Truck Parts and Service

February 2012

Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info

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Cover Story Should You Take The Service Road? Th e aſt ermarket is constantly chang- ing, and as it evolves so do common business models and strategies. One growth strategy gaining R prominence is distributors adding a service component to their off er- ings. By adding service, distributors can add another revenue stream and potentially create a larger cus- tomer base. But adding service is not an easy task. Any business expansion in- cludes risk, and entering the service business without the proper expertise can spell disaster. For a distributor who's trying to decide if service is right for his com- pany, it's important to understand the risks and rewards before making the leap. You have to do your homework. Th e service business is too diffi cult to enter unprepared. Th e biggest benefi t of adding ser- vice is the creation of an additional revenue stream, says Bill Wade of Wade & Partners. 12 TRUCK PARTS & SERVICE | February 2012 service would fi t into your business before expanding. "It's another way to make money," It's important to examine how unning a successful parts distribution business in this era is challenging. he says. "With the viciousness of the economic cycle, there's been a col- lapse of the number of service bays in existence. Th ere aren't as many places providing service as there were four or fi ve years ago. "A (distributor) only selling parts is missing out on a chance to capital- ize on that. " At Point Spring & Driveshaſt , of- fering service has been the status quo for nearly 80 years. "Our company has been around since 1926, and we've off ered some type of service since we opened, " says Adam Diecks, the company's market- ing manager. "As our product off erings have increased so has our service. Diecks says Point Spring currently " provides service on everything from "suspensions on down." He says the company's business plan is simple: anything its bench service technicians can remanufacture they can install. "I think service strengthens our relationship with our custom- ers because we can provide more, " Diecks says. "It allows us to do more business with them."

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