovation.

“A product which is gaining market share is the E-Z Coil,” says Therrien. “It’s a great problem solver whereby the heater hose can be bent into OE form, thus allowing the DIY or installer to replace the hose when the OE SKU is not available or when time is critical,” he says.

In all, the part has done well critically within the industry, having been recognized at last year’s AAPEX show, but in terms of the individual jobber it is still an independent decision. In short, this product seems to be one that could help you simplify your inventory, but such a switch is only worth it if you discover that your customers are willing to buy it. That being the case, take the time to work out a little analysis, including an estimated cost of time spent searching for available SKUs and revenue lost due to missing or unavailable part numbers, and combine that with a little local market research. Talk to your customers about some of the newer solutions to determine their likelihood of embracing these sorts of products, and in the end, you should be left with a fairly solid idea as to which route is best for your specific operation.

The nice thing about belt and hose replacements is the other opportunities it affords both the technician and the jobber for preventative maintenance sales. According to Wallace, this is certainly something her firm would hope to see a little more of, given the added benefits for literally everyone involved. “Jobber counterpeople are very important in promoting preventative maintenance and related selling strategies when dealing with service providers,” she says. If a shop calls in for a belt, the successful jobber outlets are asking the right questions to ensure the technician performs a complete job, and does not simply fix what he perceives to be the problem. “More often than not, a customer may have to come back to replace a part that was not taken care of during the original repair.”

For the top jobbers in the industry, asking the right questions comes down to having a solid knowledge of automotive specs. For example, replacing timing belts and tensioners in a lot of smaller import cars today is a labour-intensive process, with labour being far and away the most costly factor in the equation. Technicians need to be made aware that this is a perfect time to suggest the replacement of other components in that newly uncovered area–a water pump, for example. If explained properly to a customer, e.g. noting the cost of replacing the water pump now that it is exposed is going to save them going through all of this again, will help generate both goodwill and revenue. As with most aspects of the aftermarket, however, this educational burden falls most heavily on the jobber, although manufacturers claim to be chomping at the bit to lend a hand. “We must educate the technicians on what is available and the benefits to them,” says Therrien. “Various supplements and catalogues are always available from our sales representatives, as well as many POS materials that can be utilized by the installer to create awareness at the consumer level.” For her part, Wallace insists, “The Gates field team is armed with selling tools like training presentations, and is more than happy to hold store and/or installer clinics to help educate technician and counter personnel on the latest changes.”

In short, manufacturers are itching to help jobbers sell their products. That’s the crux of their business interest in your operation. However, by providing your clients with things like POS material and training seminars, you can’t help but increase your own local profile, and hopefully sales as a result.