New Study Aids Commercial Vehicle Parts Suppliers
Apr 8, 2009 11:04 AM
A new study, "Sales Best Practices among Commercial Vehicle Parts Suppliers," released today by the MEMA's Heavy Duty Manufacturers Association (HDMA) and Kotler Marketing Group, provides a blueprint for how commercial vehicle OEM component suppliers can address the challenges posed by economic and EPA regulatory issues.
One of the study's major findings is that suppliers' sales and negotiation efforts vary widely, both in terms of the practices they follow, and their success at defending price. While most respondents said they won price premiums on less than 25% of their recent bid wins, more than a third reported that they won price premiums on most orders. These best-practice suppliers regularly win business without having to match the lowest bidder.
The study identifies the sales and pricing "Best Practices" that allow these suppliers to out-negotiate their peers.
"This report offers all commercial vehicle component suppliers -- from Tier I's to raw materials suppliers -- a prescription of actionable best practices that they can adapt their business practices to and implement immediately," said Tim Kraus, President and COO of the Heavy Duty Manufacturers Association. "This unprecedented study of our industry comes at a critical time when suppliers need to sharpen their bottom lines the most."
This study is an invaluable resource for executives charged with improving sales effectiveness and increasing margins. Moreover, sales and marketing teams will find it to be a valuable source of ideas to incorporate into their account-level sales tactics and strategies.
Kotler Marketing Group conducted the study between December 2008 and January 2009. Senior executives and sales professionals from nearly 70 HDMA member companies provided input on more than 30 different business metrics and sales practices. Suppliers surveyed included Tier I and Tier II/III suppliers, as well as raw materials suppliers.
For more information, visit the Kotler Marketing Group website.
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