With the aftermarket’s ever-competitive landscape, many prudent motor factors are looking at ways to diversify their revenue streams. As a result, many have ventured into cross selling retail products alongside their trade offerings. By marrying up traditional automotive aftermarket offerings with auxiliary products and accessories, motor factors are able to cater for a wider range of customers.
Motor Factor Opportunities
The existing premises, footfall and parking facilities available to many motor factors give them a unique advantage when it comes to developing a retail aspect to their businesses. Having modern service items such as screen wash and engine oil present in the customer’s line of vision, whilst they are waiting for a car part is likely to motivate cross selling.
By supplying the customer with all the tools to get the job done, a motor factor can secure the sale on the basis of customer convenience.
This is just one of the simplest examples in which motor factors can expand their sales opportunities. With the help of their local FPS representative, many motor factors have even strategically expanded their product offerings to appeal to non-automotive customers.
The FPS Retail Team
FPS has the expertise to support any motor factor who chooses to enhance their retail presence. Whether it is an 8-foot display of starter products or a full re-fit of the storefront, the team is able to provide expert guidance that allows them to grow at their own pace. This means that motor factors are able to maintain focus on their core business while allowing their auxiliary revenue stream to progress.
FPS representatives are completely invested in the success of the motor factors that they service. The team recognises that a motor factor’s success rests on identifying a strategic stock portfolio that sells, not tying them down with slow moving excess stock.
When FPS representatives visit their customers, they spend a good amount of time going through the store layout, facing up products, tidying shelves and making note of what products the business owner might need in order to improve sales.
How to Modernise a Motor Factor Premises for Growth
Recognising that each motor factor has challenges and opportunities that are unique to them, FPS representatives are able to prescribe a tailored suite of products that best suit the motor factor. This is especially important, as success is not about stocking all the products available in the aftermarket; it is about stocking the correct products for the customer.
Therefore, to ensure sustainable progress, FPS representatives provide complete clarity with the use of itemised spreadsheets loaded with stocking suggestions, number of SKU’s on the bay and strategic pricing suggestions. From strategising a simple shelf display using planograms to a complete shop uplift, FPS can help modernise motor factor premises and counsel them through the growth of their business.
Opportunities in Stocking Strategically
Many who have tested the waters of a retail arm began by stocking fast moving consumables such as of car care, maintenance, accessories and styling products. The synergy of these products with existing trade offerings allowed the motor factor to enjoy better profit margins by link selling.
So, what’s next?
FPS customers who use the F:Drive will notice that there are many items that are not specifically linked to automotive customers. Items like office supplies, catering amenities and leisure products actually have very strong cross-selling opportunities.
Many motor factors already stock traditional travel and touring products such as roof bars, warning triangles, personal protective equipment (PPE) and bike racks. As a result, many will find value in stocking other leisure products such as camping and caravanning accessories. This is a sound strategy as reports indicate that Britain continues to see an uplift in ‘staycations’.
Ready to Enhance your Retail Arm?
Motor factors who are interested in exploring adding or enhancing a retail arm to their business are advised to speak with their local FPS representatives. Like many things in business, there isn’t a one size fits all solution. With careful planning based out of the ordering track record, an FPS representative is able to help prescribe the best way forward.
For more information, please speak to your local FPS representative today.