Radiator sales on the rise as financially pressured motorists keep their older cars
"It's a word-of-mouth business based on service and product warranty – the shop has to stand behind the work," says Stephen Spivey, program leader for the automotive division at Frost & Sullivan.
As the economy continues to tank, analysts are seeing shops conducting more radiator replacements in a slight upward reversal amid a traditional pattern of level sales figures. "The market as a whole usually doesn't move very much – this is just a trend that's been happening in 2009 and 2010," Spivey reports.
|
After every two years or logging 30,000 miles, whichever comes first, the radiator fluid needs to be replaced in order to prevent corrosion, according to Garg. "As the economy lingers, vehicle owners have started to cut auto maintenance and service," she says, and "therefore radiators expect to see faster wear and tear and will require replacement."
"There is deferred maintenance," Spivey concurs, "and deferred maintenance can drive parts sales" as cooling systems spout leaks from under-filling and infrequent flushes.
Mindful of a motoring public that doesn't differentiate between which companies are manufacturing radiators, "product differentiation must be achieved by introducing new features or value-added services," says Garg.
"In addition, the ability to address customer needs within short turnaround times will promote the establishment of trust and loyalty," she notes. To reach repairers and retailers seeking the best options for serving their customers, "offering higher discounts, improved service levels, easy cataloging and real- time inventory systems will ensure business progression."
"If you're a shop you're probably promoting a brand, but a lot of retailers and program groups are going with private label," Spivey explains. "A lot of the installers are starting to move to private label because their customers are not aware of brands. They get the radiators from the jobber store."
|
Financially tapped-out consumers are increasingly more willing to consider stop-gap methods such as stop-leak chemicals and remanufactured radiators, according to Spivey. "There are a lot of substitute products out there," he says.
However, it is advantageous for repairers to gently instruct your customers on how a car's cooling functions and the importance of the related parts – a strategy that can also boost the ticket. "You're promoting the whole system," Spivey observes, "so you may want to have them purchase a water pump or other components."
For customers eying a proposed radiator purchase for the presence of copper construction, nowadays that metal is mostly used for heavy duty applications. "Almost all radiators for light duty passenger vehicles are made of aluminum with plastic tanks," says Spivey. "Aluminum doesn't get as much corrosion as copper and it weighs less."
"It's a word-of-mouth business based on service and product warranty – the shop has to stand behind the work," says Stephen Spivey, program leader for the automotive division at Frost & Sullivan.
As the economy continues to tank, analysts are seeing shops conducting more radiator replacements in a slight upward reversal amid a traditional pattern of level sales figures. "The market as a whole usually doesn't move very much – this is just a trend that's been happening in 2009 and 2010," Spivey reports.
|
After every two years or logging 30,000 miles, whichever comes first, the radiator fluid needs to be replaced in order to prevent corrosion, according to Garg. "As the economy lingers, vehicle owners have started to cut auto maintenance and service," she says, and "therefore radiators expect to see faster wear and tear and will require replacement."
"There is deferred maintenance," Spivey concurs, "and deferred maintenance can drive parts sales" as cooling systems spout leaks from under-filling and infrequent flushes.
Mindful of a motoring public that doesn't differentiate between which companies are manufacturing radiators, "product differentiation must be achieved by introducing new features or value-added services," says Garg.
"In addition, the ability to address customer needs within short turnaround times will promote the establishment of trust and loyalty," she notes. To reach repairers and retailers seeking the best options for serving their customers, "offering higher discounts, improved service levels, easy cataloging and real- time inventory systems will ensure business progression."
"If you're a shop you're probably promoting a brand, but a lot of retailers and program groups are going with private label," Spivey explains. "A lot of the installers are starting to move to private label because their customers are not aware of brands. They get the radiators from the jobber store."
|
Financially tapped-out consumers are increasingly more willing to consider stop-gap methods such as stop-leak chemicals and remanufactured radiators, according to Spivey. "There are a lot of substitute products out there," he says.
However, it is advantageous for repairers to gently instruct your customers on how a car's cooling functions and the importance of the related parts – a strategy that can also boost the ticket. "You're promoting the whole system," Spivey observes, "so you may want to have them purchase a water pump or other components."
For customers eying a proposed radiator purchase for the presence of copper construction, nowadays that metal is mostly used for heavy duty applications. "Almost all radiators for light duty passenger vehicles are made of aluminum with plastic tanks," says Spivey. "Aluminum doesn't get as much corrosion as copper and it weighs less."
About the Author
James Guyette
James E. Guyette is a long-time contributing editor to Aftermarket Business World, ABRN and Motor Age magazines.