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Volume 53 | Number 7 | July 2017

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Editorial | Lucas Deal

The new roadblock for Right to Repair By Lucas Deal, Editor lucasdeal@randallreilly.com

he Right to Repair debate has resurfaced again in Massachusetts. Last month the northeastern commonwealth — the first state to pass Right to Repair legislation into law — held a public hearing regarding its House bill 2784. First proposed in January and backed heavily by the Auto Care Association, H-2784 is written as “an Act providing for an investigation and study by the Office of Consumer Affairs and Business Regulation regarding the implementation of Chapter 165 of the Acts of 2013 (Right to Repair Act).” In simpler terms, H-2784 would allow Massachusetts a method to check and make sure the OEMs impacted by its 2013 Right to Repair law are actually, you know, following the full scope of law. To me the sheer existence of this bill makes me think they probably aren’t. And if that’s the case in Massachusetts, it’s probably true nationwide. The automotive and heavy-duty industries agreed to nationwide Memorandums of Understanding (MOU) with their respective independent service channels after Massachusetts’ Right to Repair Act was passed. The thinking back then was obvious: once voters in one state showed overwhelming support for the Right to Repair movement it made sense for both sides to sit down and work out a national agreement. Better to fight one large battle than 49 smaller ones, especially considering the smaller battles could still result in a

more disjointed but ultimately similar marketplace. The commercial vehicle industry’s MOU was finalized in 2015. A landmark agreement from the start, the document was to ensure vehicle owners and independent repair facilities would have access to OEM-controlled service information, tools and parts they would need to safely and properly repair commercial vehicles. The MOU also was to allow independent service providers the ability to purchase OEM diagnostic equipment to use in their operations.

The independent aftermarket needs to know the information OEMs agreed to release will become available. The good news for trucking is a lot of this has been done. OEMs have built web portals to house service information and created independent service providercentric diagnostic software for purchase and use in the field. More data is released every month, and for an independent aftermarket that fought so hard and so long for single shreds of information, the windfall of information available now has not gone unnoticed. But a lot also doesn’t equal everything, and as the independent aftermarket

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becomes more comfortable using the literature and diagnostic information OEMs are providing, they are also becoming increasingly more aware of what is still being withheld. That’s why Commercial Vehicle Right to Repair Coalition President Marc Karon says he made the decision to testify at Massachusetts’ hearing last month. Karon says the independent aftermarket is grateful for the MOU it reached with trucking’s OEMs and hopes it will support the market for decades to come. But a deal’s a deal, and Karon says the independent aftermarket needs to know the information OEMs agreed to release in the MOU but still haven’t will someday become available. “We are very grateful for what we have received from OEMs thus far. We believe our Right to Repair effort has been somewhat successful, but we have yet to receive everything we were promised,” he says. “We are trying to get to the finish line.” I think this is the right call for the independent aftermarket. The CV Right to Repair Coalition worked too hard for too long to get an MOU in place only to see it be casually followed by those who agreed to it. My hope would be more legislation wouldn’t be necessary to make this MOU hum, though I understand the draw for some level of monitoring. Here’s hoping last month’s nudge was enough to bring trucking’s OEMs back in line with the industry’s agreement.

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Editorial | MacKay & Company

Longest Day: Good time to look at the long and the short of the aftermarket By John Blodgett MacKay & Company

s I write this column, we just finished the longest day of the year (I mean daylight hours, not a bad day, which doesn’t seem to want to end) June 21. Not quite the midpoint of the year, but close, so maybe it is a good time to review what we at MacKay & Company know so far about the aftermarket for 2017. I do understand that by the time you are reading this it is likely August and Jordan Spieth has already won the British Open. Let’s start with our Fleet Utilization Index. Each quarter we measure fleet vehicle utilization rates for more than 700 fleets of various sizes and vocations. Obviously, fleets’ equipment usage has a direct impact on the aftermarket for parts and service. First quarter utilization came in at a record high and the forecast by the fleets for the second and third quarters was also very strong. We also have an Aftermarket Index of component suppliers’ sales to OES and independent channels. Preliminary numbers through May have the parts sales for these participants up 3.5 percent year-to-date compared to last year. Canada is up 7.8 percent. Sales to independent channels are outperforming OES in both markets. Both markets (U.S. and Canada) were down last year compared to 2015. Commercial break:

If you would like to join our Index, let me know. Now back to the column. Monthly, we also survey several truck dealers and independent parts distributors each month about their aftermarket parts sales. Our survey respondents in May for both channels were up between 4 percent and 5 percent year-to-date compared to 2016.

