In the competitive realm of the automotive aftermarket, the role of an entrepreneurial jobber is multifaceted, requiring a delicate balance between catering to core clients and strategically expanding the customer base.
Whether you own a single auto parts jobber location or manage a network of stores, success hinges on understanding the market dynamics and effectively prospecting new clients while nurturing enduring relationships.
In the pursuit of growth and diversifying your customer base to manage risk, it is crucial to identify potential clients who align with your business values and objectives. Look for characteristics such as growth potential, compatibility with your product offerings, and a willingness to collaborate for mutual benefit.
Many jobbers look to land business from the most established shops in their market. But there is also opportunity in working with emerging shops and working as a partner with them to build their business through coaching, technology, branding and overall shop experience to help that location grow and expand into the next top professional automotive shop in their trading area.
In the pursuit of growth and diversifying your customer base to manage risk, it is crucial to identify potential clients who align with your business values and objectives.
Recent data suggest that the number of automotive shops in Canada has shrunk over the last two years — by close to 20% — due to the impacts of rising interest rates, cost inflation driving up wages, rents and business services and increasing parts costs squeezing the price thresholds shops can charge to consumers.
In this environment, it has become ever more challenging in a trading area to think outside the box. It is increasingly difficult to develop effective strategies to grow sustainably and efficiently to avoid the desperation of selling into customers that do not align with the business’s values or using short-term programs to win business with unsustainable pricing methods. And other short-term strategies can drag a jobber down.
In addition to targeting mainstream markets, exploring niche segments within the automotive industry can be fruitful. Whether it’s catering to performance enthusiasts, light industrial & fleet segments, import or EV specialists, tailoring your marketing efforts and product offerings to meet their specific needs can unlock new avenues for growth.
Our parts business was successful in having various facets to the business where we were able to diversify our revenue streams. At one point, we serviced the traditional ASPs, import specialists, light industrial and fleet, paint and body and tools and equipment sectors. Many jobbers are habitual in servicing a core area of the aftermarket, but diversifying product segments as well as sectors can be an effective way to drive diversification.
In addition to targeting mainstream markets, exploring niche segments within the automotive industry can be fruitful.
Looking back at some time periods when the traditional repair business had slowed, our business was diverse and was supported by recurring revenue from industrial, fleet clients, and paint and body contracts we held.
Furthermore, offering value-added services can set your business apart from the competition. Whether it’s providing technical support, product customization, flexible payment options or going the extra mile to enhance the customer experience can foster loyalty and differentiate your brand.
Additionally, staying agile and adaptable in response to evolving market needs and consumer preferences is crucial. By continuously monitoring key performance indicators (KPIs) and soliciting feedback from clients and employees, you can identify areas for improvement and innovation, positioning your business for sustained success.
Successfully managing a jobber business requires a holistic approach that balances the needs of core clients with the imperative of diversifying the customer base. By understanding market dynamics, prospecting new clients strategically and nurturing enduring relationships based on trust, communication and quality, you can navigate the complexities of the industry landscape and position your business for sustainable growth and resilience.
Zakari Krieger is the Fix Network, Canadian vice president of Prime CarCare, responsible for the Canadian retail business, encompassing the Speedy Auto Service and Novus Auto Glass business lines
This article originally appeared in the July issue of Jobber News
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