Articles

Publication: CAT: Car Aftermarket Trader

3 January 2022

Holidays, getaways and breaks from the ‘daily hustle’ are invaluable and vital for self-growth as we take time away from routine monotony that can suppress creativity, and I find New Year a great time for this, as the year’s business reaching the end of one chapter and a new start to the next. 

I was lucky enough to take a break in the form of a safari recently, and that got me thinking about a completely different kind of CAT – namely a lion. In my mind, the king of the jungle has personality characteristics that we may benefit in adopting as business practices – including building our brands and product portfolios.

Leadership

Leadership is where it all starts. Whether you are the company’s ‘Top Cat’, departmental head or manager, you have teams looking to you for guidance. You will lay the path to be followed. In this case, we must understand and communicate clearly what our brand represents. What its purpose is and be clear of its values. The importance cannot be overlooked and the knowledge not assumed. 

Brands executed correctly will hold huge value for our businesses and offer that all-important barrier to entry. A resource unique to us that cannot be copied. It is our job as leaders to ensure that we communicate through the team our brand’s course. 

Power

With the brand’s story and course set, the power now lies with you to grow and exploit – albeit whilst remaining true to it. We seem to have been hit head-on with big fiscal challenges for the past fifteen years that have perhaps too easily pushed us to make brand and product decisions that without these headwinds are choices we would not have made. This is business though and we will be faced with them repeatedly. 

Making knee-jerk decisions can often be detrimental to our future success. For example, if you have a brand that you set out to be a leader in sustainable products but to save margin as costs are increasing around us have decided to use single-use non-recyclable packaging, you have not only stepped on your core brand value but totally kicked it into the bushes. Once a decision like this has been made it can be impossible for it to be forgotten. Imagine the famous smoothie brand substituting some costly fruit with a few spoons of sugar. It would definitely lose its innocence – perhaps forever. 

This may all sound easier said than done when we are against the ropes however we must remember that it is only a quick fix. The strength of a brand remaining true to its values is far greater. It separates itself from others and its story is the reason that it grows and maintains a loyal customer base for the long-term, rather than becoming A.N.Other. 

Problem Solvers

I am sure that we are all familiar with the phrase ‘me-too’. It is not only product and service but life related. In society we have a habit of wanting a little bit of what our peers have. The cake generally stays the same size however, so we are pinching a bit of someone else’s that they will inevitably work to take back. Strive to bake your own cake – or perhaps add a new tier. This is where product development comes into play. 

We often need generic ‘fat’ in our portfolios. It enforces our relevance with customers and helps the single—supplier model, however we will be recognised and remembered for what we do differently. Identify the gaps and needs not being addressed. We are not talking about humanity defining revolutions (necessarily) but exciting developments that offer customers the reasons they must buy into our brands.

Great Communication

Having now set your brand values and vision, created your unique product offering and have a clear vision of the path that will deliver your goals it needs to be communicated. Not only externally but internally. Too often in business we forget that our peers are ‘customers’. As product developers, sourcing departments and marketers it is our responsibility to ensure that colleagues are educated about products and services. Without this communication how will they sell what we have spent so much time, effort and investment developing and bringing to range. Remember, the whole is greater than the sum of its parts. It takes a team to deliver.

Brand takes pride of place in communications. Even launching the best product ever, doing so with our name at the forefront will deliver repeat business with customers associating the two and relating groundbreaking developments with our brand time and time again. Paving the way for future releases to be anticipated and well-received. Importantly, do not disappoint. It is not quickly forgotten. 

Respected

Build a brand to be admired. Have enviable values other aspire for. Take pride in what you are working tirelessly to create and watch as your baby grows and grows. A respected brand with products and services that deliver the same ethos will succeed as customers become to know what to expect and trust that time after time it will be delivered. 

Courage

Be dedicated and resolute. You have considered, planned and decided the best course of action that meets your objectives. Execute confidently and with determination for the best results. Not in an arrogant or stubborn way but taking stock along the way, adapting to the landscape. The goal remains the same albeit with route changes if needed. 