Now is the time to take advantage of a good market and make hay Bob Dieli, our economist and frequent contributor to this column, has a short-term economic outlook tool called Enhanced Aggregate Spread (EAS). I won’t enlighten or bore you (depending on interest level for economic forecasting) on the details now, but basically Bob takes four real economic measurements, combines

them in an Index and pushes it out nine months — turns out to be a good short term indicator of economic activity. At present, it is showing positive economic activity out into the first quarter of 2018. EAS is also a good leading indicator for our measurement of trucking economy called Truckable Economic Activity (TEA). Currently all sectors of TEA are at or above levels measured last year. Retail sales are forecast to be down this year, but while retail sales can be an indication of economic health, they don’t truly impact the aftermarket of the current year. Our forecast for 2017 aftermarket in January of this year was for the market to be up 1.5 percent over 2016. At present, that looks light, but time will tell. We do complete our major update and forecast in July, so stay tuned. In summary, most indications are positive and the short-term outlook is positive, business and consumer confidence is good and forecast capital spending by corporations is expected to be up. Now is the time to take advantage of a good market and make hay (or better yet money). Turn off the radio and TV talking heads (and twitter account if you have one) and focus on what you can control — your business.

John Blodgett has worked for MacKay & Company for more than 20 years and is currently vice president of sales and marketing, responsible for client contact for single and multi-client projects. He can be reached at john.blodgett@mackayco.com.

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Industry Focus

Dealer News Bergey’s has opened a new facility in Pennsauken, N.J. Worldwide Equipment of South Carolina’s three locations in Charleston, Columbia and Greenville are now full-line MAC Trailer dealers. Kenworth of Pennsylvania has been Gold Certified at four locations. Fyda Freightliner is nearing completion on the company’s newest dealership, Fyda Freightliner Western Star Northern Kentucky.

Penske Truck Leasing has entered into an agreement to acquire Richmond, Va.-based Old Dominion Truck Leasing.

Great Dane’s Atlanta, Ga., branch relocated to a new facility. Spartan Specialty Vehicles has opened a new flexible manufacturing facility in Charlotte, Mich.

Truck Centers, Inc., has opened a new location in Effingham, Ill.

FleetPride Expands Distribution Facilities FleetPride has expanded its distribution centers in Atlanta, Dallas and North Haven, Conn., to support its strategy of expanding its supply chain capabilities for replenishment to its 260-plus stores. “We have implemented a total supply chain transformation that makes FleetPride the industry leader in product breadth and availability,” says Allan Dragone, FleetPride CEO. In addition to its warehouses, FleetPride says it also has expanded its private fleet of tractor trailers and delivery vehicles to support faster delivery for a large selection of truck parts, and has added new products to its catalog including radiators, charge air coolers, Dorman heavy-duty and hydraulic products.

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Arrow Truck Sales, Inc., has announced that NAIT (National Association of Independent Truckers) has become a PRIME National Account. The GTC Dealership family has added a Western Star Truck franchise to its Medford, Ore., Freightliner Northwest truck dealership. Travis Body & Trailer has honored C.M.C. Trailer Distributors of Fort Worth, Texas, as its No. 1 Dealer for 2016. Travis also recognized Alamo City Trailer Sales as its Best New Dealer of 2016, and named Southern States Utility Trailer Sales, Jackson, Miss., the 2016 Most Improved Dealer. Travis Body & Trailer also has added Florida Utility Trailers to its network in North America.

Federal Signal Purchases TBEI Federal Signal Corporation has completed the acquisition of Truck Bodies and Equipment International (TBEI) for a purchase price of $270 million, subject to customary closing adjustments. TBEI represents a portfolio of six established brands, Travis Body & Trailers, Crysteel, Ox Bodies, Rugby, DuraClass and J-Craft. “We are excited to welcome the TBEI businesses to our Federal Signal portfolio of brands,” says Jennifer L. Sherman, Federal Signal’s president and CEO. “Their product offerings will allow us to further diversify into higher growth, maintenance and infrastructure markets, while balancing the mix of revenue streams between municipal and industrial, and reduce our exposure to oil and gas.”

Industry Focus

Accuride Acquires German Wheel Manufacturer Accuride Corporation has entered into an agreement to acquire mefro wheels GmbH (Mefro Wheels). Headquartered in Solingen, Germany, Mefro Wheels is a privately-owned supplier of steel wheels to the European and Asian passenger car, light vehicle and commercial vehicle industries. It was founded in 1991, has approximately 3,000 employees and maintains manufacturing operations in Germany, France, Turkey, Russia and China. “The strategic acquisition of Mefro Wheels will solidify Accuride’s position for future growth as a supplier of wheel end solutions to the global commercial vehicle industry, enabling us to better serve the needs of our global customers,” says Rick Dauch, Accuride president and CEO.

Accuride says its acquisition of Mefro Wheels will create a global commercial vehicle wheel and wheel-end component supplier employing approximately 5,000

people at 15 manufacturing facilities in North America, Europe, Russia and the Asia-Pacific region.

Keeping fleets in motion for over a century

Dickinson Fleet Services Acquires Aftermarket Service Provider Dickinson Fleet Services has acquired Reliable Mobile Service of Chicago. The company completed the acquisition with majority shareholder Ridgemont Equity Partners. Reliable Mobile Service has more than 20 years of experience servicing light-, medium- and heavy-duty vehicles in the Chicago market, featuring a state-ofthe-art shop facility, mobile on-site units and a strong talent pool of employees dedicated to excellence in the market. “This acquisition will provide Dickinson Fleet Services with the opportunity to establish a stronger foothold in one of the better markets in the Midwest. The new shop facility, additional mobile units and the highly trained and professional technicians will allow us more capacity to serve the Chicago market,” says Ted Coltrain, executive with Dickinson Fleet Services.

