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While
more and more dealerships recognize how important parts and
service sales are to overall profitability, many are sending
troubling signals to their current--and potential--marketplace:
they're cutting back on their product support sales force
to save money.
Here we
go again. When the market contracts, dealerships drop the
employees responsible for growing the most-profitable part
of the business. Perhaps they doubt the value of product support
sales reps. Perhaps they still think the shingle sells.
Whatever
the reason, they're sending quite a (negative) signal to their
customers. They're reducing customer contact just when the
dealership most needs face-to-face demonstrations of the benefits
of its products and services.
In AED's
upcoming Product Support Opportunities Handbook, more than
450 equipment customers from across the country reveal why
they choose the vendors they choose for parts and service.
They select
maintenance services based on convenience and price because
they feel there's no technical advantage to be gained from
dealership technicians doing the work. If we're talking about
changing filters and fluids, they may have a point. But filters
and fluids are not what regularly scheduled preventative maintenance
service should be all about.
Equipment
manufacturers want their product operating at peak performance
levels at all times, and they set maintenance intervals accordingly.
How well can a dealership communicate this to current and
future customers if there are fewer employees to deliver the
message?
Equipment
users choose independent mechanics or their own staff for
maintenance services 95% of the time. That means dealerships
are missing out on almost all of this business. Sure doesn't
look like the shingle is doing a good job of selling maintenance
services.
If customers
don't see the need to turn to the dealership to maintain their
equipment, we as an industry have not done--and are not doing--a
good job of explaining why the dealership is so important
in eliminating downtime.
And now,
in an effort to save a few bucks, some dealerships think they
can hammer home that message with fewer employees.
Sure,
you can save money by reducing the number of product support
sales reps. But that's like the Fram oil filter. The company
based its advertising campaign on "pay a bit more for a Fram
oil filter now--or pay for a much-more costly engine repair
later." The trouble with the pay-me-later scenario is that
the customer chooses to go elsewhere for these services. And
once it's gone, it's very difficult to get that business back.
The product
support sales force is essential to a dealership's success.
But its role still is highly misunderstood and grossly undervalued.
Profitable
dealerships view their product support sales force as highly
sophisticated professionals, and expect corresponding results.
Serving as the experts on the features and benefits of the
dealership's products and services is just the first step.
These dealerships also make these employees an integral part
of a well-oiled (no pun intended) sales operation. They are
required to work closely with the equipment sales and rental
sides of the business to capitalize on each and every opportunity
to expand all types of business.
The dealership
uses these employees to offer customers a comprehensive--and,
hopefully, irresistible--package of products and services
that eliminate the desire to go elsewhere.
Not surprisingly,
this isn't an easy position to fill. This isn't a delivery
person. Nor is it a public relations "Good Time Charlie".
This is a skilled, well-trained professional salesperson.
If this
were the make up of dealership product support sales reps,
there'd be no doubt about the value they provide to either
the customer or the dealership.
In tight
economic times, dealerships should be adding market coverage--not
contracting it. The Fram oil filter approach has turned out
to be true. Imagine if 95%--not the existing 5%--of customers'
maintenance needs were handled by equipment dealerships. Think
of the profit that would add. But how can dealerships get
there with fewer salespeople?
You know
what? It can't.
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