Outwitting predators

He spoke with passion about what he was doing to keep his business viable. I remember thinking that I couldn't make up my mind if my friend was clueless or fearless. I was pretty sure he had to be one or the other to hang on with the sort of competitive pressure he was under, but I just couldn't seem to decide which.

I say that because he is outnumbered and outgunned by larger players who are targeting his business for their growth. Competitors are eyeballing him like the pumas that target the slowest members of the antelope herd they are tracking.

He is under siege on every front. The big retail chains own the DIY business in his market. Their direct overseas sourcing, house brands and leveraged buying practices have made it nearly impossible to compete with them on over-the-counter sales. "The only retail business I see is based on my having the part the DIYer can't find anywhere else," he says. "And that's fine. If I have it, I'm happy to sell it for as much as I possibly can."

When I asked him if he is worried about seeming high priced, he answered, "Not in the least. I know (the DIYer) is headed back to Advance the next time he needs a fast moving number; it's not like I need to be concerned about his loyalty. He'll be back the next time they don't have something, not before."

He also is battling program groups that are targeting chains such as Midas, Goodyear and Firestone, and cutting national deals for their stocking and non-stocking business.

I asked him if he was concerned about that. "Not especially. The program groups will feel the impact of those deals temporarily, but I know I will get the business back. Too many parts sellers are doing things that are good for them and not for the customer."

He described some examples, such as pushing house brands ahead of brands technicians are comfortable with. He feels that, deep down, technicians care more about service and brands than they do price, "but they will never let you know that." He reasoned that price is the one quantifiable measure techs have of all their suppliers. "It's harder to measure service elements, so they then bang you on price."

When I asked him how to make service count more than price, he answered: "Your people." People are the critical link to the customers in the bay, and it is their relationship with techs that protects the business. He stresses the importance of giving his people the flexibility to act as entrepreneurs in their stores to find ways to resolve customer issues — especially price.

"My dad used to say, 'If the OEMs ever decided to be in the parts business, they would crush us.' Now I tell my kids, 'If the retailers ever figure out how to service installers, they would crush us.'"

As I hung up the phone, I decided my friend was just plain smart. Putting the needs of independent shops first is what makes him successful. His commitment to his people was the second critical part of his success. And while he lacked many of the tools his competitors had, I was happy he wasn't my competitor.

Bob Moore is president of Bob Moore & Partners, a consulting firm that specializes in the automotive aftermarket. Moore can be reached at [email protected].

BOB MOORE President, Bob Moore & Partners