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Industry Focus

Air Disc Brake Savings Calculator Haldex introduces its Air Disc Brake Savings Calculator, designed to help customers determine the long-term savings of air disc brakes compared to drum brakes over the life of the vehicle (tractor or trailer). According to Haldex, the web-based calculator was developed to allow fleets to input customized data into the calculator to determine their “life of the vehicle” savings by comparing the overall cost of ownership between drum brakes and air disc brakes. Haldex adds the calculator allows the customer to input actual labor cost per hour, material cost (for both truck and trailer), annual mileage, replacement cycle (number of years), number of units, vehicle downtime, etc. Not only does the calculator determine direct cost, it also determines total cost over the life of the unit and total cost savings.

People In The News Phillips Industries has hired William (Bill) Ellis as the managing director for Phillips Connect Technologies. BBB Industries has added Joe Bergsieker as Ellis regional vice president, Sales. Kari Rihm, president and CEO of Rihm Family Companies (RFC) has received the Ernst & Young Entrepreneur of the Year 2017 Award in the Rihm Upper Midwest. Red Dot Corporation has hired John McCormack as senior supply chain manager and Ken Montelongo as aftermarket regional manager. Grote Industries has hired Kevin Cornelius as a new business development manager for Harness and Power Delivery business. TP Commercial Solutions, LLC, has appointed Alex Vitale as its new CEO for North America. Double Coin and CMA has added Tim Abel as Southwest regional sales manager.

Truck Bodies & Equipment International, Inc., has hired Ashley Pace as distribution marketing manager. SIRCO Industries, Inc., has appointed Bill Mize as National Sales Manager. Pace Spartan Motors, Inc., has appointed Tom Ninneman as president of Fleet Vehicles and Services. JX Enterprises has named Marty Kleker as its new vice president of sales. Richard Davis, lead technician with Hogan Truck Leasing, Inc., was named Top Tech at the seventh annual NationaLease Tech Challenge, hosted by Michelin and TCi Tire Centers. Shane Jorgenson has joined Summit Holdings as chief financial officer. STEMCO has also awarded Longview (Texas) High School senior Gus Williams a $5,000 scholarship as the winner of the company’s first ever Scholarship and Design Challenge. Billy Stanley, technician at Rush Truck Centers - Houston, won Hino Trucks’ annual Service Skills Competition in Novi, Mich.

STEMCO Opens ‘Friction Factory’ STEMCO announced its first friction production plant will open in July 2017. The company says 43,000 sq.-ft. “Friction Factory” is designed to manufacture brake shoes and friction components for medium- and heavy-duty truck and bus applications. “STEMCO is committed to manufacturing high-quality, state-of-the-art components that focus on fleet safety and performance expectations,” says Doug Hix, vice president and general manager. “I’m very pleased the new facility allows us to carry out our mission to drive innovation and continue to serve our customers with high performing products.”

STEMCO’s first friction production plant will open in July 2017.

Built in response to STEMCO’s ongoing growth, the company says the heart of the new facility is a programmable logic controller (PLC) that controls all mixers, presses, ovens and machining equipment with real-time monitoring and recording of all operating parameters.

Truck Parts & Service Calendar Event information can be submitted at: www.truckpartsandservice.com/story-ideas/

Aug. 8-11 ADS International Convention & Trade show, Las Vegas Aug. 24-26 Great American Trucking Show, Dallas Sept. 9-13 CVSN Aftermarket Distribution Summit, Amelia Island, Fla.

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Industry Focus

Michelin Acquires Fleet Telematics Operation Michelin has agreed to acquire NexTraq, a U.S. provider of commercial fleet telematics, in an all-cash transaction. Based in the Atlanta area, NexTraq is a

subsidiary of FLEETCOR Technologies, Inc., a leading global provider of fuel cards and workforce payment products. Since its inception in 2000, NexTraq

has become a leading provider of GPS fleet management solutions for fleets of small commercial vehicles (Classes 3-5) ranging from two to 50 vehicles, the company says. “Telematics and fleet management services are a rapidly growing category worldwide and an important area of Michelin Group’s overall business plans,” says Ralph Dimenna, chief operating officer for Michelin Americas Truck Tires, the heavy truck unit of Michelin North America. “NexTraq represents a strategic acquisition that accelerates our growth in telematics with synergies that increase our scale, expand our geographic footprint and strengthen overall competitiveness in fleet management technology and services in the United States.”

Auction House Purchases Competitor, Expands Ritchie Bros. has completed its acquisition of IronPlanet, for approximately $758.5 million, subject to customary closing adjustments. The acquisition of IronPlanet accelerates Ritchie Bros.’ strategy of becoming a one-stop, multichannel company where customers can buy, sell or list equipment, when, how and where they choose – both onsite and online. “We are pleased that the acquisition of IronPlanet has been completed and I am delighted to welcome IronPlanet employees to the Ritchie Bros. family. Our shared passion for serving customers is loud and clear and it will continue to be our guiding light in the unified company,” says Ravi Saligram, CEO at Ritchie Bros. Later this year, Ritchie Bros. says it will combine its online EquipmentOne brand with the IronPlanet DailyMarketplace, creating a harmonized brand offering called Marketplace E that gives customers more ways to set reserve pricing.

