SEMA News - December 2010

NHRA Museum Celebrates Cars and Guitars

By Tony Thacker
Photography By Colby Martin and Matthew Pearson

	The Axes and Axles exhibit at the Wally Parks NHRA Motorsports Museum in Pomona, California, features cars and guitars from icons Jeff Beck, Eric Clapton, Michael Anthony, Eddie Van Halen, Jimmie Vaughan and Kenny Wayne Shepherd.
	Jeff Beck’s Guitar Garage includes his ’32 Highboy roadster.

Although primarily a motorsports museum that displays everything from early dry-lakes race cars to modern top fuel dragsters, the Wally Parks NHRA Motorsports Museum in Pomona, California, had long desired to host a stars’ cars and guitars exhibit. The necessary impetus came with the 60th anniversary of the Fender Telecaster guitar.

According to Cris Mirabella of Mirabella Guitars, “The Telecaster laid the groundwork for many of the modern custom designs of today. And even with all these modern concepts, the original design still remains a very valid and needed instrument.”

The interesting thing about the Tele’ is that its originator, Leo Fender, used the same concept of interchangeability as Henry Ford did with his cars. The body, neck and even the small parts were all designed to be interchangeable and easily replaced when broken. Also, the body was carved from a solid piece of wood so that no time was wasted forming the complicated hollow body of acoustic guitars.

Fender was also hip to the popular culture. Rather than using the staid wood finishes of previous years, by 1954 and the invention of the Stratocaster, he was painting his guitars with new DuPont automotive colors, such as candy apple red, Lake Placid blue and, of course, sparkle, which cars guys called metalflake.
Fender also embarked upon an aggressive advertising campaign that depicted people in everyday situations but with a Fender guitar strapped to their backs. The tag line was, “You won’t part with yours either.” The advertising firmly positioned Fender as the young, hip brand before branding was even a consideration.

Fender also found a burgeoning band of new musicians willing to play the company’s guitars—influential artists such as Jimi Hendrix, Eric Clapton, Jeff Beck, Keith Richards and many more who, in turn, influenced other budding musicians to adopt Fender as the guitar of choice for the new beat generation.

The guitars were easily customizable, and so players began decorating them with ever-wilder graphic treatments. The trend for custom guitars grew to such an extent that Fender established its own Custom Shop in 1985. Much like with cars at hot-rod shops, the Custom Shop builds prototypes and one-off guitars for artists, special events, charities, etc.

	The Axes and Axles exhibit will be on display at the Wally Parks NHRA Museum in Pomona, California, through June 2011.

Because one of the first things musicians often do when they get some money is buy a big car, there is a distinctive synergy between cars and guitars. Also, many of the early rock-and-roll songs were about cars, including “Rocket 88” and “Hot Rod Lincoln.”

It just all fits. And so it was that Fender’s Scott Buehl approached Pete Chapouris of SO-CAL Speed Shop wanting to build a custom Strat using SO-CAL’s distinctive red-and-white livery.

The result was a big hit, and the partnership blossomed when car guy Ritchie Fliegler, Fender’s senior vice president of market development at the time, stepped in. Discussions resulted in SO-CAL using Fender pick-guard material to make dash inserts. More importantly, Fender developed a production guitar styled in the famous SO-CAL colors. The relationship inspired SO-CAL President Pete Chapouris to develop a number of guitars to match SO-CAL cars.

Fast forward to 2010 and the 60th anniversary of the Telecaster. The idea was to use the synergy between cars and guitars to develop an interactive exhibit that would allow children to pick up a guitar and have a go! Guitar teachers would be on hand to show the kids how to hold a guitar and the basics of playing. During the 2010 L.A. County Fair, the museum welcomed hundreds of K-through-12 school children to the exhibit in an effort to introduce them to music and, through music, to cars.

Beyond the Fair, on January 28, 2011, the museum, working in conjunction with Henry Astor of the AMP Education program, will host two adult workshops. Hosted by WyoTech, the workshops—one each in the morning and afternoon—will feature professional car builders, such as Roy Brizio of Brizio Street Rods and Pete Chapouris of SO-CAL talking about their car-building experiences. There will also be some musicians on hand to talk about the other side of it. Practical hands-on demonstrations of guitar and car building will also be part of the program.

