Program group members are filling their warehouses with mainly national label inventory, and are seeing sales increases thanks to improved product quality.
The majority of respondents — 54 percent — to the Aftermarket Business World Program Group Product Study report the bulk of their product inventory is national label parts, while almost one-fifth say their inventory is split evenly between national and private label products.
Like this article? Sign up to receive our weekly news blasts here.Seventy-eight percent of respondents saw sales increases in 2011, and of these, one-fifth reported they attribute boosts to the availability of better quality products. Nearly 80 percent say they expect to see continued sales increases throughout 2012.
Of those who saw decreased product sales last year, the majority attribute lacking figures to higher product prices and a decrease in the DIY market.
The majority of respondents report that using a full-line supplier is somewhat important, mostly because of the peace of mind, and improved product warranties these suppliers provide. Price and quality remain the most important customer needs, and when purchasing products, program group members prefer to order over the phone or online.
Gross margins in 2011 either increased marginally or held steady for most respondents, and this trend is anticipated to continue throughout this year.
See full results here.
METHODOLOGY: The Aftermarket Business World Program Group Product Study was fielded via email to product distributors who are affiliated with aftermarket program groups. The results were compiled using a small pool of respondents and are only intended to show general trends, not statistical certanties, in the market.