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Tech Updates

CLASS

SAFETY RECALLS The following are safety recalls issued by the National Highway Traffic Safety Administration: Daimler Trucks North America (DTNA) is recalling certain 2017 Freightliner Cascadia and Western Star 5700 trucks built with NFD tandem rear axles. During the hardening process, the axle assembly output shaft may have been made brittle, possibly resulting in the output shaft fracturing while the vehicle is in use. If output shaft fractures while descending a grade, the compression braking will be ineffective. Additionally, large debris may land in the road. Both scenarios increase the risk of a crash. DTNA is recalling certain 2016-2018 Thomas Built Buses Minotour DRW school buses. The occupant seats may have been installed without reinforcement brackets being used underneath the seat rail as intended. Without reinforcement brackets, in the event of a crash, the seats may come loose, increasing the risk of injury. DTNA is recalling certain 2014-2018 Thomas Built Buses Saf-T-Liner EFX and Saf-T-Liner HDX school buses. The occupant seats may have been installed without under-rail washers, reducing their anchorage strength. Without under-rail washers, in the event of a crash, the seats may come loose, increasing the risk of injury. DTNA is recalling certain 2013-2018 Thomas Built Saf-T-Liner HDX transit and school buses. The occupant seat lap belts may have been anchored to the seat instead of the bus structure. A seat lap belt anchored to the seat instead of the bus structure may not properly restrain the seat occupant in the event of a crash, increasing the risk of injury.

Isuzu Technical Center of America is recalling certain model year 2008-2009 and 20122013 Isuzu NPR and NPR HD vehicles and 20082009 GMC W3500 and GMC W4500 vehicles. The affected vehicles, equipped with a gasolinepowered engine, have a throttle pedal that may get stuck under the steel stopper bolt, causing the pedal to remain in the full throttle position. A stuck open accelerator pedal may result in very high vehicle speeds and make it difficult to stop the vehicle, which could cause a crash, serious injury or death. McNeilus Truck & Manufacturing is recalling certain 2016-2017 Bridgemaster V concrete mixers, equipped with both FLEX Controls and an optional broadband backup alarm. The backup camera display may shut off and the alarm may stop sounding if the truck is in reverse for an extended period of time. If the backup alarm stops emitting the alarm sound when the truck is still reversing, others may not be alerted that the truck is backing up, increasing the risk of personal injury. Paccar is recalling certain 2012-2018 Kenworth T800 and T880 vehicles equipped with Neway ADZ tridem rear suspensions. The brake control airline may be the incorrect size, resulting in an imbalance in the service brake application timing. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 121, “Air brake systems.” An incorrectly sized airline may lengthen the distance needed to stop the vehicle, increasing the risk of a crash.

DTNA is recalling certain 2013-2018 Freightliner Custom Chassis S2G Chassis trucks. The vehicles have an airline hose and the engine block coolant heater wire that may not have been properly routed and secured during production. The affected airline and wire may contact the exhaust pipe, possibly resulting in melting and shorting, increasing the risk of a fire.

Pierce Manufacturing is recalling certain 19992013 Arrow XT, Dash, Enforcer, Quantum and Velocity fire trucks equipped with the electric All-steer rear steering option. The affected vehicles have rear steer axle shafts that were not properly heat treated. Axle shafts that are not properly heat treated may break and potentially disable the vehicle, increasing the risk of a crash.

Daimler Vans USA is recalling certain 2016 Mercedes-Benz and Freightliner Sprinter 2500 and 3500 vehicles equipped with reinforced front axles. The affected vehicles have tire labels on the B-pillar that list a tire pressure that is too low. Operating the vehicle with low front tire pressures may result in tire damage, increasing the risk of a crash.

Spartan Motors USA is recalling certain 20102014 K2 and K3 motor home chassis and Gladiator emergency response chassis cabs. A component within the starter motor may break, potentially resulting in the starter motor overheating or drawing excessive current. A starter motor that overheats may increase the risk of a fire.

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Cover Story

Lessons learned Options for training an aftermarket sales team 14

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By Lucas Deal, Editor lucasdeal@randallreilly.com

Cover Story

fter employee recruitment and retention, there may be no larger issue currently facing the independent aftermarket than training.