Meanwhile, the exhibit at the Wally Parks NHRA Motorsports Museum will run through June 2011. It is comprised of stars’ cars from Van Halen/Chickenfoot bass player Michael Anthony, Jeff Beck, Eric Clapton, Billy F. Gibbons, Kenny Wayne Shepherd and Jimmie Vaughan as well as Chip Foose and SO-CAL.

There are also numerous custom-built guitars from the above as well as from Eddie Van Halen, Brian Setzer and others. It’s certainly one of the best exhibits the museum has ever hosted, according to museum executives, and they expressed their gratitude to Fender and the many friends of the museum who are into cars and guitars.

Visit www.museum.nhra.com for more information about the Wally Parks NHRA Motorsports Museum and its exhibits and events.  

Former Van Halen bassist Michael Anthony showed up for the exhibit opening, signing autographs and bench racing. Blues guitarist Jimmie Vaughan was also in the house.		Artist and illustrator Thom Taylor (left) and automotive writer Pat Ganahl were on hand, as were other industry favorites, such as Alex Xydias, Pete Chapouris and Jimmy Shine.

SEMA News - December 2010

NHRA Museum Celebrates Cars and Guitars

By Tony Thacker
Photography By Colby Martin and Matthew Pearson

	The Axes and Axles exhibit at the Wally Parks NHRA Motorsports Museum in Pomona, California, features cars and guitars from icons Jeff Beck, Eric Clapton, Michael Anthony, Eddie Van Halen, Jimmie Vaughan and Kenny Wayne Shepherd.
	Jeff Beck’s Guitar Garage includes his ’32 Highboy roadster.

Although primarily a motorsports museum that displays everything from early dry-lakes race cars to modern top fuel dragsters, the Wally Parks NHRA Motorsports Museum in Pomona, California, had long desired to host a stars’ cars and guitars exhibit. The necessary impetus came with the 60th anniversary of the Fender Telecaster guitar.

According to Cris Mirabella of Mirabella Guitars, “The Telecaster laid the groundwork for many of the modern custom designs of today. And even with all these modern concepts, the original design still remains a very valid and needed instrument.”

The interesting thing about the Tele’ is that its originator, Leo Fender, used the same concept of interchangeability as Henry Ford did with his cars. The body, neck and even the small parts were all designed to be interchangeable and easily replaced when broken. Also, the body was carved from a solid piece of wood so that no time was wasted forming the complicated hollow body of acoustic guitars.

Fender was also hip to the popular culture. Rather than using the staid wood finishes of previous years, by 1954 and the invention of the Stratocaster, he was painting his guitars with new DuPont automotive colors, such as candy apple red, Lake Placid blue and, of course, sparkle, which cars guys called metalflake.
Fender also embarked upon an aggressive advertising campaign that depicted people in everyday situations but with a Fender guitar strapped to their backs. The tag line was, “You won’t part with yours either.” The advertising firmly positioned Fender as the young, hip brand before branding was even a consideration.

Fender also found a burgeoning band of new musicians willing to play the company’s guitars—influential artists such as Jimi Hendrix, Eric Clapton, Jeff Beck, Keith Richards and many more who, in turn, influenced other budding musicians to adopt Fender as the guitar of choice for the new beat generation.

The guitars were easily customizable, and so players began decorating them with ever-wilder graphic treatments. The trend for custom guitars grew to such an extent that Fender established its own Custom Shop in 1985. Much like with cars at hot-rod shops, the Custom Shop builds prototypes and one-off guitars for artists, special events, charities, etc.

	The Axes and Axles exhibit will be on display at the Wally Parks NHRA Museum in Pomona, California, through June 2011.

Because one of the first things musicians often do when they get some money is buy a big car, there is a distinctive synergy between cars and guitars. Also, many of the early rock-and-roll songs were about cars, including “Rocket 88” and “Hot Rod Lincoln.”

It just all fits. And so it was that Fender’s Scott Buehl approached Pete Chapouris of SO-CAL Speed Shop wanting to build a custom Strat using SO-CAL’s distinctive red-and-white livery.

The result was a big hit, and the partnership blossomed when car guy Ritchie Fliegler, Fender’s senior vice president of market development at the time, stepped in. Discussions resulted in SO-CAL using Fender pick-guard material to make dash inserts. More importantly, Fender developed a production guitar styled in the famous SO-CAL colors. The relationship inspired SO-CAL President Pete Chapouris to develop a number of guitars to match SO-CAL cars.

