Taking the steps to increase your margin

Jan. 1, 2020
  AASA and MERA will produce a half-day special summit on Monday, Aug. 26, to address three key areas that suppliers can concentrate on to increase their margins.

The Automotive Aftermarket Suppliers Association (AASA) and the Motor & Equipment Remanufacturers Association (MERA) will produce a half-day special summit on Monday, Aug. 26, to address three key areas that suppliers can concentrate on to increase their margins.

The AASA MERA Special Summit is designed to provide the information you need to make change and begin the collaboration with your supply chain partners that all are looking for. Take the first step, attend the special summit and start the journey towards increased profit.

Have you ever heard the quote, “Now is the time for all good men to come to the aid of their country?” Most of us would assume the quote came from a war-time general or politician urging their charges or citizens to defend themselves from tyranny or take-over. What you may not know is that the quote is a derivation of “Now is the time for all good men to come to the aid of the party,” a typing drill originated by instructor Charles E. Weller in the 19th century.

Sometimes the most ambitious endeavors begin with a simple origination.

In the June 3 “Long View,” AASA president and COO Bill Long urged the supplier community to “take the first step” in establishing a dialogue with channel partners to address common issues such as warranty and product returns.

There sometimes comes a point in life and business when some things just can’t wait. Through our research, member interaction and industry events, we have identified three key issues that “just can’t wait until the next Vision Conference.” We are offering a special summit that will address these opportunities to help improve your margins on Monday, Aug. 26, at the Chicago O’Hare Marriott from 1 to 5 p.m.

The first opportunity is “Minimum Advertised Price.” AASA’s e-tailing special report, produced with Booz & Co. and released at the Vision Conference in March, noted that “Pricing at many levels will be pressured due to the greater transparency and lower costs provided by digital technology and commerce.”

Minimum advertised pricing allows the supplier to have greater control over prices both on the Internet and in other channels; however, there are many steps that need to be taken in order to ensure you are operating within the law. Arent Fox, AASA’s legal counsel, will give an update on what is and what is not allowed under “MAP” pricing and will explain other pricing alternatives that are available in order to help you maintain control of your pricing via the Internet.

NOTE: Arent Fox also will have a representative on site to ensure that anti-trust guidelines are followed. A copy of AASA’s anti- trust guidelines can be accessed at this link.

The second session will focus on "Your Changing Role as a Supplier." Booz & Co. and Paul McCarthy, AASA vice-president of industry analysis, planning and member services, will present the findings of our latest Special Study. The discussion will cover what suppliers could and should be doing in the future to add more value and differentiate.

This study, commissioned at the request of the AASA Board, will follow up on Aftermarket 2020, helping make the key take-aways from that landmark study implementable. Attendees will receive an advance copy of the report. The presentation will be followed by a roundtable discussion of senior industry executives discussing what they see as the future role of the supplier and how they believe their organizations will have to transform their value curve to increase both margin and the value they bring customers.

Last but certainly not least is (alleged) warranty costs. Bill Long pointed out in his article on June 3 that all channel partners are interested in reducing this wasted cost in the supply chain. While all identify this as a major issue, the rate continues to rise – why? Each channel partner points the blame in another direction other than themselves. We are proposing a forum that initiates the discussion within the supplier community that we can take to our channel partners to develop a long-term solution that benefits everyone.

Each journey begins with a simple step; AASA has targeted the key areas that will begin the journey towards increased margins and a sustainable, healthy aftermarket supply base.

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About the Author

Bill Hanvey | Vice President of Membership, Member Services at AASA

Bill Hanvey is the vice president of membership and member services at the Automotive Aftermarket Suppliers Association.

AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products. It is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members. “AASA, The Voice for the Automotive Aftermarket Supplier Industry”

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