Forward Motion
12-30-2004, 05:20 AM
S.E.M.A has finally got there shit toghether with all of the major companys out there. Skunk2, HKS, Thermal research, AEBS, ARP, K&N, Greddy, TEIN, Tial, PWR, Fluidyne, Bosal, Autometer, DEFI, AEm, INJEN, KONI, Sparco, even Ebay motors and just about every other market leader out there. these are just but a few.
The SEMA Show is the premier automotive specialty products trade event in the world. It draws the industry's brightest minds and hottest products to one place, the Las Vegas Convention Center. As part of AAIW, the SEMA Show attracts more than 100,000 industry leaders from over 100 countries for unlimited profit opportunities in the automotive, truck and SUV, marine and RV markets. SEMA Show 2004 is expected to draw over 50,000 domestic and international buyers through two million square feet of exhibits. The displays are segmented into 12 sections, and a New Products Showcase features more than 1,100 newly introduced parts, tools and components. In addition, the SEMA show provides attendees with educational seminars, product demonstrations, special events, networking opportunities and more.
It was evident that the hot topic of the year was economics of the industry. Why, last year the compact car market added another 1.2 billion dollars in resale for the aftermarket specialty world. This year the performa is pondering on anincrease of near or more than 3 billion dollars in earned revenu. But theres a catch. the current market is clouded by young followers that soil the market by making commitments of volume purchases only to blow each unit of sale for pennys on the dollar. or riddle the ebay with unheard of deals to move large amounts of product skus. NO MORE!! and the industry has listned, finally economic gain will return to the industry and the medival sales approach of the scammer will be weeded out and uprooted.
The industry plans to put in effect the MAP program. Typical manufacture marketing says theres a manufacture suggested retail price, or MSRP. Sometimes refered to as List pricing. Then theres MAP, Manufactures advertized price. Then subjectcated to jobber/racer platforms and then wholesale. with all the bigboys playing on the same team, it won't be long before the rest of the industry falls in line behind.
With MAAP program it will allow the industry to monitor sales thru networks of dealers. Much like the Liquer companies do. Dealers will be allowed certain percentages based upon volume of sales. With that set margins will be made and have to be aheared to. I'll use AEM as an example. AEM has stated in its contract that I as a dealer cannot sell or advertise selling below 10% off of MAP. otherwise by penalty i would loose either discount percentages or possible my contract could become null and void. They control the volume of sales by moderating the dealers. Kinda big brother, yes, in a way. but a good way.
So many good businnes have disapeared from the face of the market at an alarming rate its actually hurting the industry. And newer hard working entrepneurs are finding it more and more difficult to fill the shoes and demand of dwindling sales. All because an individule with a new credit card or access to several credit cards is selling a product for $5.00 more than cost out of his apartment in on Ebay, downtown Philly, L.A. or yes even here, in our hometown of Detroit. How does this make these and other owners of business feel? what about our dreams, our families, our goals to become a leader in an industry lead by hard work, long nights, and big dreams. Only to be belittled by draining life savings, theft, and broken promises.
This does not effect every business in a negative way... many companys have had to turn many hands trying to find a new niche in a growing market. Many have been able to survive on their names, extended savings, even just on good businness sense.
I hope with the intervention of the manufactures this will bring some of the business back to the local shops in all areas. and put businness where it belongs, in the stores to be in businness. I hope the best for all shop owners to continue with best regards to a successful 2005.
The SEMA Show is the premier automotive specialty products trade event in the world. It draws the industry's brightest minds and hottest products to one place, the Las Vegas Convention Center. As part of AAIW, the SEMA Show attracts more than 100,000 industry leaders from over 100 countries for unlimited profit opportunities in the automotive, truck and SUV, marine and RV markets. SEMA Show 2004 is expected to draw over 50,000 domestic and international buyers through two million square feet of exhibits. The displays are segmented into 12 sections, and a New Products Showcase features more than 1,100 newly introduced parts, tools and components. In addition, the SEMA show provides attendees with educational seminars, product demonstrations, special events, networking opportunities and more.
It was evident that the hot topic of the year was economics of the industry. Why, last year the compact car market added another 1.2 billion dollars in resale for the aftermarket specialty world. This year the performa is pondering on anincrease of near or more than 3 billion dollars in earned revenu. But theres a catch. the current market is clouded by young followers that soil the market by making commitments of volume purchases only to blow each unit of sale for pennys on the dollar. or riddle the ebay with unheard of deals to move large amounts of product skus. NO MORE!! and the industry has listned, finally economic gain will return to the industry and the medival sales approach of the scammer will be weeded out and uprooted.
The industry plans to put in effect the MAP program. Typical manufacture marketing says theres a manufacture suggested retail price, or MSRP. Sometimes refered to as List pricing. Then theres MAP, Manufactures advertized price. Then subjectcated to jobber/racer platforms and then wholesale. with all the bigboys playing on the same team, it won't be long before the rest of the industry falls in line behind.
With MAAP program it will allow the industry to monitor sales thru networks of dealers. Much like the Liquer companies do. Dealers will be allowed certain percentages based upon volume of sales. With that set margins will be made and have to be aheared to. I'll use AEM as an example. AEM has stated in its contract that I as a dealer cannot sell or advertise selling below 10% off of MAP. otherwise by penalty i would loose either discount percentages or possible my contract could become null and void. They control the volume of sales by moderating the dealers. Kinda big brother, yes, in a way. but a good way.
So many good businnes have disapeared from the face of the market at an alarming rate its actually hurting the industry. And newer hard working entrepneurs are finding it more and more difficult to fill the shoes and demand of dwindling sales. All because an individule with a new credit card or access to several credit cards is selling a product for $5.00 more than cost out of his apartment in on Ebay, downtown Philly, L.A. or yes even here, in our hometown of Detroit. How does this make these and other owners of business feel? what about our dreams, our families, our goals to become a leader in an industry lead by hard work, long nights, and big dreams. Only to be belittled by draining life savings, theft, and broken promises.
This does not effect every business in a negative way... many companys have had to turn many hands trying to find a new niche in a growing market. Many have been able to survive on their names, extended savings, even just on good businness sense.
I hope with the intervention of the manufactures this will bring some of the business back to the local shops in all areas. and put businness where it belongs, in the stores to be in businness. I hope the best for all shop owners to continue with best regards to a successful 2005.