Question

Topic: Strategy

Spare Parts'vehicle

Posted by Anonymous on 3/15/2013 at 3:04 AM ET 250 Points
Currently I working at vehicle company as a spare parts sales in Asia. And I want to expand in the market due to the market have many used part, imitation part with the low cost. Do you have strategy to recommend to fight in this market?
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  • Posted on 3/15/2013 at 7:54 AM Moderator
    Who are your customers now? Why do they buy from you rather than from someone who sells the low-cost competitive parts? If you can answer this question then we can use the information to create a growth strategy for you.
  • Posted by Moriarty on 3/15/2013 at 8:05 AM Accepted
    You aren't alone in this - most European and US spares businesses face the same challenges.

    The problem is of quality. Are those cheap spares anywhere near as good and as reliable? Is their backup service as good? Do they offer a guarantee that they will replace the part if it breaks within a certain time or usage?

    Then you have to look at the kind of people who buy cheap parts. They have cheap cars too, and in the end they can wind up being more expensive to run because they need repairing more often. That simple fact won't worry them as they don't see it applying to them of course. So head for those people who rely on their car for their business - or businesses who are very cost aware. Because quality of service and quality of goods is always more cost-effective in the long run.

    So imagine the truck by the side of the road with a damaged axle bearing. Replaced just a few months before and now defective because someone saved $45 on the cost of the part. Spending $125 extra on the part would have saved the time it costs to run the lorry while it sits at the side of the road - let alone the cost of dealing with an unhappy customer the next morning because their delivery was four hours late and messed up their production line.

    So think about what guarantees you can offer to those customers who need reliability. Think also who is doing this in the market already, how they are coping with the competition from cheap components.
  • Posted by Jay Hamilton-Roth on 3/15/2013 at 9:00 AM Member
    Think of it from the customers' side: why should the customer care about the imitation/used part, if it costs less and works? You need to create a strong reason to buy from you, instead of your competition.
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