Fast forward to 2010 and the 60th anniversary of the Telecaster. The idea was to use the synergy between cars and guitars to develop an interactive exhibit that would allow children to pick up a guitar and have a go! Guitar teachers would be on hand to show the kids how to hold a guitar and the basics of playing. During the 2010 L.A. County Fair, the museum welcomed hundreds of K-through-12 school children to the exhibit in an effort to introduce them to music and, through music, to cars.

Beyond the Fair, on January 28, 2011, the museum, working in conjunction with Henry Astor of the AMP Education program, will host two adult workshops. Hosted by WyoTech, the workshops—one each in the morning and afternoon—will feature professional car builders, such as Roy Brizio of Brizio Street Rods and Pete Chapouris of SO-CAL talking about their car-building experiences. There will also be some musicians on hand to talk about the other side of it. Practical hands-on demonstrations of guitar and car building will also be part of the program.

Meanwhile, the exhibit at the Wally Parks NHRA Motorsports Museum will run through June 2011. It is comprised of stars’ cars from Van Halen/Chickenfoot bass player Michael Anthony, Jeff Beck, Eric Clapton, Billy F. Gibbons, Kenny Wayne Shepherd and Jimmie Vaughan as well as Chip Foose and SO-CAL.

There are also numerous custom-built guitars from the above as well as from Eddie Van Halen, Brian Setzer and others. It’s certainly one of the best exhibits the museum has ever hosted, according to museum executives, and they expressed their gratitude to Fender and the many friends of the museum who are into cars and guitars.

Visit www.museum.nhra.com for more information about the Wally Parks NHRA Motorsports Museum and its exhibits and events.  

Former Van Halen bassist Michael Anthony showed up for the exhibit opening, signing autographs and bench racing. Blues guitarist Jimmie Vaughan was also in the house.		Artist and illustrator Thom Taylor (left) and automotive writer Pat Ganahl were on hand, as were other industry favorites, such as Alex Xydias, Pete Chapouris and Jimmy Shine.

SEMA News - December 2010

NHRA Museum Celebrates Cars and Guitars

By Tony Thacker
Photography By Colby Martin and Matthew Pearson

	The Axes and Axles exhibit at the Wally Parks NHRA Motorsports Museum in Pomona, California, features cars and guitars from icons Jeff Beck, Eric Clapton, Michael Anthony, Eddie Van Halen, Jimmie Vaughan and Kenny Wayne Shepherd.
	Jeff Beck’s Guitar Garage includes his ’32 Highboy roadster.

Although primarily a motorsports museum that displays everything from early dry-lakes race cars to modern top fuel dragsters, the Wally Parks NHRA Motorsports Museum in Pomona, California, had long desired to host a stars’ cars and guitars exhibit. The necessary impetus came with the 60th anniversary of the Fender Telecaster guitar.

According to Cris Mirabella of Mirabella Guitars, “The Telecaster laid the groundwork for many of the modern custom designs of today. And even with all these modern concepts, the original design still remains a very valid and needed instrument.”

The interesting thing about the Tele’ is that its originator, Leo Fender, used the same concept of interchangeability as Henry Ford did with his cars. The body, neck and even the small parts were all designed to be interchangeable and easily replaced when broken. Also, the body was carved from a solid piece of wood so that no time was wasted forming the complicated hollow body of acoustic guitars.

Fender was also hip to the popular culture. Rather than using the staid wood finishes of previous years, by 1954 and the invention of the Stratocaster, he was painting his guitars with new DuPont automotive colors, such as candy apple red, Lake Placid blue and, of course, sparkle, which cars guys called metalflake.
Fender also embarked upon an aggressive advertising campaign that depicted people in everyday situations but with a Fender guitar strapped to their backs. The tag line was, “You won’t part with yours either.” The advertising firmly positioned Fender as the young, hip brand before branding was even a consideration.

Fender also found a burgeoning band of new musicians willing to play the company’s guitars—influential artists such as Jimi Hendrix, Eric Clapton, Jeff Beck, Keith Richards and many more who, in turn, influenced other budding musicians to adopt Fender as the guitar of choice for the new beat generation.

