Question

Topic: Strategy

Marketing To Smaller Workshops

Posted by Anonymous on 5/8/2005 at 11:53 AM ET 250 Points
Supplying lubricants to smaller workshops by the company distributor has the problem of high break even points, the smaller workshops dont stock lubes and the margin that he gets if he buys from the retailer is very small for both the workshop and the retailer so there is no "push" . Marketing the product directly to the workshop atleast gives him a greater margin however small. These workshops dont have idle cash(they want credit which isnt possible since their offtake is so small) and are scattered far and wide . Any strategy to target such a segment and a route to market for the same.
Thanks
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RESPONSES

  • Posted by Chris Blackman on 5/9/2005 at 12:46 PM Accepted
    Maybe look at combining the recycling of used motor oils with the replenishment of workshop lube stocks? (Even if only small quantities held)

    In other words combine the cost structure of the collection service with the cost of delivering the new lube oils...

    Just a thought.

    Sounds like a tough business to make a buck!

    ChrisB
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