The contenders pushing to consolidate the transportation maintenance industry aren’t always so obvious. Companies like Dickinson Fleet Services and Amerit Fleet Solutions (both now owned by the same investment group) are clearly in the race, however, a more insidious threat exists to your independent service business… parts suppliers.
FleetPride is gobbling up independent service providers rapidly, and from these new shop and parts locations they are launching mobile trucks. As a side note, FleetPride won’t even return our calls because they know we are supporting the companies they seek to put out of business. I know it sounds odd that a parts company would want to put their customers out of business, but it’s understood that profits are higher selling through service than over the counter.
NAPA stopped returning our calls as well, because they too are acquiring service providers. In fact, it’s difficult to find any parts supplier who isn’t venturing down this path; even some MMA vendors have divisions competing against you.
Some of you may be thinking, heck I’ll just sell to these guys when they come around, but it’s important to understand they don’t need to buy everyone. By acquiring key locations they can quickly build a national network where you can no longer compete. It’s hard to imagine a handful of companies could put 80,000 service providers out of business. But they are organized and you are not. In fact, competition law says you’re not allowed to be organized.
The Mobile Maintenance Association can help independent service providers function as a single source supplier to the industry, while still maintaining their competitive independence. Combine this with the group purchasing power of the soon to be largest service association in the nation, the practice of driving independent services out of business will end.
Even if you feel this threat isn’t relevant to you or your goals, the MMA will still help you become more competitive and profitable. It’s our mission!