The guitars were easily customizable, and so players began decorating them with ever-wilder graphic treatments. The trend for custom guitars grew to such an extent that Fender established its own Custom Shop in 1985. Much like with cars at hot-rod shops, the Custom Shop builds prototypes and one-off guitars for artists, special events, charities, etc.

	The Axes and Axles exhibit will be on display at the Wally Parks NHRA Museum in Pomona, California, through June 2011.

Because one of the first things musicians often do when they get some money is buy a big car, there is a distinctive synergy between cars and guitars. Also, many of the early rock-and-roll songs were about cars, including “Rocket 88” and “Hot Rod Lincoln.”

It just all fits. And so it was that Fender’s Scott Buehl approached Pete Chapouris of SO-CAL Speed Shop wanting to build a custom Strat using SO-CAL’s distinctive red-and-white livery.

The result was a big hit, and the partnership blossomed when car guy Ritchie Fliegler, Fender’s senior vice president of market development at the time, stepped in. Discussions resulted in SO-CAL using Fender pick-guard material to make dash inserts. More importantly, Fender developed a production guitar styled in the famous SO-CAL colors. The relationship inspired SO-CAL President Pete Chapouris to develop a number of guitars to match SO-CAL cars.

Fast forward to 2010 and the 60th anniversary of the Telecaster. The idea was to use the synergy between cars and guitars to develop an interactive exhibit that would allow children to pick up a guitar and have a go! Guitar teachers would be on hand to show the kids how to hold a guitar and the basics of playing. During the 2010 L.A. County Fair, the museum welcomed hundreds of K-through-12 school children to the exhibit in an effort to introduce them to music and, through music, to cars.

Beyond the Fair, on January 28, 2011, the museum, working in conjunction with Henry Astor of the AMP Education program, will host two adult workshops. Hosted by WyoTech, the workshops—one each in the morning and afternoon—will feature professional car builders, such as Roy Brizio of Brizio Street Rods and Pete Chapouris of SO-CAL talking about their car-building experiences. There will also be some musicians on hand to talk about the other side of it. Practical hands-on demonstrations of guitar and car building will also be part of the program.

Meanwhile, the exhibit at the Wally Parks NHRA Motorsports Museum will run through June 2011. It is comprised of stars’ cars from Van Halen/Chickenfoot bass player Michael Anthony, Jeff Beck, Eric Clapton, Billy F. Gibbons, Kenny Wayne Shepherd and Jimmie Vaughan as well as Chip Foose and SO-CAL.

There are also numerous custom-built guitars from the above as well as from Eddie Van Halen, Brian Setzer and others. It’s certainly one of the best exhibits the museum has ever hosted, according to museum executives, and they expressed their gratitude to Fender and the many friends of the museum who are into cars and guitars.

Visit www.museum.nhra.com for more information about the Wally Parks NHRA Motorsports Museum and its exhibits and events.  

Former Van Halen bassist Michael Anthony showed up for the exhibit opening, signing autographs and bench racing. Blues guitarist Jimmie Vaughan was also in the house.		Artist and illustrator Thom Taylor (left) and automotive writer Pat Ganahl were on hand, as were other industry favorites, such as Alex Xydias, Pete Chapouris and Jimmy Shine.

SEMA News - December 2010

By the time this column makes it to readers, the winners of the first-ever SEMA Awards will have been announced. This exciting new SEMA Show award highlights the year’s most popular car, truck and 4x4-SUV, as selected by SEMA Show exhibitors. It is given to the most prolific vehicle models that SEMA manufacturers chose to trick-out, modify and display in their booths. 

Media anticipation of the winners was high months prior to the SEMA Show, as the industry looked to the annual event to see which vehicle models exhibitors were investing in and what cool, new products they had developed for those vehicles. With several vehicle models identified as contenders for the SEMA Award, the media provided their own commentary as to which vehicles they thought would win. Meanwhile, consumers made their own predictions by taking the SEMA
Challenge—an online contest that provided them with a unique opportunity to get involved in the action.

