"Our approach when adding programs is to look at three issues: will it help the member compete better in the marketplace; will it add some financial value to the member or group; and will the majority of the members support it? That's our criteria," says Dan Freeman, president of Automotive Parts Associates, Inc. (APA).

With members noting there is less traffic in the bays than ever before, successful programs are key to helping stores remain competitive and reduce costs. A few years ago, APA developed a continuous form program with forms manufacturer Moore Wallace that allowed APA members to buy computer forms like invoices at a cheaper rate.

"With that came a lot of residuals," explains Freeman. "For instance, a lot of our members need printing services for promotions, and Moore Wallace has really good pricing. Many members have gotten prices to 50 percent of what they were before by using Moore Wallace."

Current market situations are also important considerations for Federated Auto Parts.

"I think one of the biggest challenges right now are the price increases tied to steel," says Phil Moore, vice president of marketing for Federated. "It affects so many of the things we sell. Our challenge is how do we keep our customers' minds on programs when they're more concerned about product availability and whether or not pricing is going to go through the roof."

He continues that it is important to convince Federated's 4,000 independent jobbers that it's still "business as usual."

"It's all about education on why items are costing more. We educate installers who in turn can educate the consumer," says Moore.

Bill Burns, CEO of Independent Warehouse Distributors, LLC, says "the single biggest feature that we look for in any program development is what will benefit the downstream customer and make our members better purchasers, better providers of programs and product for their ultimate end customer."

The program group is focusing on the professional mechanic and repair shop because it represents the bulk of their business. However, Burns notes there are new opportunities arising for IWD members.

"One of the biggest areas of opportunities we see and have been devoting our resources to in the last 10 to 12 months is the area of national fleets," he states. "It's an arena that we have not previously chosen to play in, devoting most of our efforts — marketing and otherwise — to the professional repair channel, both automotive and heavy duty. But having that and having a national network of professional repair shops, we now believe we have a unique opportunity to go into the fleet marketplace and not only offer quality goods, but quality service as well, which appears to be a rather unique offering that we as a program group have."

Something for everyone

At Aftermarket Auto Parts Alliance, its determining factor for implementing any program is whether it's suitable for the entire group.

"We design our programs so they appeal to everyone and are easy to implement, because if they're not we'll only get a small percentage of our members to participate," explains Steve Marks, senior vice president of marketing/advertising with the Alliance.

However, the something-for-everyone approach highlighted in the Alliance's certified service center programs is an even greater source for the group's success because the programs are organized in a menu format so individual shops can pick and choose what will work best within their market and business plans.

"The programs are designed to help shops go to market; and to keep a consistent brand and image in front of their customer base while running their businesses as they see fit," Marks adds.

Moore at Federated concurs that developing one program for members all across the U.S. is this group's biggest obstacle.

"We try to make the program flexible enough where a member can take it and make it work in his particular market," he notes. For example, Federated's annual car care program is designed for the technician, but members can take it to market many different ways.

"We have members that tie the program to purchasing a product, members that sell it outright, members that put premiums with the package to make it more attractive," says Moore. "We get their net costs on a program to a place where they have a little flexibility to make it work for them."

Steve Upton, president of TruStar, says his group implements programs that are voted on by a steering and marketing committee and that add value to undercar distributors.

"Each independent member must then decide on a strategy for implementing these programs for success," he explains. TruStar also looks at pricing, availability, packaging and quality when developing new programs.

At The AAM Group, they are embracing new technologies, including posting videos on YouTube, to serve their members, says Tim Odom, president of the group.

"We try to help stores at the local level use the Internet in new ways to develop a business online," he says. "We don't expect small retail stores to compete with national players, but there are consumers looking for a local source for product and service, and we've developed documentation to help them build sites that are specifically targeted for local traffic. There are some consumers who would prefer to buy product locally, but they are using the Internet to find that local place to research and buy it."

Odom believes less than one-third of AAM's members currently have a Web site.

"The opportunities certainly exist for a local store to benefit from the Internet," he advises. "It's very time consuming (to maintain a Web site) so we're hoping to take some of that learning curve out for our stores."

To maximize the programs, AAM also links stores with their vendors' "where to buy" programs.

Feedback, feedback, feedback

Marks says members of the Alliance are the same as our entire industry and need help attracting and keeping quality, affordable personnel, so the group develops programs to attract customers at both the installer and jobber levels.

"This year we individually packaged our marketing material for the store and service center, rather than sending in bulk, which made it easier for the warehouses to go and find new jobber customers," he explains. "They could take this packet of information from us, add their local material to it, and take it direct into the field. The same approach can be followed by the jobber."

"The main factor is input from members," agrees Bill Maggs, president, National Pronto Association. "Our members really know their marketplaces very well and are in tune with their customers and their customers' needs. So every program that we work on, whether it is a product issue, a marketing issue or a technology issue, it's all based on what's going to add value for the members and their customers."

When it comes to initiating programs, Federated also relies heavily on member feedback, seeking input from member councils on what works in particular markets.

"Our members really communicate with each other, sharing advice and ideas," Moore shares. "What we're trying to do today, based on member feedback, is gear our programs toward the professional technician. As cars get more difficult to work on, I think our members realize (the technician) is where our bread and butter is."

To answer their needs, Federated is creating programs that tie the service provider to a particular Federated member as well as give technicians services to help them perform their jobs better, which is good for the entire industry.

"Free TVs and hats are nice, but if we can give (shops) a way to get information — a tool that can help them improve their business — it's beneficial to everyone in the long run," notes Moore.