IAAF President Graham Knight feels the automotive aftermarket is on a path to self-destruction if it continues to focus purely on price ahead of value and customer service.
Speaking in the IAAF’s newsletter to all garages, motor factors and supplier members, Graham said the fixation on low prices meant that the trade is facing one of its most “severest challenges” to date.
“Value means getting what you pay for,” he said. “If service, quality, reliability and warranty back-up are better than your competitors, then all these elements should still command a good price. The challenge in the aftermarket at present is that we all seem to be disregarding value and service and focusing purely on price – and this is the road to ruin.”
“Most people hearing this will point to their competitor down the road, but there’s always been competitors selling cheaper products and this won’t change – we are all contributors to this issue.”
Graham offered a number of useful tactics to combat price challenges. “Each business has to look at its ‘point of difference’ and never tire of shouting about it. Motor factors, in particular, must also insist on a much closer working relationship with suppliers to better explain and demonstrate their proposition to customers.
“It’s easy to get swept up each day in a busy working environment, but we need to be bold and take a long hard look at ourselves and say “is our business set-up for the future? Do we communicate well with customers? When we are more expensive, do we explain the benefits and advantages of using us?”
The IAAF newsletter communicated to members the numerous IAAF activities and services available, all of which are designed to protect and promote the independent automotive aftermarket and the businesses that occupy it.
A copy of the IAAF newsletter can be downloaded online at www.iaaf.org.uk