More than 40 percent of responders to the 2016 Truck Willis says product training is a necessity to keep CRW Parts & Service Reader Survey claimed sales training to be employees up to date on new supplier lines, related parts, an important or extremely important priority for their product identification and service tips that allow them to businesses; and 60.5 percent of those same responders said better recognize customer needs and quickly fulfill orders. the same regarding the acquisition of maintenance and In most cases supplier-provided product training is techtechnical how-to information. nical in nature, with a focus on performance, functionality, While this quest for information isn’t new, when coupled and the equipment for which it is built. For distributors with the torrent of new technologies being installed and looking to training parts and service employees alike, these retrofitted on equipment, it’s easy to see how distributors courses can be doubly useful. could feel overwhelmed. But distributors without a service shop shouldn’t be The good news is these new dissuaded from requesting vendor products haven’t come alone. With training. There’s no better supliterature, multimedia and oldplier of product information than fashioned hands-on instruction, the its manufacturer. Some suppliers supplier community is supporting will even modify their conventional its technology boom and creating training to better inform distributor materials to keep the aftermarket up employees. to speed. Sean Ryan says he’s had good But these efforts only go so far. luck with that at Point Spring & Keeping a sales team on top of its Driveshaft. Ryan says his company HDA Truck Pride and VIPAR Heavy Duty are both product portfolio requires a push schedules a dozen or more supplier supporting comprehensive supplier training at the distributor level as well. Like training courses a year as part of its libraries on their websites. any teacher or educator, distributors quarterly sales meetings. Ryan, the who want to train must have a plan. By answering a few company’s vice president, says the courses normally track key questions, distributors can discover where training is on the technical plane mentioned above, but he has had most vital in their operation, as well as the best avenues for success in recent years asking suppliers focus more of their providing it. presentations on value and product differentiation. He says knowing how a product works is helpful, but What do you want to learn? when it comes to point of sale, he wants the Point Spring & A distributor specializing trailer parts won’t get much from Driveshaft sales team to also know why the part they sell “is a training course on turbocharger replacement; nor will a better than the competitive product out there.” Peterbilt dealer sitting down to learn about the characterOther skills for selling, such as problem solving and istics of a Western Star’s electrical system. Training is most customer service, also can be taught through training. Some valuable when it addresses a problem, fills a knowledge gap vendors touch on these topics within product demonstraor expands the capabilities of those in attendance. tions (when contacting a vendor to schedule a training, nevFor counter professionals and outside salespeople, CRW er hesitate to ask about what else they can cover) and many Parts has found success with product-specific training, says aftermarket associations feature educational programs and President Dave Willis. webinars geared toward selling on a yearly basis.

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Cover Story

How do you want to be trained? The popular ‘fleet nights’ and after hours classes that have dominated aftermarket training for decades still exist, but they are no longer the only options for distributors eager to learn. In fact, when it comes to availability, the best place to find training materials is online. “We have found a lot of our suppliers are starting to do webinars and YouTube videos and our guys seem to like that,” says Marc Karon, president at Total Truck Parts. A long-time advocate of training, Karon says it is becoming increasingly harder to schedule on-site training due to increased demand. Supplier reps can only be in so many places at one time, but are omnipresent in online libraries. And while Karon admits it took time for all Total Truck Parts’ salespeople to become acclimated with online learning — young employees took to it immediately while veterans were reticent, he says — the wide scope of available methods has proved helpful in gaining buy-in. The webinars and videos have been particularly valuable, he believes, not just for their unrestricted availability, but because of the visual learning component. With veteran salespeople who are used on on-site training, learning via video is a much easier transition than written literature and quizzes. CRW Parts has found success online as well, adds Willis, and has developed internal contests and incentive programs

On-site supplier-led training remains the aftermarket’s preferred method, but scheduling these courses can be difficult due to supplier availability.

around online training to challenge employees to learn. Turning to online training also allows distributors to fall back on legwork done by their respective marketing group. VIPAR Heavy Duty and HDA Truck Pride each house comprehensive training libraries on their websites. Built in cooperation with suppliers, these libraries are organized by vendor and product category so distributor employees can easily search and find the training materials they want, the groups say. “Training has always been one of our pillars. We believe our members are most successful if they are highly trained on what they are doing. Any training modules we can offer and make accessible to them helps them do that,” says Nikki Paschall, marketing programs manager at HDA Truck Pride.

For as long as I’ve been in the industry training has always been one of those things that was highly ranked as an industry need. The demand has always been there. – Jeff Paul, VIPAR Heavy Duty vice president of marketing

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“For as long as I’ve been in the industry training has always been one of those things that was highly ranked as an industry need. The demand has always been there,” adds Jeff Paul, VIPAR Heavy Duty vice president of marketing. “The website allows us to communicate what is available, and get that mission critical information to [the distributors].” When in-person training is preferred, scheduling looms as the biggest concern. Karon’s reference to vendor availability is a real problem — some suppliers have scaled down their on-site education in lieu of online portals, while others are booked solid for months. And even when a training date is finalized, deciding whom to train, and when, can be an issue. Ryan says Point Spring’s quarterly sales meetings are two identical meetings held on back-to-back days so “half our guys can come on one day the other half can come the next day.” Parts for Trucks Product Manager Robert Siddall says his company has had success with “lunch and learns,” where, like Ryan’s meetings, employees rotate through the training so a store isn’t forced to shut down. That’s one area where all distributors

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agree — training that closes a store is counterproductive. There’s also the issue of turnaround time. For a distributor trying to educate salespeople about several supplier lines at once, scheduling individual courses with each vendor could take months. There’s no substitute for hands-on learning, distributors say, but onboarding a new line and then being forced to wait months for training is a frustrating affair. Fortunately, this is one area where a solution may be materializing. Last year GenNext HD and the Commercial Vehicle Solutions Network (CVSN) joined forces to create the Distributor Training Expo, a two-day training convention that allows distributors to send counter and sales professionals to meet and learn about the products they sell from the companies who produce them. The event has earned high marks from distributors and vendors alike in its first two years, particularly for its straightforward focus on educating front-line sales professionals. “When our guys came back their feet were 10 ft. off the ground,” says Karon. “It was clear it was important to them that our company was willing to invest in them.”

