Saturday, 05 May 2007 22:25
Aftersales-Oriented Instead Of Sales-Oriented
This year, the sales volume within automotive industry is lower than the previous year. In parallel to decreased vehicle sales volumes, competition among manufacturers and among the models of the same manufacturer is getting firmer everyday. The results of this firmer competition can be observed by everyone who is aware of the conditions around: authorized dealers have less profit, make sales at a loss, tell about their complaints and problems and try to increase their service and spare parts income in order to compansate their loss resulting from vehicle sales. However, while working with high profit margins during high inflation rate periods, owners of authorized dealers used to perform service and spare parts operations since they were forced by distributors. For this reason, they dont have sufficient knowledge and/or experience in this field.
As a result of lack of experience and knowledge, authorized dealers beat a path to the doors of distributors lately and demand support for aftersales service and spare parts, because they know that the current inflation rate is much more lower than the past and, also, vehicles are ordinary products since almost all vehicles have similar features and characteristics. In this case, they can see the decrease in their profits as a result of price battles. Thus, they realize that service and spare parts business within aftersales field can make them survive and determine a strategy for self-development within aftersales field.
Is it really possible for distributors to help authorized dealers which adopt that stratregy? Can authorized dealers leap forward concerning service and spare parts? We can ask many similar questions. However, the answers will be “no” unless the authorized dealer really wants to change. In other words, the authorized dealer will not be able to be successful unless it decides to develop aftersales services.
So, which steps should authorized dealer take under those circumstances?
First of all, authorized dealer should be totally adamant and dedicated. The boss should be adamant and be a role model for the employees. Employees shall look into the same direction where the boss looks. When the boss starts to question aftersales services, all employees question those services as well.
An adamant boss shall also understand every matter. Since the bosses are used to focusing on sales procedures, they do refrain from service and spare parts fields. Human beings usually avoid from unknown. However, the boss shall not refrain from service and spare parts fields but roll up their sleeves and enter into business.
The most crucial point after entering into business is not to get lost among complicated subjects. Since the problems differ for each dealer, each boss should take different measures for his company. There are many different works, processes and procedures available within the company, but some of them are extremely crucial. For this reason, the boss should create a reporting system to follow up those crucial factors and share those factors with the employees. On the other hand, the number of the factors to be followed up shall not be too much, otherwise, the company shall not be able to focus on its core business and get lost among countless data. It shall not know which factors should be improved in order to move forward immediately.
Revenues should be increased and expenses shall be reduced after creating a reporting system. The boss and employees shall move forward together in order to reach those goals. The most crucial question to be asked is what should be changed to increase the revenues. Analysis of the current revenue level can provide the answer of the question above for us. But, habits become a part of the game in this stage. Most common rejections are “We have never done this in this way”, “It is not the way to perform this.” “X company has tried this but failed.” etc. The boss should be astute, support the team members and ensure the new ideas to be applied. It is not important if those trials fail, because, we , at least, can see whether new ideas are beneficial or not. The company is learning in spite of time waste. Many different aspects can be realized during trials. Many different points, which are not known by others, are added into the company’s literature.
Increasing the revenues also contains stopping to make business at a loss. Many facts such as the number of the vehicles which have servicing service, spare part sales etc are followed up by means of daily reports. However, the availability of profit is usually not followed. In fact, the main reason of this fact is that the boss does not want his employees to know how much he earns. Employee compares himself by means of different parameters under those circumstances. After all, everybody wants to be successful and reach a higher performance level than the previous month. That is why, the boss should explain his employees that profit is not something wrong and get them work on a profit-oriented basis.
The main goal is to prevent wasting resources while increasing revenues. For instance, attitudes like “Master Ahmet has been working here for 10 years, he is my very own man, he has been spying for me” shall be stopped, effective workers shall be kept, lazy and ineffective workers shall be sent. Limitation of telephone, water, electricity, advertising, promotional expenses and other similar activities cause remarkable decrease in total expense level.
Micro-level management as a result of taking crucial success factors into account provides a remarkable advantage while increasing revenues and decreasing expenses. Thus, the boss learns and adopts aftersales service and spare part businesses, and, also supports his own team.
The boss, as a role model, accelerates the process of transformation. As you know, corruption always starts from the top. If the boss chuck his money around, employees cant be expected to save money. But, if the boss is available in the service area to meet the customers and also make an effort for customer satisfaction to make improvements and development in this field, develops strategies to increase the volume of spare parts sales, in other words if he protects and cares about his business, the employees would be able to realize those efforts and try to make their best.
A company without human is nothing. In case of availability of qualified and talented employees who are open for development, the company, also, would be qualified and open to development. Therefore, to select appropriate employees, to assign them into appropriate positions and to send inappropriate employees out of the system clear the obstacles on the way for companies. Passionate employees make everyone passionate. Passionate employees heat the blood of company whereas employees without passion freeze the blood of company.
The company requires and needs system with good performance. The importance of those systems is not obvious when everything is on the right track. Nevertheless, companies which have systems with good performance stand firm within economical crisis periods including economical contraction. Profitable companies without high stock level and with proper cash flow usually grows even in crisis periods. Creation of systems with good performance can only be possible by means of aiming to make proper business. Examination of the work thoroughly plays a catalyst role for creation and development of systems with good performance.
On the other hand, it is very crucial point to follow the developments within the market closely by both from boss and executives. To understand and realize the developments, see cause and effect relation, not to make business and get position with hearsay information are very crucial musts. Boss and executives, who are able to understand and make comments on basic compounds of economy and politics, always make a positive difference.
Bosses and executives, of course, can not and does not need to know everything. For this reason, experienced and trustworthy consultants are required. Even, the consultants are not able to know every single details within each company. However, an experienced boss wants a consultant for consultation of daily matters and future plans and getting support. The right and appropriate consultant both encourages the boss and supports him while taking decisions.
As a result; the boss, who wants to compensate the decreasing profit of vehicle sales with service and spare parts, should focus on aftersales activities. Then, he should determine criticial success factors in compliance with his expectations, to perform those factors, to create necessary systems, and reorganize his team. While implementation of the steps stated above, if the boss shall act as a role model, he will provide great support for transformation process.