Grace

Whatever approach you choose, follow the lion. Be a credit to your team.

Publication: CAT: Car Aftermarket Trader

9 November 2022

Many reading this, me included, long for the day that they will have that million pound product idea. The one that will see queues of investors desperate to seize it and let us retire to a beachfront mansion. Unfortunately, reality differs from our dreams but that’s not to say we should not aspire for the ultimate to end up somewhere along the road to it and you never know – perhaps you will be the next Sara Blakely, inventor of  Spanx leggings. 

If we are not moving forwards, we are falling back, which is dangerous as the market has no time for stragglers. Unless we are at least keeping up, in real terms, we will get left behind. As business owners or purchasing managers, it is imperative that we are aware of product and service developments. Whether or not we choose to adopt them for our own companies, understanding what advantages (or disadvantages) they have, what market needs they address and how they may affect us are a crucial part of business intelligence. 

In my own history there were of course products where I was too late to the party – or the invite was entirely lost in the post. No matter what the size of your company, we all have limitations whether they be space, cash or time. We make the best decisions we can with the information and knowledge that we have at the time. 

A recommendation, no matter how you pursue new product development, is to do so with a little apprehension. You often hear about the ones that made it big but there are a lot more that did not who we do not hear about. Dip a toe, or perhaps a foot in the water, but do not jump in with both. Calculate and base your revenues and margins on a sensible volume when trying something new. If it is evolution not revolution you may be more bullish as you have sales history to draw from. I hope that everything you introduce is a resounding success but importantly live to fight another day if all does not go entirely to plan. Very few make it big overnight. Success normally takes time. Stick with it. If it doesn’t work straight away don’t be disheartened. Don’t throw money at it aimlessly but also don’t think because it didn’t work immediately it won’t. Give it a fair chance. 

Sell what you know to who you know

The easiest products to sell will be those that you already have an established customer base for. Have you considered what else your clients purchase from others and you could instead be their supplier for? You have a good relationship with them, they are receiving deliveries from you. Make their life easier and increase their spending with you. Without deviating too far from your core competencies, do you have a good understanding of another product group – or can you learn? Looking from the outside in, is there a gap that the current players have not filled where there is no or a low barrier to entry? As humans we are generally pretty good at noticing what others are not doing so well. Do some research with friendly, close customers. Get feedback on your ideas without openly saying exactly what they are. Yes, the idea that you have might be great but let someone else reassure you of the same. You do not necessarily have to be the first in the sector but do it better. Find the USPs. Create them and build in differentiation. The better you adapt and improve your product offering, the less you will find yourself competing on price alone. That is a one way street with one winner – the consumer. Not a bad thing when it’s you however as the seller, unsustainable – particular with the fluid cost pressures we continue to experience. 

React quickly to market change

A macro, medium to long-term view is important for new product and service development. An obvious, huge change in our sector is the exponential rapid growth of e-mobility solutions. Depending on what part of the industry you operate in determines timings. In this case, those whose business is in the new vehicle sector will be affected quicker than the aftermarket. If demand for electric vehicles continues, and it currently shows no signs of abating, we will definitely need to change our product offering. Whilst this may be a scary scenario that we are faced with it also offers a wealth of opportunities. A combination of both evolution and revolution, when we think laterally, there are great opportunities for us to adjust our product offerings to address the needs of the EV driver and their vehicle. What needs and wants do they have that differ from an ICE driver? What problems could they face? Starting with necessary solutions, such as what happens in a breakdown scenario, are often safer than luxuries that people choose to go without – particularly relevant when we are facing a consumer spending squeeze. Be sure to begin thinking and taking actions early. Do not be left behind – if you can help it. 