Below is some of the coverage highlighting what the media was saying about the SEMA Award before the SEMA Show. Check out these clips to get a sense of the excitement that existed before the SEMA Award winners were announced. Then be sure to look to your favorite automotive publications to see what they’re saying about the actual winners that were announced at the SEMA Show in November. Chances are, if you search the Internet (or visit SEMA’s website at www.sema.org), you’ll be able to learn what the hottest car, hottest truck and hottest 4x4-SUV are and get details about the products that SEMA Show exhibitors offer for these vehicles!

my.IS (Lexus IS Online Forum), September 10, 2010 “Will the Lexus IS Be the Hottest Car at the 2010 SEMA Show?” With 21 vehicles identified as contenders for the SEMA Award, enthusiasts everywhere were eager to support their favorite brands. The Lexis IS online forum my.IS stated: “We are proud to announce that the Lexus IS is among the 11 models nominated for the Hottest Car award,” and reported on how the editors were looking forward to seeing what was in store at the 2010 SEMA Show.

Specialty Automotive Magazine, September/October 2010 “Detroit’s sales gains, ‘vehicle appeal,’ and a new award for the ‘hottest vehicles.’” Editor Steve Relyea shared the news about the new award with his readers, noting that “we’ll bring news of the three winners of this award in our January/February issue.”

Road & Track Magazine, October 12, 2010 “Which do you think will be the hottest vehicles in Vegas?” Road & Track tapped into the notion that the SEMA Challenge gave enthusiasts a chance to get involved with the trade-only SEMA Show. The online contest gave those who accurately predicted the SEMA Award winners a chance to win a trip to next year’s SEMA Show. “SEMA is the world’s largest exhibition of automotive accessories built to make your car look cooler, go faster and sound louder,” reported Road & Track. “About the only thing you won’t find at SEMA is an invitation to the general public to come and join in the fun. The world’s biggest automotive block party is strictly an industry-only affair.”

Edmunds Inside Line, October 15, 2010 “$2,500 Trip to 2011 SEMA Show Up for Grabs in New Sweepstakes” Another publication that caught onto the idea that consumers taking the SEMA Challenge could win a trip to the SEMA Show was Edmunds Inside Line. Correspondent Anita Lienert went so far as to say that the VIP prize, which includes airfare and hotel accommodations for two, was “more appealing than any lottery.”

SEMA News - December 2010

A View of the Coming Year With SEMA’s Council Leaders

No one can predict the future, of course, but experience is a type of barometer. As we move into a new year, we called on the wisdom of some of SEMA’s most seasoned managers—who also happen to be in leadership positions with the association’s councils—to provide their opinions about what’s just down the road. We hope that their thoughts spark a few of your own.

Automotive Restoration Market Organization (ARMO)

The most significant trend we see is the increased interest by young people in our industry/hobby. Many of our youngest enthusiasts tend not to do pure restorations but more often choose to build in a restomod style, adding their own touches. The Automotive Restoration Market Organization (ARMO) has actively pursued this demographic through its “Take a Kid to a Car Show” Program. Cars that many in our industry thought would never be considered classics, such as the GM G-body platform, have been embraced by the younger generation. The companies that will do the best will be the first to spot the trends—the next popular car or style of restoration.

Most of the ARMO companies that I have spoken to are also seeing modest gains this year and expect to see growth throughout 2011. Although the industry has felt the effects of the down economy over the last 30 months, it has not been as bad as in many of the other industries that depend on disposable income. People in our hobby tend to be very passionate about their cars.

As our market continues to become more and more Internet-based on the retail level, we are seeing dramatic changes in marketing strategies. Traditional print media is still very important in our market, but retail companies are now looking to increase their online presence.

Our largest challenges for the next year will be in dealing with new legislation. However, unlike most businesses, our members have to deal with misguided state and local governments that in many ways try to outlaw old cars. Unfortunately, many lawmakers see old cars as a problem, not understanding how well these cars are maintained and how few miles most are driven.
—Alex Tainsh
Executive Vice President of Parts Unlimited Inc., Chairman-Elect of ARMO

Hot Rod Industry Alliance (HRIA)

The economy seems to have stabilized at this time, but it is still not good. That’s why diversity of products is important. If a manufacturer is making parts for only one segment, such as street rod or musclecar, the company could be driven out of business because that single segment is down in sales, even though things are not that bad overall. As of this writing, we’re hoping things stay flat, which would be better than down, but we are also hoping that things will pick up after
the elections.

With the major event promoters extending the age limits on vehicles, I think that the traditional street-rod market will slowly fade and musclecars will gradually increase in popularity. Even though later-model cars are just as expensive to build as traditional street rods, the later models are much more comfortable to drive. In addition, Baby Boomers want the cars they had in high school.