Is self-training an option? Another training investment strategy that’s proving valuable in today’s aftermarket are product and/or training experts. Filled internally or through outside hires, these positions allow a distributor to select an employee to receive all education and training, and then rely on that expert to convey what he’s learned to his colleagues. Ryan says Point Spring & Driveshaft tried this for the first time when fracking started taking off in the company’s area. He says Point Spring’s sales person who

This year’s GenNext and CVSN Distributor Training Expo featured nearly two dozen suppliers and trained 175 front-line sales professionals.

was most familiar with the natural gas market volunteered to hit the road and train his colleagues about its new customer base, and that over time his role expanded to full-time trainer. “If we want to bring on a new product, he’s trained on it first,” Ryan says. Parts for Trucks hasn’t tasked one employee to all corporate training, but Purchasing Manager Chester Henneberry says the distributor does rely on product experts. Typically plucked from the company’s outside sales team, these professionals operate as training specialists for their coworkers in their area of expertise.

What did you learn? There’s also the matter of monitoring training to ensure the methods being used are productive. If employees are tuning out or not understanding a trainer, there’s no reason to use him again, Willis says. “We like to get feedback from our people because if you bring in somebody that’s not good, you want to know ‘Hey, that wasn’t a useful class for us,’” he says. “You don’t want to repeat that mistake.” Candid conversations and posttraining surveys are obvious methods for acquiring feedback, but Willis says his

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favorite place to see employee growth is the bottom line. Good vendor trainers don’t just provide knowledge, they boost sales. “I think there are times where a salesperson might not know a product line that well. Then they learn about it. They get to understand it. They feel more comfortable selling it,” Willis says. “It’s not that they weren’t trying, they just didn’t know the potential.” Measuring info retention is another area where online training is valuable. Some supplier training portals feature quizzes students must pass to earn credits, and track those test results to measure training effectiveness. Paschall says HDA Truck Pride’s soon-to-be-updated website will feature a full training tracker so distributors can see at a glance where employees are struggling or thriving. But no matter how a distributor decides to train, distributors say the end goal should be the same. To maximize learning opportunities while maintaining operational effectiveness. “The real challenge for us and distributors is to find how to administer training that is least disruptive to day-to-day operations,” says Paul. “You still have the serve the customer in front of you.”

By Jonathan Willis, Associate online editor jonathanwillis@randallreilly.com

Sales & Marketing

D is c

oun

Donâ&#x20AC;&#x2122;t

overdo it No magic formula in setting promotional prices

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Sales & Marketing

ne of the secrets to business success is pricing your products properly.

Making sure your customer needs and your customer’s ability to buy are in line with one another is key to long-term success. Pricing products correctly can enhance how much you sell. Get your pricing strategy wrong and you may create problems that your business may never be able to overcome. There are several different types of pricing strategies for the aftermarket to look at, especially when it comes to pricing items that are placed on sale or listed as promotional items. There’s no one proven-to-be-true, formula-based approach that suits all types of products, businesses or markets, but finding the right formula for your business is essential. Pricing a product to be a sale or promotional item usually involves considering certain key factors, including pinpointing your target customer, tracking how much competitors are charging, and knowing what inventory you have in stock. Over and underpricing products can create consequences. Underpricing leaves no room to make a profit, while overpricing can create an overflow of unwanted stock. But, that inventory can lead to great sales opportunities as well. Rolando Martin, marketing manager at River City Truck Parts says the company’s monthly sales promotion is based on what items they have in excess. “We have found that working through our surplus inventory provides us with great opportunities for our customers,” Martin says.

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“Our monthly promotions allow us to determine the right price, or which to keep moving inventory that we have particular products should be placed as a an excess supply of and it provides good promotional item. pricing points for customers.” Mike Lerach, parts sales manager at Pricing sales products for too low a Blaine Brothers, says that company has to cost can have a negative impact on an consider many aspects when determining aftermarket supplier’s bottom line, so be which parts are needed to be listed at a careful when setting initial price points. sales or promotional price. On the flip side, overpricing a product “There is a lot of different things to can be just as detrimental since the buyer look at,” Lerach says. is always going to be looking at your Many are based on a company’s geocompetitor’s pricing. graphical location. “Accurately pricing your product is critical at any point,” says Laura Wilson, a business consultant and faculty member at the University of North Alabama. “Many businesses mistakenly underprice their products attempting to convince the consumer that their product is the – Rolando Martin, marketing manager at River City Truck Parts least expensive alternative hoping to drive up volume; but more “A lot of the items that we feature are often than not it is simply perceived as seasonal. For example, we will be getting ‘cheap.” our winter products such as dryers, tire She says most consumers want to feel chains, chemicals, things such as that, they are getting their “money’s worth” ready soon.” and most are unwilling to purchase from Lerach says the goal is to have winter a seller they believe to have less value. seasonal promotions in place by the beBusinesses also need to be very careful ginning of the fourth quarter each year. they are fully covering their costs when Preparing for seasonal promotions pricing products, especially promotional holds true for summer items like air conand sales items. ditioners, Freon and brakes as well. “Reducing prices to the point where “There are areas in the Midwest you are giving away the product is not where heavy equipment can’t run until usually the best long-term solution,” March because of the frozen ground Wilson says. during the winter, so we run our brake There are many methods available promotions and other items that those

