Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info
Issue link: https://read.dmtmag.com/i/652971
18 prices remain optimal. "We try to show them 'This is where your prices are now, and if you restruc- ture your matrix this is where you are going to be,'" he says. "Pricing is an art, not a science. You have to monitor it every day," Strasze- wski says. Adjustments that move prices higher require careful consideration and tact. Wade says good customers are accepting of higher prices when they are intro- duced through balanced, incremental in- creases. It's when numbers swing wildly that customers start to recoil. "Customers know prices have to go up sometimes," he says. "One percent is there for you all day. You could go into your computer system at night and raise your prices 1 percent across the board and nobody would notice except for your accountant." And in cases where customers do speak up about higher prices, Wade says don't be annoyed. A customer who attempts to work with you when your price is high or alerts you to a better deal across town is a customer to be cher- ished, because that's a person who would rather have a diffi cult conversation with you than go somewhere else. "I always tell my customers 'Don't be afraid to come ask me. The worst I can do is say no,'" says Szabo. But Wade adds that in those situations a discount shouldn't refl exively be given as a reward, it should be given if market research proves your price is out of line. Being a premium aftermarket supplier means you're rarely going to be your cus- tomer's cheapest option, and customers should know that. "Your goal should not be to always get the last sale, your goal should be to always get the last look," Wade says. Purcell says Stone Truck Parts focuses on value and product quality when con- veying that message to its customers. "We don't sell private labels; we sell OEM fi rst-fi t parts and when we go to a customer we sell them on that," he says. "We try to educate the customer that you want to put back on the truck what came off the truck to maximize performance." In cases where a customer still balks or is hesitant, Szabo, Straszewski and Purcell all say they've given their sales people authority to temporarily adjust prices to make a sale. "We do allow them to make those decisions but we tell them to make sure they are comparing apples to apples and that [the prices] are for likewise compo- nents," Purcell says. And each distributor monitors these exceptions on a daily basis to ensure pricing overrides aren't overused. Exception pricing is so named for a reason, says Szabo. "If you fi nd out you're out of line that's one thing. It shouldn't be something you need to do all of the time." T R U C K P A R T S & S E R V I C E | M a r c h 2 0 1 6 Service sales potential also should be considered when set- ting retail prices. Offering low prices for parts used in service repairs can entice customers into your bays. And once there, those margins can be recovered through labor rates. Bill Wade with Wade & Partners advises distributors to include categories for service in a pricing matrix that can easily be quoted to a customer on the fence about a repair. And, simi- lar to retail parts sales, volume matters. A fl eet customer requiring service on 50 trucks can be quoted a different rate than an owner-operator. "The idea is to drive as much service work into your bays as possible because there's nothing like the margin on service," Wade says. Opportunities in your service department It doesn't matter how large or small, prices for all parts should be set with care to your profi t and margin goals, and overall bottom line. Cover Story