Truck Parts and Service | Heavy Duty Trucking, Aftermarket, Service Info
Issue link: https://read.dmtmag.com/i/85632
Guest Column Dumb And Dumber fortunate to meet and visit with several of my peers over the years at industry events like CVSN, HDDC, HDAW and many others. Unfortunately, the topic of con- versation invariably becomes a discussion of what I call, "the race to the bottom." Many of us understand this contest A s I write this article, I do so in front of the mirror, as I should be listening to what I am saying. I have been as a competition on who can give away heavy-duty parts the cheapest. Enabled by volume-driven manufacturers and complicite distributors, this is a race that all contestents lose. Everyone reading this article is guilty By John Bzeta Fleet Brake boardrooms like a reccurring nightmare. Suppliers then are forced to respond by creating algorithimic like programs, side door deals, deceptive or false state- ments to make their customers feel better. Statements echo again like "You have can recite the part number or SKU by memory, don't focus or even waste pre- cious activity on it. Th is item has no profi t and soon will the best program," "Shhhh…that price is for your company only," "I will give you the trailer load price" and "Your com- be subject to online reverse auctions. If the end user describes it verbally such as "I need fi ve of those breather doohick- eys," you are on the right track. Renumeration or commission on items that end users can recite part I wouldn't be surprised if I walked into a liquor store and found brake drums and white box valves for sale. of participating too oſt en in this less than desirable race. My concern is that the indepen- our own sales associates focus on the top 50 part numbers in our industry. Th is results in a pathetic and depress- dent aſt ermarket is falling into a trap of making this part of its culture. Th is slide is a result of our vendors (dumb) and ourselves (dumber) focusing on volume and low-hanging fruit. Too oſt en our manufacturer reps and ing game that starts with distributors attempting to get a lower and lower price from suppliers. Statements like, "I need an edge," "I want maximum rebates," "Put me on the same level as the OE," "I will give you all my business," "Why can my competitor sell at my cost?" echo through industry petitor must be selling below cost." All this precious time and energy is anymore if I walked into a liquor store and found brake drums and white box valves for sale. My solution for both dumb and amount of new competitors entered the race to the bottom by adding heavy-duty low hanging fruit to their off erings. I don't think I would be surprised wasted on an activity that produces little or no profi t. In addition, over the past 10 years this same activity created the "all makes" industry and the advent of cheap off shore goods. In that same period, a ridiculous numbers for should be restricted or eliminated, as it can be compared to paying commission to a cashier at the gas station on the gas he sells. I went to a presentation at a conven- tion that sums it all up. We are not in the heavy-duty business. We are in the $100 bill business. Profi tability needs to take ultimate priority over sales volume. Culture can be defi ned as a refl ection of what this industry should be. I believe it should refl ect the hard work, commit- ment and passion that all reading this article possess. It should not be bunch of circus dumber is the same. Focus your teams on fruit that is hard to pick. If you don't know how, or you are getting resistance from your staff , try this: If the end user (the guy who throws the box away) clowns with high-blood pressure beating each other over the head with baseball bats and wondering why our wallets are empty. I have to stare at the mirror for a while. John Bzeta is president of Fleet Brake headquartered in Calgary, Alberta, Canada and is the 2011 Truck Parts Distributor Of Th e Year. Th e views expressed in the Guest Editorial are those of the author and do not necessarily refl ect the opinions, beliefs and viewpoints of Truck Parts & Service magazine. 4 TRUCK PARTS & SERVICE | September 2012