Our monthly promotions allow us to keep moving inventory that we have an excess supply of and it provides good pricing points for customers.

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Sales & Marketing

guys need to get back and running,” Lerach says. “We base most all of our promotions on the calendar so we can plan around the winter and what those customers need and the same for the summer.” Randy George, marketing manager at Betts Truck Parts & Service, says that having eight locations spread from Phoenix to Portland creates some geographic planning, but says that seasonal planning is a must. “Each location has different specific issues ranging from the weather in Arizona to the mining areas in Oregon, but we try to offer specials that appeal to customers in all the areas that we serve,” George says. “The first thing that we look at is what is top of mind for the customers and that is usually based around the seasons.” Wilson says that setting appropriate initial price points can determine how to set prices on promotional items.

Many heavy-duty aftermarket suppliers and distributors use monthly, or even bi-monthly and weekly, specials on certain products.

their costs and underprice or literally factor in all their costs and expect to make a profit with one product and overcharge.” She stresses all suppliers, dealers, vendors and distributors should constantly re-evaluate costs. “To sell it right, you have to buy it right. If you are having a hard time selling a product at an acceptable profit, the problem may be that you are not buying the product right. It may be that your cost is too high rather than your price is too low” she says. “You should always be testing new prices, new offers, and new combinations of benefits and premiums to help you sell more of your product at a better price.” Test new offers each – Laura Wilson, business consultant and faculty month. Raise the price member at the University of North Alabama and offer a new and “A fundamental tenet of pricing is that unique bonus or special service for the you need to cover your costs and then customer. Measure the increase or defactor in a profit,” she says. crease in the volume of the product you “That means you have to know how sell and the total gross profit dollars you much your product costs. You also have generate. to understand how much you need to That opens the door to raising and mark up the product and how many lowering prices for your products. you need to sell to turn a profit. Many Keeping an eye on what distributors businesses either don’t factor in all and manufacturers are releasing also

You should always be testing new prices, new offers, and new combinations of benefits and premiums to help you sell more of your product at a better price.

T R U C K PA R T S & S E R V I C E | J u l y 2 0 1 7

provides opportunities to offer new sales and promotionals. “Manufacturers launch new products and we try to use those as promotions in the market so we can we see the fleets’ interest in them,” Lerach says. “Those are often good promotional products to offer.” George says many Betts customers know when particular manufacturers run their specials and promotions so they base their buying needs around that. “We don’t always know if a new product is going to take off immediately,” he says. “Some of them take time to catch on as more and more people use them and tell others about them, so offering specials keep them on top of mind.” It’s also worth noting you can watch your competitors’ products and pricing when looking to offer promotions, Wilson says. “It’s helpful to look at the competition — after all, your customer most likely will, too,” she says. “Are the products offered comparable to yours? If so, you can use their pricing as an initial gauge. Then, look to see whether there is additional value in your product or look to see how you can price it to remain profitable. The key to pricing, whether it’s a sale item or not, is to make sure that you keep the profit margin that you need.”

Marketplace

The Buzz The five hottest products as determined by readers of truckpartsandservice.com

Paccar software diagnostic tool Snap-on introduces the EEHD867034 PRO-LINK Ultra Paccar Engines v.1.0 software, the latest addition to its extensive line of PRO-LINK Ultra diagnostic software. The EEHD867034 provides diagnostic capability for Paccar MX electronic engines EPA 2010 and EPA 2013. The system reads active/inactive faults, clears faults and provides engine data and after-treatment support. It also performs 21 special tests, including DPF Regeneration, DPF Maintenance, Cylinder Performance and DEF system leak test, Snap-on says.

Wide selection of aftermarket products NEWSTAR has added an assortment of parts to its aftermarket product offering, the company says. The new products include headlamps, water pumps, leveling valves, battery cables, rib belts, filter regulatory assemblies, toolbox hood latches, side marker lamps and safety valves. The products fit various Volvo, Peterbilt and Freightliner tractors, as well as Navistar, and Cummins engines.

Various vehicle, engine sensors Dorman HD Solutions has released a new crop of former dealer only parts. The products include a nitrous oxide sensor for Blue Bird, Freightliner, Sterling and Cummins ISB models, more than five bumper cover SKUs for Freightliner trucks, water in fuel sensor for specific Peterbilt and Volvo models, more than 25 SKUs of fuel tank sending units for Internationals and a turbocharger drain tube for Mack and Oshkosh Motor Truck Company vehicles.

