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Wednesday, April 30, 2014

What can the diesel shops sell to make better profits?

I get asked this all of the time since I have been in automotive marketing for quite some time (over 25 yrs)?

It's not an easy answer, it is always easier to sell by price! That's the easy way out but your profit margins are going to be smaller because of all the cheaper products are driven by mass selling merchandisers who sell it for even cheaper!

It's no secret that the larger .coms or warehouses buy in quantity and get lower pricing than the normal diesel shops. It is hard for a shop to compete unless he can convince the customer his service is worth paying the higher price for the product.

Which brings up another good point, most shops have now taken the policy of you don't buy from them they will not do the repair warranty work when the product goes bad or needs fixing. I think this is a good policy to have in place because they have overhead where many of the others who are selling cheap do not. Plus it is really frustrating trying to fix someone else's mistakes or bad installation.

If you find a shop that does I'm sure you are going to pay dearly for it! 

A diesel shop has his knowledge to sell, that is very valuable in a world of bolt-on performance parts in the diesel industry. You can bolt-on a lot of parts but getting them tuned in correctly so all of them work together is the trick. A good diesel shop knows how to do this.

Another thing I tell diesel shops is look for the up-sell parts that the wholesalers are not carrying or selling as much. As I said it is easier to sell cheaper and it doesn't take much experience (phone sales). Now the shops have the experience so sell the better products that the wholesalers cannot sell as easy.

It's easy to buy a cheap China made exhaust shipped in from another country with weak hangers and poor pipes but it works right? But for how long and for a shop how many alterations do you have to adjust to make it fit? Sell the better product made in the USA, yea it costs a little more $50-75 but it will not rust, fit perfectly and it will sound better.

Sell the more advanced electronic fuel pumps now available instead of the brands everyone is pricing out low-end. Wholesale the low-end ones out and who cares if they don't work or won't return calls! Is this what our industry has become? One time sales, reap the profits and who cares about the consumer?

It's the only thing a local diesel shop can have is integrity in their work! Quality materials with quality work that they stand behind! 

Sell the better tires, wheels, brakes, exhaust, turbos, injectors, tuning, etc . . . 

Sure you will have to work at it, read about what is available, learn, become knowledgeable, but education is what the customer is wanting from shop owners. 

If they want cheap tell them to go to Wallyworld or some online place, if they want it done right tell them to come back after it doesn't work out. You know how to make it right - period.

Your profit margins will be higher and soon your shop will have trucks lined up out in your parking lot. I have seen the good shops work it and become very successful.

You can email me or call if you want to know more about quality parts in our industry that has higher profit margins, be happy to talk to you.

Tuesday, April 1, 2014

Made in America! Not sold in America. . . PRODUCTS that support DIESEL Motorsports!

I know everything you pick up is made in China . . .  but maybe if you look there may be quite a few diesel products that are NOT!

Even parts on our trucks are made overseas but many of the diesel performance aftermarket parts and accessories are made in the good ole USA!

I can easily go down our sponsor list and pick out many products made in the USA which supplies many with jobs here in our country. They are generally of much higher quality than products made overseas and they have a better warranty.

Yes they may cost a little more but it's like our daddy always said you get what you pay for! I have had many diesel shops tell me don't bring in any China parts, they are tired of replacing broken or replacement parts on their customer's trucks.

It's easy to find parts made in the USA, if you want to build with quality. Remember it may be giving a relative or a neighbor a job that will pay them local funds which allows them to purchase from local shops.

Take for example our Title Sponsor Flowmaster Performance Exhaust, their plant is in Sacramento CA where American materials are bought and used in production. There are a lot of diesel exhaust out there but their pipes are made in Mexico or China and who knows where that metal comes from for production. Somebody called me last week and asked how come their products were priced higher? I told them look closely, is the other brands stainless steel so they don't rust out in our harsh winters? Or are they welded heavy for extreme use and do they cut the drone out of the cab? They replied well now that is brought to my attention, once I add all of the extras to the other brands they are just as much and not made in the USA!

Same goes for many of our sponsors products such as Fluidampr which is made just outside of Buffalo NY, I have been there a few times and it is impressive to see them build our dampners! All made in the USA with American materials. This company had people in from foreign countries asking about building products for their vehicles, imagine that other countries coming to ask for American products!

Fuelab diesel lift pumps are made in Illinois just outside of St Louis, assembled and machined in their town the pumps are a signature of quality when it comes to delivery of fuel to Injection Pumps. If you ever need something you are talking to one of the people who work on the pumps not some foreign telephone answering service.

South Bend Clutch is in South Bend IN and I have been there many times to watch the workers hand build the clutches we use all Summer long for pulling. Family owned they stand behind their products, I have seen Peter replace clutches that have been used and abused just so he can say we have another satisfied customer. They and get that from a big National firm with foreign made parts!

CRC products are made in a huge production facility outside of Philadelphia, PA, where the solutions, cans, and bottles are made of top quality materials. How many years has Brakleen been in our garages? Now they make diesel products such as injection pump and injector cleaner, Emergency De-gel and diesel stabilizer. I know they just celebrated someone who had worked and retired there after 38 years of service and they even sent a limo to pick him up on his last day! Made in America and proud of it!

K&N is located just outside of Los Angeles CA and they make their air intake systems for the entire World right there with American workers. Designed, tested and manufactured in the same plant that takes up quite a bit of real estate in CA. The name has been the original air intake specialists for many years of top quality products who even offer a vehicle guarantee. Who else does this if they didn't believe in their quality.

Many of our sponsors products carry an endorsed status from DIESEL Motorsports and competitors who have tested them for quality. Many of them made in the USA! Think about it when you are given choices next time, price over quality, price over made in the USA, - it will make a difference in more ways than one!