When you have decided on your new products and services, what brand do you introduce them under? If your business model includes growth of your own brand, do the new lines fit? Will they be respected, trusted and recognised with that name on them or are you better off sourcing from a known name? There are two strong schools of thought here and I am generally with the latter. A quick way to enter a new market is with the strength of an established name already active. Provided you pick the right one, they have done the work for you and the money (should) start rolling in immediately. Of course where there is an extensive R&D and stocking requirement, such as with parts, this may be the only realistic choice. An alternative option is own-branding the items. This does take more time, effort and investment however a huge upside, and the reason that I favour it, is that your (of course calculated) financial risk is rewarded by a growth in your brand value through greater recognition. You benefit directly from your sales and marketing efforts – and those of your customers. 

Whatever routes you choose to identify and develop new opportunities, be conscious of your competencies. By definition if you have a business you are a risk taker but do not try to be all things to all men. Do not spread too thinly fighting a war on two, or more, fronts. If you choose to enter an entirely new market or sector, have the infrastructure and support network in place without sacrificing and risking your bread and butter which will ultimately be needed to keep the new bit going. Evolution is essential for survival and hugely exciting.

Publication: CAT: Car Aftermarket Trader

5 August 2022

Who remembers anti-static straps and rear window louvres? Definitely not me, I am far too young but have read about them in history books! Top-selling automotive accessories look very different today than 40+ years ago – thankfully. There has been evolution as with any sector and any sustainable business must embrace and adapt.

The move from bricks and mortar to clicks was rapid. Most knew it was coming but the speed of transition took us by surprise. To begin with, I felt that there was some resentment in our industry. I would go as far as to say that the first online sellers, particularly on the marketplaces that are now part of everyday life, were looked down on. They were chancers. Fly-by-night traders who were not really in our sector and would not last. How wrong we were. Of course there were some that came and went however when we look back, were they in fact pioneers? Early adopters, opening the eyes of others? Today the vast majority of automotive accessory retailers will have their own eCommerce site or online presence as third-party sellers. It is a great revenue stream that when approached and managed correctly, with a full understanding of the associated costs, can generate healthy profits however not forgetting the purpose of physical shops. 

I believe that a retail store’s greatest USP is the store itself. An eCommerce site and online seller will never have its shop window. It has become very easy to de-stock and, seemingly, de-risk with daily and next day stock deliveries. However, in doing so the shop has nothing to sell to the consumer who wants to buy there and then. Yes the visitor may be on a reconnaissance mission. Getting physical with the item they have seen cheaper online, however more will be there because they want to walk out with a purchase. USP two. They have made the effort to visit, there is a high probability that if what they want is there and at a fair price, they will be walking out with it. After paying of course. We should be helping them do that. If they wanted to order it and come back to collect tomorrow it would have been a lot quicker doing so online without two trips. No matter how quick an online delivery service is, it cannot match instantly. 

Let’s go back to basics. Why are automotive accessories purchased? Two obvious answers are residual protection and upgrades. Most products that belong in a modern store will fall into one of these two categories. With the widely publicised squeeze on consumer spending, reduction in disposable income and double-digit inflation, it is easy to take the view that motor accessories are near the bottom of people’s priorities list. I take a different view in that the correct basket of product is on its way up.

I put top of the list valet, aka cleaning, products. Most drivers across the country will have something to give their car a freshen up. I wash my own cars and always have done. I tell people it is because I enjoy the process but really it is because I like to keep the tenner in my pocket! There is a sense of satisfaction also, watching the muck wash away. As the population searches for savings, an obvious choice is washing our own cars. Great impulse purchases also, waking up on a weekend and having the urge to get the hose out. We need to walk in and out of the shop, equipment in hand. This is also an opportunity to offer that little bit more than a supermarket may. Greater depth of range. In addition to the entry-level products such as shampoo, sponges and a chamois, here is an opportunity for upsell. Higher quality products. I am not talking about hundred pound waxes but polishes, microfibre towels and the like to achieve a superior result. 