‘Rechargeable’ airless tire Michelin has debuted an airless, connected, “rechargeable”, customizable and all-organic concept tire, Vision. A wheel integrated with a tire, Vision was produced through a design process and co-constructed with users from bio-sourced and biodegradable materials. Michelin says 3D printers allow designers to apply a precise amount of rubber on the tire, thus extending its life depending on needs. Tread design is optimized and depth reduced to reduce the tire’s thickness and make the tire more efficient in terms of materials.

Multi-length LED light bars Optronics International introduces three new LED Light Bars. The new lamps come in 13-, 22- and 33-in. lengths, and each LED Light Bar projects a combination spot/flood beam pattern. Optronics says the light bars can be

used for a wide range of applications, on a broad assortment of vehicles and in almost any environment. The new lamps give users total flexibility and deliver from 3,700 to 7,500 lumens depending on their size. Each lamp comes

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with a no-hassles, one-diode lifetime warranty and Optronics says it will replace the lamp if even one diode fails.

Marketplace

Torque multiplier fastening tool

Steel friction pistons

Ingersoll Rand says its QX Series Cordless Torque Multiplier fastening tool is engineered to achieve up to 1,475 lb.-ft. of torque and facilitate accurate, repeatable bolting for torque-critical joints. The tool has a brushless motor paired with a Norbar gearbox and is available in five different combinations of torque and speed capability ranging from 30 to 1,475 lb.-ft. and five to 45 revolutions per minute.

AFA Industries now offers forged steel friction welded onepiece pistons for Caterpillar C-15 engines in its In-Frame and Complete Overhaul Kits. AFA says the new piston’s design features a stronger ring land for better ring seating and our exclusive formula Manganese Phosphate coating that insures less wear on break-in and additional protection against high Sulfur diesel fuel corrosion. The company adds it is important to have the exact engine serial number when specifying these kits as some of them are for 550HP and below engines.

Off The Line Spotlighting a new OEM innovation

Flywheels, clutch install kits World American has introduced two new crops of flywheels to its aftermarket product line. The company says the new OEM-quality flywheels come with ring gear included, no core charge and a 24-month warranty. The parts fit applications for Caterpillar, Cummins, Ford, Navistar, Mack, Volvo and Detroit engines. They are in stock and ready to ship today. World American also has released three clutch install kits: the K2468; K3600 and K3601.

Starter and alternator line expands Volvo debuts new VNR tractor Volvo Trucks North America has introduced the new model of its Volvo VNR The new VNR model, available in the VNR 300 daycab, VNR 400 flatroof sleeper and VNR 640 mid-roof sleeper, is ideal for urban areas, pickup and delivery, liquid tankers, dry bulk, flatbed and other regional haul applications. The new VNR model features a new aerodynamic design, work environment, improved engine and transmission options, gearing

and loading efficiencies, passive and active safety systems and integrated connectivity, Volvo says. “We are very pleased with the positive customer response we’ve seen since we launched the Volvo VNR,” says Göran Nyberg, president of Volvo Trucks North America. “Our order intake, especially for the VNR 640, has exceeded our expectations, and we look forward to delivering the truck that meets all of the unique demands of the regional haul market.”

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The LoadHandler Power Products all-makes starter and alternator line now offers six new products. The new medium- and heavy-duty LoadHandler alternator series now includes 140-, 150-, 160- and 200-amp coverage in several brushed and brushless designs engineered specifically to meet many applications. The new LoadHandler starter series uses a hightorque, high-efficiency design to provide fast, reliable starting power and includes heavy-duty gear reduction and straight drive starters, precisely engineered for common medium- and heavy-duty applications.

Marketplace

A/C service unit

Forklift scales

MAHLE Service Solutions introduces its ArcticPRO ACX1250 air conditioning (A/C) service unit, which the company claims economically services R1234yf vehicles. According to MAHLE, the ACX1250 is designed to increase technician productivity due to its fully-automatic program to recover, vacuum, leak test, and charge without command for ease of operation. The unit has numerous built-in safety features for the secure handling of R1234yf refrigerant. In addition, the unit comes with a 4.3 inch VGA resistive touch screen. Additionally, MAHLE says the ACX1250 meets stringent certification requirements including: SAE J2843, SAE J2099 and UL 1963.

Fairbanks Scales, Inc., introduces its new FH and FHX Series hydraulic forklift weighing systems. The FH Series is designed for check weighing goods for overload as the goods are moved onto transport trucks or warehouse racks. Easy to install and suitable for rough applications, the FH Series is compatible with hydraulic forklifts with capacities up to 20,000 lb. Also available is the FHX Series, which Fairbanks says is a high accuracy weighing system for hydraulic forklifts and reach trucks. Ideal for check weighing, kitting, picking and general weighing, the highly accurate FHX Series is also suitable for use in combination with (paper roll) clamps and rotators. The FHX offers easy, costefficient installation and is compatible with hydraulic trucks that have capacities up to 20,000 lb., the company says.

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