The name on the box is less important to aftermarket parts buyers than it has been in the past, as they are more likely to switch brands or try value parts brands with their margins under increasing pressure.
Some are finding the so-called value brands are working fine in their operations and, in some cases, are finding online no-name products that perform similarly to OEM genuine parts. That was a theme that emerged during Heavy Duty Aftermarket Dialogue in Grapevine, Texas this week.
“If the part is of good quality, doesn’t have a high rate of failure and the distributor can stock it at the level I require with a high success rate, I need the best bang for my buck right now,” said Joseph Meyer-Razon, manager, transportation category at agricultural co-op CHS Inc., which runs 6,000 power units and 8,000 trailers. “Freight rates are so low, I’ve got to save as much money as humanly possible. If a filter is going to work the same, I’m going to buy the cheapest filter I can get.”
He added that he first ensures that value line parts won’t void any warranty on the trucks before installation. Sourcing value line parts and adopting e-commerce was a common theme among fleet representatives speaking at the event.
Meyer-Razon said, “There are still certain parts we go OE on. One of the things we started doing is researching who the manufacturer is of some of the OE parts and going [direct] to those manufacturers. We are getting the same quality and technology and the same style of part, but it doesn’t have the OE branding on it. That’s one of the strategies I’m doing for this year.”
Dennis Schnautz, president of Clark Freight Lines, has ordered the same part from the OEM and on Amazon and found them to be practically identical — right down to the language on the box — with the Amazon-sourced part being less expensive.
Shannon O’Brien, sharing results from a MEMA member survey, said responses suggested brand loyalty still exists, “but is definitely changing.” She added, “it’s not the deciding factor it was in the past. Brand alone doesn’t justify premium pricing the way it used to, especially in a cost-conscious market.”
One survey respondent told her decision-making now mirrors that of everyday consumers. “If someone is making a part that’s almost as good and 30% less [cost], what would you buy in your personal life?” they asked.
This hasn’t been lost on OE aftermarket suppliers. In an earlier keynote, Drew Backeberg, senior vice president of aftermarket with Daimler Truck North America, said the company is stocking more value parts in its DCs to compete in the price-sensitive segment. It’s also taking steps to become easier to work with online, bringing online aftermarket parts sales to $1 billion a year in just five years.
“This is not the future, this is today,” he said of e-commerce in the aftermarket parts space.
However, a risk in sourcing value parts – especially online – is losing the support that comes with genuine OE parts. Returns are also more cumbersome. The fleet panelists all agreed they want continued face time with sales reps for training and support.
“Do I need that face-to-face salesperson? Yes. Don’t get rid of them,” said Meyer-Razon.
And, quipped Schnautz of parts reps, “It’s nice for them to take you out for lunch, too. You can’t do that with e-commerce.”
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