Cars, and vans of course, are expensive. After our homes, likely to be our greatest expense. No matter how they are ‘owned’, whether outright, lease or another form of finance and both brand new or secondhand, we will by and large want to maintain their condition and in turn their value. Floor and ‘trunk’ mats are an obvious choice. Whether carpet or rubber, they are an accessory store staple. This can be paired with seat protectors. Particularly relevant for vans and seats or boots where pets are travelling.

As we keep vehicles longer and the average vehicle parc age increases, as a result of supply chain issues as well as financial pressures, we may choose to keep our cars ‘current’. In this age of technology, integration of our mobile phones with the infotainment system has become a prerequisite. There are excellent aftermarket solutions for Android Auto and Apple CarPlay. Some retrofit items that are quite elementary in their functionality can be installed by novices, however the feature-packed items require greater expertise, which offers an additional revenue stream of on-site installation. Something the worldwide web cannot offer. 

The pandemic opened a lot of eyes to great holiday destinations within our shores. Coupled with higher international travel costs and recent air travel disruption the ‘staycation’ and motoring holidays could see a permanent resurgence. There are legislated items for travel in mainland Europe. These are addressed very well by dedicated European motoring kits. In addition to these must-haves, everyday travel and safety essentials include tyre inflators, first aid kits and fire extinguishers. All have their place in the home too. As traffic increases on these product lines, great additions are more specialist items for leisure and camping that also come with a higher ticket price – which is always welcome. 

Let us not forget the everyday consumables. The staples. No motorist should be without screenwash and, when the weather calls for it, de-icer. Inelastic products that are often reactive purchases with the motorist needing them there and then. Low revenue but high volume and offer the opportunity for upselling and impulse purchases whilst in-store. 

There is an assumption that a physical store cannot compete with internet prices. Whilst there is of course truth in this, the gap is narrowing. Platform fees are high and increasing. The expertise needed for effective Search Engine Optimisation (SEO) is costly and paid advertising expensive. Added to this are delivery charges that have only been going one way of late and show no sign of abating. What this most certainly has done is price online sellers out of the lower priced products as once parcel costs are added, they are unappealing. I forecast market consolidation here and less choice, increasing the appeal of a traditional retail experience.

Publication: CAT: Car Aftermarket Trader

Summer 2022

16 July 2020


I feel as though I am writing a passage of my memoir. Something that my grandchildren may refer to in the future. 2020, when the world fell to is knees in the shadow of Coronavirus. Cycling with my daughter through our local town centre last weekend was like a post-apocalyptic world. Instead of zombies roaming and the remnants of looting, we passed fellow masked humans and boarded shopfronts. It looked, felt and was a little weird.


We have been largely at home now for almost four months and whilst, personally, the time seems to have passed quickly, March does feel an awfully long time ago. So much has changed in such a short period and we have all adapted at tremendous speed. It is amazing how flexible we can be when forced.


“The New Normal” has become everyone’s new phrase and although I have also found myself saying it, I have a different standpoint. Every day is a slightly “New Normal”. The difference through COVID-19 has been the pace. Business practices and businesses themselves that would have taken a decade to evolve did so in weeks and unfortunately many are living with the painful ramifications. However, have we witnessed in a few months what was inevitably upon us in the not too distant future?


Air travel, high speed trains and freedom of movement have broken down borders. Corporations have international offices with colleagues successfully working together digitally. Yet, we still commute to a local office to pass 9-5 in the same building. Have we now realised that this is not essential travel and we have the tools and technology available for successful remote working? The output can be measured. It could be argued that productivity in fact increases with staff having a better work/life balance through avoiding what is often a stressful commute. Was it only a matter of time until the ratio of travel to working hours became impractical anyway? Accepting remote working also allows companies to look further afield for the best talent and not be limited to a twenty-mile radius.


We have seen consolidation and rationalisation, devastating in cases. The easiest way for a business to improve its bottom line is cost reduction. There will always be periodic exercises in saving a few valuable pounds here and there however we have witnessed this in droves, to the extreme and simultaneously. Let us not underestimate the severity of what has happened. From one day to the next, without warning, the country closed. Expenses continued whilst sales stopped for many businesses. Drastic, painful decisions had to be made. Most companies are not sitting on huge cash reserves. We are a credit society. The wheel needs to keep spinning. Is what we have seen on its way regardless of “the virus”? Was a realignment on the cards and COVID sped up their dealing?  


