This week, 30 aftermarket professionals have returned to the classroom for Session II of the University of the Aftermarket’s sold-out Leadership 2.0 experience. Throughout the week, they will hear from industry leaders such as Tim Lee, MAAP, president of Lang Distributing Inc., analyze the latest industry challenges, present their intersession research findings and hone their leadership skills before returning to their jobs at aftermarket manufacturing, distribution, association and vehicle service organizations. Once again, several participants in this week’s session have agreed to give us their insider’s take on the experience, as part of our second annual Leadership 2.0 blogger series. Our third blog entry this week comes from Sean Tucker, national sales manager for Accessories Marketing Inc., an ITW company. 
Blog #3
Day one of the second session of Leadership 2.0 was great but day two was my favorite so far. What are the odds it would be the day I was assigned to write about?!
The day began with University of the Aftermarket Director Brian Cruickshank initiating a spirited discussion about reports that AutoZone has begun a test of heavy-duty agricultural products in 58 rural markets. The products are said to be air and oil filters, calipers, brakes and belts specific for tractors, heavy-duty trucks, semis and trailers.
The question: “Should the aftermarket be concerned?” The prevailing initial response was that the likelihood of success would be very small. The number of items necessary to stock in order to be considered a source by that customer, and the space required to stock these typically large, bulky items didn’t seem possible given the retailers’ normal footprint. Also, reports of the additional inventory investment seemed low if they really wanted to present a suitable offering.
However, Brian asked, “Isn’t that what we all thought when AutoZone announced they were going into the commercial market? Do we underestimate a company like AutoZone?” There was a telling pause in the room. In the end, the consensus was that we cannot underestimate a company like ’Zone, one that needs to continue to grow to satisfy Wall Street and has a large arsenal of cash and other resources to do so.
There was also a separate, brief discussion about the rise of service professionals ordering parts through their suppliers’ Internet sites. Service professionals in the class seemed to agree that they much preferred online ordering as it is quicker and greatly reduces returns.
Next up was Rick Guirlinger to give us an insightful overview of financial analysis of aftermarket companies. Rick is the UofA’s newest faculty member and he is a valuable addition to the program, bringing 25 years of executive finance management experience within the aftermarket. And it’s obvious that his passion for balance sheets and income statements is on the same level as Jay Leno’s passion for classic cars. Rick threw a lot at us, but all of it was relevant for anyone who wants to be a successful aftermarket executive. We reviewed an O’Reilly Auto Parts annual report; the exercise was very eye-opening and reinforced my disappointment in not having purchased their stock a long time ago. The point Rick wanted to get across to us was that there is a wealth of information out there that can help all of us run our businesses and make good, sound decisions.
After lunch, we spent the afternoon with Dr. Frank Morgan discussing “Effective Negotiations.” Being on the sales side of our business, this was of great interest to me. Dr. Morgan did a very good job of breaking down the elements of a negotiation to the point that it they seem like they should be pretty cut and dry, and easy. Why the heck then are they sometimes so difficult!?
Seemingly, all the negotiations we have within the aftermarket should be “win-win.” We want to form long-term “partnerships” with one another, either manufacturer with WD or jobber with service professional, etc. We all plan on being in business for some time and want to build long-lasting relationships. Unfortunately certain “intangibles” can enter into the negotiation, like wanting to “save face,” “winning,” “looking good to the boss” and “maintaining precedent.” Ultimately, it comes down to our ability to trust (a running theme this week) and our willingness to exchange information and ideas that achieve the needs of both parties for our mutual gain.
There were two exercises I thought were very effective. In the first, two people were given one set of information we both knew and then we each had a set of information just for the role they were playing, either buyer or seller. I was the buyer, which I’ve got to say was kind of nice for a change. In going over the results of the exercise, it was apparent that sellers who started with a high price usually ended up with one of the highest-selling prices, and buyers who countered with a low price usually got the lowest purchase prices. (Side note to any of my customers who may be reading this: Please don’t assume from now on that all my price quotes will be inflated!)
Finally, we did a very interesting exercise where each of three groups was split into two teams, management and employees. Again, both teams were given a set of information known by both sides and also a set of information known only to each side. It was like one of those mystery dinners where one of the guests is murdered and you try to find out who did it. No one died in this exercise, but one group faced such an impasse that the management team ended up firing all its employees.
After class, I had a quick meeting with my team to fine-tune our Thursday presentation, then it was off to another nice dinner with my classmates and the faculty. They are all great people and this course has been an awesome experience. Any time I can be around people who know more than I do, it’s a good thing because, as cliché as it sounds, “You’re never too old to learn.”
Many thanks to Leslie Cibor and everyone at Accessories Marketing Inc. for allowing me to participate in this wonderful experience! — Sean Tucker
To read this week’s Leadership 2.0 Blog Entries #1 and #2 click here and here.
