Plenty of research has looked at what makes companies successful, but what makes good Automotive Aftermarket Manufactures fail?
“Online research, It identifies 5 main points that bring about a change. They are:
1. Globalization: (Too Many Dealers)
Causes other dealers to stop selling your product because of flooding of the market.
Dealers will be competitive with each other rather then making money they sell it to beat out the competition (FAIL!)
Dealers lose sales and don’t push the manufactures products as much. (manufacture notices loss in sales)
2. Regulation: (Selling to Retail Customers)
Manufacture sells retail when they are only suppose to sell wholesale (lose dealers respect)
Dealers lose money competing agenst manufacture(FAIL!)
3. Competition: (Loosing customers to competitors)
Manufactures lose dealers because of no support and they go elsewhere
Dealer moves from one manufacture to another to sell the product that will make the most money.
Dealer leaves Manufacture because too many dealers selling the
same product causes a flood in market which create loss in sales.
4. Technology: (Having Online Shops as Dealers)
Having online only shops sell products kills the sales of the
physical shops because of over head cost(Dealer stops selling your
product)
Online sellers tend to give product away because they have no overhead and everything is dropped shipped(FAIL!)
5. Customer Service:
Manufactures tend to forget that when they first started to make
more money that it was the dealers that were there in the beginning.
Manufactures forget who brought them into a trend or scene all they care about is the fast money
Manufactures tend to treat older customers with no respect and push them aside. FAIL!
Dealers tend to be left out the loop so they turn to something
else and this causes loss in manufactures which goes back to the top 4
of this list.
When any of these external contexts changes radically and the
company is either unable or unwilling to change, it often results in
failure.”
This makes the point that the Automotive aftermarket is declining.
No company has ever managed to dominate for more than a few years,
which is why we don’t worry about the Manufactures or Wholesale
Distributors of the world. The market will take care of them in its own
time, insuring that they do not get too powerful and eventually fail
until these Manufacturers and Wholesale Distributors do something about
how they do business.