Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info
Issue link: http://read.dmtmag.com/i/848272
24 guys need to get back and running," Lerach says. "We base most all of our promotions on the calendar so we can plan around the winter and what those customers need and the same for the summer." Randy George, marketing manager at Betts Truck Parts & Service, says that having eight locations spread from Phoe- nix to Portland creates some geographic planning, but says that seasonal planning is a must. "Each location has different spe- cifi c issues ranging from the weather in Arizona to the mining areas in Oregon, but we try to offer specials that appeal to customers in all the areas that we serve," George says. "The fi rst thing that we look at is what is top of mind for the customers and that is usually based around the seasons." Wilson says that setting appropriate initial price points can determine how to set prices on promotional items. "A fundamental tenet of pricing is that you need to cover your costs and then factor in a profi t," she says. "That means you have to know how much your product costs. You also have to understand how much you need to mark up the product and how many you need to sell to turn a profi t. Many businesses either don't factor in all their costs and underprice or literally factor in all their costs and expect to make a profi t with one product and overcharge." She stresses all suppliers, dealers, ven- dors and distributors should constantly re-evaluate costs. "To sell it right, you have to buy it right. If you are having a hard time sell- ing a product at an acceptable profi t, the problem may be that you are not buying the product right. It may be that your cost is too high rather than your price is too low" she says. "You should always be testing new prices, new offers, and new combina- tions of benefi ts and pre- miums to help you sell more of your product at a better price." Test new offers each month. Raise the price and offer a new and unique bonus or special service for the customer. Measure the increase or de- crease in the volume of the product you sell and the total gross profi t dollars you generate. That opens the door to raising and lowering prices for your products. Keeping an eye on what distributors and manufacturers are releasing also provides opportunities to offer new sales and promotionals. "Manufacturers launch new products and we try to use those as promotions in the market so we can we see the fl eets' interest in them," Lerach says. "Those are often good promotional products to offer." George says many Betts customers know when particular manufacturers run their specials and promotions so they base their buying needs around that. "We don't always know if a new product is going to take off immediately," he says. "Some of them take time to catch on as more and more people use them and tell others about them, so offering specials keep them on top of mind." It's also worth noting you can watch your competitors' products and pric- ing when looking to offer promotions, Wilson says. "It's helpful to look at the competition — after all, your customer most likely will, too," she says. "Are the products offered compa- rable to yours? If so, you can use their pricing as an initial gauge. Then, look to see whether there is additional value in your product or look to see how you can price it to remain profi table. The key to pricing, whether it's a sale item or not, is to make sure that you keep the profi t margin that you need." T R U C K P A R T S & S E R V I C E | J u l y 2 0 1 7 Many heavy-duty aftermarket suppliers and distributors use monthly, or even bi-monthly and weekly, specials on certain products. You should always be testing new prices, new offers, and new combinations of benefi ts and premiums to help you sell more of your product at a better price. – Laura Wilson, business consultant and faculty member at the University of North Alabama Sales & Marketing