The challenges for HRIA companies include products and instruction manuals being copied and infringements on intellectual property rights. We even have current SEMA members that are doing this to other SEMA members. Several companies have voiced concern, and SEMA’s Washington, D.C., office has sent out information to all members on how to handle these situations.
—Dennis Overholser
Executive Vice President of Painless Performance Products, Chairman of HRIA

 
Truck and Off-Road Alliance (TORA)

We’re seeing a nice little bounce back in the production and retail sales of light trucks and SUVs, though not nearly at 2007 or 2008 levels. Most of our membership is cautiously optimistic. The greatest opportunities lie in TORA members banding together and in retailers sharing successes between each other to grow their collective businesses.

We’re seeing a lot of social networking on the marketing side. A lot of retailers are actively promoting their businesses with their own pages on Facebook, and they’re using Twitter messaging. Many of our dealers are also using e-mail and other electronic media in their marketing efforts.

One of the challenges for our members is that many of the automakers are producing their own versions of what were traditionally aftermarket products, so TORA manufacturing companies must continue to come up with creative and innovative new products to stay ahead of that curve. However, the most important thing is that more trucks are being sold in 2010 than were being sold in 2009. Since many of our members are dependent upon that new-vehicle business, they should gear up their inventories to separate themselves from the competition and garner those sales.
—George Lathouris
Senior Category Manager, Wheel & Tire Division, Keystone Automotive Operations, Chairman-Elect of TORA

Motorsports Parts Manufacturers Council (MPMC)

There is considerable buzz within the MPMC about off-shore knockoffs and private-label products. The distinction between being a manufacturer and being a distributor is becoming blurred in many instances and will likely force manufacturers to work harder to protect their intellectual property and shift away from being totally reliant upon distributors to sell their products.

The use of electronic media is definitely on the rise, while mobile marketing and event marketing seem to be a larger part of shrinking budgets in this down economy. The MPMC’s “Take a Friend to a Race” initiative draws on our responsibility as motorsports manufacturers to help put spectators in the seats and race cars in the pits, so even a hard day’s work interacting with our customers at the racetrack should still put smiles on our faces.

The biggest challenge is maintaining the confidence to invest in new products and new technologies when the general economic outlook is pretty bleak. MPMC-member companies are fortunate in that our end consumers—racers and performance enthusiasts—are passionate about motorsports and will sacrifice in other areas of their lives to satisfy their need for speed.

New products are the key. Manufacturers that are able to engineer and manufacture new, innovative products will thrive regardless of economic conditions. MPMC-member manufacturers know that we need to constantly engage the media to help tell our story and that events such as the Media Trade Conference offer a substantial return on investment.
—Kyle Fickler
Vice President of Sales and Marketing for Weld Racing LLC, Chairman of MPMC

Manufacturers’ Rep Council (MRC)

The expansion of electronic services and tools utilized by agencies is a trend that’s on a crazy curve of growth! With our hip computers (Blackberries, iPhones, etc.), we are in constant contact with our customers, vendors and each other. This electronic bridge continues to span farther and farther with new ways to communicate.

The economy has been a major factor, but it appears that customers have budgeted for this, allowing for some discretionary spending in their budgets. In my opinion, business is trending more upward for 2011. Customers are purchasing cars and seem to be in a mode of keeping them longer and accessorizing them to
their tastes.

Social media is a large part of the process for consumers to make a purchasing decisions and gain knowledge about products or categories. The challenge is to locate and market to so many factions in forums and groups. Electronic media is a challenge because of the time and money it eats up, and it concerns me that we might forget the brick-and-mortar stores where customers still walk in, albeit with much more knowledge about product and price, thanks to electronic media. They still need to be sold and provided a service in person. 

One of the more significant trends for the MRC is the need to provide more information and knowledge to our members, ensuring they can keep on the right side of the electronic media curve and not forget the foundation of what a manufacturer’s rep is here to do—grow sales and relationships!
—Wade Cobb
Principal at HAPCO, Chairman of MRC

 

 

Professional Restylers Organization (PRO)

Electronics will continue to be an area of consumer interest and potential growth. The accessory industry will find ways to heighten and expand the usefulness of vehicle electronics. Apps are now available to make it possible to use your mobile phone to activate your remote start, for example. In addition, auto dealers are showing an increased interest in accessory sales. OE programs are available, as are a number of “one-stop” solution providers to help dealers integrate accessory sales into their operations without reinventing the wheel.