What we have lived through in “lockdown” and social distancing has been less than half a year. This has not been a generational shift in behaviour. We creatures are habitual souls with good memories. Given the chance we will switch back to how we were conducting ourselves this time last year (provided you are reading in 2020). We will be back in restaurants, jumping on planes for international holidays and spending our hard-earned cash in the latest fashion outlets.


Whilst we are only at the foothills of pandemic fallout. We cannot say where on the economic chart we are because there is no modelling for this. There was no rehearsal. It has kept us on our toes and forced us to make changes. Traditional forecasting does not work but one thing is certain, it will get better. Let us not resist change but instead embrace it. Consumer behaviours have changed but spending will continue. Identify the opportunities. Take advantage of cost saving and strengthen your business’ sustainability. Be flexible and reap the rewards.

 1 March 2020


It is the start of the day, the week, the month, the year…. It is the end of the day, the week, the month, the year. Oh dear…. How often do we feel that there is plenty of time to complete a task? It can wait until tomorrow. It is not priority. We have ended up feeling foolish. Planning is key to time management and not limited to business, but essential in private lives too.


We are getting busier and busier. Whilst technology on the face of it should make everything easier it has somehow created extra work for us. Twenty years ago, we would place a purchase order with a single fax; now we exchange multiple emails. An advertising campaign would consist of a page in a printed publication; today, digital campaigns through social media and email with competitions and statistical analysis are a prerequisite. I am certainly not a technophobe however am acutely aware of the increasing demands placed on all of us, whilst profitability calls on increasingly lean headcounts.


Plan at the start, relax at the end.


Project management needs realistic timescales. Be honest at the outset to not disappoint at the end. Monitor all stakeholders, including most importantly yourself. You oversee the project and whilst managing your team is crucial, if you are not on top of yourself nobody else will be – until it is too late.


Break the project down. Piecemeal. Who is involved? What is involved? What time is needed for each task? Allow extra time and use the adage, “under promise and over deliver”. Individual jobs will almost always (always) overrun. Forecast the delays and do not think that you have full control because you do not.


Controlled pressure keeps us perky. We need time but not so much that we get lazy. Productivity is key and planning breeds this. When we have the benefit of time, we can make deliberate decisions – choices. Poor planning produces poor decisions. Desperation kicks in. We are running out of time and need to complete the project. Rather than making the best choices we are instead using those that are readily, and quickly, available to us. Balanced, researched and informed have been replaced by stress.


Planning therefore is not only important to deliver the project on schedule but arguably just as important to deliver the best results. Time offers reflection and consideration. Being entrusted with a role of responsibility is more than simply completing the task. It is completing the task to the best of our abilities and choosing the team, internal and external, that will help make it reality.  Projects are fluid and there will inevitably be bumps in the road that we cannot control. Revise the plan. Update the team. Report. Communicate. Plan for productivity and be in control of the pressure.  

1 March 2020


 From the light bulb to the iPhone. As product designers, innovators and entrepreneurs we aspire to have the vision and creativity akin to that of Mr Edison and Mr Jobs. Unfortunately, we are not all blessed with those talents naturally (we cannot be great at everything after all) but that does not mean we cannot use tools available to lead markets and set trends.


In business, as in society, we are constantly exposed to the activity of our peers. We want their customers, market share and success. The easy option is to replicate their activities. Buy the same products. Offer the same services. The “Me Too”. Strength of and preferred relationships may lead to the desired outcomes relatively pain free but that is not always the case. Next stop? Good old price. That is often a one-way street and can lead to a dangerous game of cat and mouse that erodes margins. Ultimately only one-party benefits and that is not you. Welcome, innovation. Most of us will never be an inventor enjoying a globally dominating market shift but that does not stop us being innovators asking a few simple questions.



