In the last year, MEDCO has asked its team members and customers for feedback, and they have taken each response to heart. This feedback has helped to drive initiatives both big and small – like moving the Show destination from Philadelphia to Tampa this year (yielding record attendance) and creating new financing options with a host of opportunities for mobile dealers and their customers. We talked with MEDCO President Andrew Keim on October 12 at the Tampa Convention Center to learn about the highlights of this year’s show, to better understand the strategic change to their inside sales structure, and to review the details of their new financing program.
In response to team member feedback, this year MEDCO created an Inside Sales Consultant role to put a dedicated resource in continuous contact with just two or three outside sellers and their customers. “We’ve already seen tremendous value in creating these selling teams with our key customers. You get to learn more about your customers’ needs and better service them, we’re quicker to follow-up on any type of request… it has been a great cultural shift,” says Keim, who added that the reorganized structure also serves as a way to advance channel-specific sales initiatives.
This reorganization takes last year’s new marketing efforts one step further. “Last year we expanded our program and promotional efforts,” says Keim. “This is the next step, with a greater focus on a particular customer groups’ needs – the sales consultants are connected to a specific group of sellers and customers so they can help communicate the value of these unique opportunities.” To help meet this goal the company is investing heavily in business intelligence tools, such as a program for sellers that analyzes a customer’s business in relationship to trends, and their sales by category, to make recommendations for new categories or brands the mobile dealer isn’t currently selling effectively to their end user customers.
Turning to the show floor, it was clear that diagnostic products are still seeing a lot of growth in the industry, as are intelligent battery charging solutions, and the continued expansion of cordless tools. Lighting is always in demand and customers could find a lot of new efficient and innovative options on the exhibit floor.
“A lot of the fundamentals haven’t changed,” Keim added regarding new diagnostic tools and training. “We’re also seeing a lot of growth in the expansion of cordless tools, very often for applications that historically were never done in an untethered way. That has been a significant area of growth for the business and an opportunity for our customers. More tools in the heavy duty and collision repair markets are going cordless and have increased power. These are new sales opportunities for the mobile dealer channel.”
Despite the expansion and growth of cordless and diagnostics, the company that took home this year’s MEDCO Tool & Equipment New Product Award was Toolbox Widget’s Modular Tool Organizer. “It’s an innovative solution that helps technicians improve the way they can organize their tools,” said Keim. He added, “This product gives technicians the ability to design and redesign their toolbox, and it had significant demand at the show.”
Another piece of big news this year is that MEDCO has rolled out a financing initiative, which provides significant options and opportunities for independent mobile dealers – the fastest growing segment of MEDCO’s business.
Keim says the program was based on input from mobile customers who, over the years, expressed the need for, and importance of, a financing program, especially when it comes to selling higher ticket items. To address this need, MEDCO partnered with Time Payment and enlisted ten GEARWRENCH Street Team dealers to help create and launch the MEDCO Time Payment Financing Program. Training sessions for the new program at the show were well attended by Street Team members. Designed as a lease-to-own program, technicians are approved up to a certain dollar level based on creditworthiness and can add to their existing lease agreement for up to three months.
MEDCO’s Mobile Advisory Board of independent mobile tool dealers helped to create the finance program and then piloted the program for several months. Keim says the soft launch has shown that mobile dealers in the program are growing their business 20 - 25 percent, with much of the growth coming from large ticket sales like diagnostics or from the bundling together of smaller items. The program is also available for technicians with limited credit or credit challenges to help them to build credit, which makes it an ideal solution for dealers working with tech schools.
“This program was designed by independent mobile dealers for independent mobile dealers. So now, they can finance customers and make it easy for them to get the tools they need. Under the program, technicians can be approved for up to $15,000 in a matter of seconds, and dealers are paid within 24 hours of the product being sold to the end customer,” says Keim.
“There’s nothing better than finding ways to help your customers improve their businesses,” Keim commented. “Our independent mobile tool dealer can be a driving force towards helping a young technician to get the tools that he needs to be successful. When you build that type of relationship, it can be very long-lasting.”
Keim says online tool sales competition is a challenge that is not going away anytime soon, but smart initiatives can help to personalize sales offers and give independent tool sellers the edge. MEDCO’s MVP Program, created at the beginning of the year for independents, provides exclusive promotions from key suppliers that are only available to participants of the program and are not available online. MEDCO also continues to promote digital learning opportunities, and holds regular Mobile Advisory Board meetings where independent dealers can share tips on how to be successful in the marketplace.
Talking about the Customer Show in Tampa, Keim commented on the change this year to hold a major welcome event on Friday night that allowed all of the exhibitors to be a part of the evening, interacting with customers in a social environment. “We very much appreciate the support that suppliers show to us, and we believed it to be important to engage them in our major entertainment event,” Keim said. He added, “We refer to the show as a Customer Appreciation Show, and that appreciation extends to our valued suppliers as well.” This year’s game-themed welcome event allowed more than 1500 customers, staff, and vendors to relax, socialize, and have fun for a few hours.
“As a company, we are committed to listening to our customers, suppliers, and team, and then to finding solutions that address their business needs and growth objectives,” said Keim. “A big part of our success is acting on what we hear from our customers and being the conduit for our suppliers to help bring it all together for all of us. That’s why I always say that we win together, and we are proving that every day.”
Next year, the MEDCO Customer Appreciation Show returns to Philadelphia on October 10th and 11th.