Just because it has been sold that way for so long it does not mean it was right. Break the mould and open a new one – literally. Disrupt the market norms. Educate your target audience. Be brave. With the advent of technological (innovations) we are moving faster than ever. There is no time to stand still. Whilst everyone is moving forwards the static person is in real terms moving backwards – and fast.


When we have unique features direct price competition is less of an issue. If you want that product or service in that format you must come to us. Perhaps we are not in the fortunate position of setting new market prices but have avoided the race to the “Me Too” bottom. Ultimately, we should aspire to protect our Intellectual Property. We are not competing head-on today, and we do not want to be tomorrow either. IP protection takes many different forms and familiarising ourselves with these helps us understand how we should innovate to benefit from this security.


Many business owners will consider Brand as their greatest IP. That is almost impossible to copy, legally, once protected. When customers associate a particular product or service that they want and need with your brand you are on to a winner. From here however there are different considerations. You need to shield your brand at all costs. Your brand is a ticket to prolonged success provided the associations made remain strong. You must do everything right. No compromise. Good enough will not do. It is either right or not. Trusted and recognised brands can take generations to build but once they are you have a captive audience. It may often be the case that a brand has been based on a particular product or service but as new additions are introduced they benefit from the recognition and following almost immediately. The launch product or service may forever be the flagship but that has turned out ok for Coca-Cola.


A powerful brand coupled with healthy innovation is the winning platform to build a business with longevity. It has purpose, meaning and status. It is not “Me Too” but “Me Only”.

4 November 2019


The customer wants what we are selling, and we need them to buy it. What price should we set? What price is acceptable?


Salespeople thrive on winning orders. It’s the daily driver and a distinct measure of personal success. However, too often the temptation of underselling cannot be resisted in the desire to win. Does a salesperson have enough information to set the price? Is there an understanding of margin vs mark-up and gross vs net?  


Whether goods or services, costs are not black and white. Twenty percent “profit” sounds great when agreeing to sell the high-street retailer one-hundred thousand pounds of sidelamps. That’s twenty-thousand pounds “made” for the company. However, have other costs been considered? Does the salesperson know or understand what they are? Order processing, picking, packaging, loading, transport, financing, credit control, damages. These will fast reduce that impressive twenty percent.


Often only the most senior staff, managers and business owners will have the full picture. Only they can know what gross margin is required to reach net margin targets – and make sure all bills can be paid. Nobody wants an unpleasant surprise at year end, in monthly management accounts or when there is no cash at the bank. Those with all the cost information must establish structured price lists and control how they are used. Their job does not end with net margins however because we still need to be competitive. We have decided how much we need or want to make but is that a price the customer is willing to pay? This poses questions around whether or not the company is buying well or if the overheads are sustainable.


Formal price lists are not only a help for those at the top of course. They become easy and quick references for sales teams and customers. It makes quoting, selling and buying a much quicker and slicker process whilst avoiding disparate pricing between sales staff that may feel a little more generous than others.


So why not sell more at lower prices? Discounting has a dramatic effect on gross margin. Arguably incremental sales above and beyond budget can be at margins below those required but are they incremental? Are they one-off sales never to be repeated? Will the customer not expect the same price again? Will they slowly become part of the budgeted sales?


Generally, we all have limited goods and services to sell and we must at least sell the minimum necessary amount at management’s expected gross margin. In doing so we secure, before the inevitable everyday hiccups, the net margin targets and with a little discipline have the freedom to make a few of those fun additional sales. If not, there are no goods left to sell or time to complete those services. We run out of items to sell and cannot deliver the profits needed.


Nobody wants to lose an order. Being in business by definition means that you want to make a profit. Monitoring costs, prices and margins at every level as both buyer and seller is a constant task and one that needs close attention. They are moving targets. We want to win but must remember the stakes. Incremental sales and loss leaders are often key to business growth provided they are being decisions taken with both eyes open. A fine juggling act.