The outcome of the midterm elections in 2010 may very well be the catalyst to drive consumer confidence and loosen up spending. The economy has not rebounded the way it was expected to, and some “experts” are saying to accept this climate as the “new normal.” I shudder to think we in this industry would accept that. There is enormous collective talent and creative genius in the accessory industry. It is populated primarily with people who don’t accept retreat, shrinking markets and mediocrity. Therefore, I think the biggest challenge we have is to fight the influence of those who want us to believe this is the “new normal.”

Younger customers present new challenges. Restylers need to keep getting more information and more training. The Technical Skills & Training Conference to be held at Wyotech in Blairstown, Pennsylvania, in March 2011 is an outstanding opportunity to network, get new business ideas and get much-needed training.
—Karl Stearns
Owner of KMS Marketing Solutions, Chairman of PRO

SEMA Businesswomen’s Network (SBN)

One of the most significant industry trends is the ever-increasing empowerment of consumers. Traditional media, Internet resources and social media have put a tremendous amount of information into our customers’ hands. No longer is a customer willing to “take our word for it.” They come to the retail environment armed with information and ready to make an informed decision.

Our world is smaller than we think. Going global is on the rise. The domestic market is fairly saturated with established WDs, jobbers and retailers, but many opportunities are available in overseas markets. Many countries look to the United States as the automotive trendsetter and want our products. Do some research, and seek out companies that have experienced overseas success with their branded products. Ask them for advice or contact a SEMA-member export management company for assistance. After all, “made in the USA” is still a strong and valued feature in overseas markets.

The biggest and strongest buying power in this country is women. Women spend billions on clothes, makeup, personal care products, home accessories and vehicles. They are interested in the styling and upfitting of their vehicles. Harley-Davidson recognized this trend and is actively going after the female market by building motorcycles and products exclusively for women. There is also an increasing number of women in the aftermarket automotive industry, which includes racing. Women are a part of every segment of the business, from hands-on technicians to CEOs. They are, literally and figuratively, changing the face of our industry.
—Compiled by Rose Kawasaki
Vice President of Exports International, Communications Subcommittee Chair for SBN

Street Performance Council (SPC)

Status quo for business is not enough these days. Businesses are evaluating and changing more rapidly than they have in the past. Companies that are open to change and can execute rapidly are seeing the most success now. Companies that are still trying to do business the way they did it 10 years ago will continue to struggle with this economy.

It is no surprise that the industry’s typical distribution model is changing rapidly due to the Internet. Marketing departments are facing their largest challenges in many years as they evolve to have a balanced plan for all types of advertising mediums. Aftermarket consumers are more diversified in their interests and their information gathering, which complicates a traditional print-only advertising plan. 

Having consistent sales, steady cash flow and productive execution of a solid business plan provide the greatest opportunities, as do understanding your product’s consumer and identifying your business’ core strengths. It is so important to know why your consumer chooses your product and to focus your energy on capturing more of those consumers. 
—Tracie Nuñez
Chief Executive Officer of Advanced Clutch Technology Inc., Chairman of SPC

Wheel & Tire Council (WTC)

We are seeing a trend toward stronger and lighter wheels for better performance on hybrid vehicles and also the study of rolling resistance on tires for improved fuel economy. There are indications that 2010 truck and automobile sales are up approximately 25%–30% from this time last year. The more vehicles that are on the road, the more opportunities to upgrade them with aftermarket parts.

WTC members will strike a marketing balance between traditional channels and electronic media. We want to reach our younger customers through their preferred electronic media, but we still want to reach our older customers through traditional channels without inducing e-mail fatigue with all of the forms of electronic announcements and advertisements.
The economy will certainly affect our market. As people hold on to their vehicles a little longer, the appeal to restyle with aftermarket upgrades is more likely to happen. New tires and wheels remain one of the best ways to enhance the appearance and performance of a vehicle.

Price has been one of the main factors in purchasing tires and wheels for some time. Now our segment of the market wants a quality product, too, so we are seeing an increased awareness and demand for tires and wheels that have been properly tested to industry standards and parts that will survive more than a few seasons. People are steering away from cheaper, copy-cat parts and are spending their money on something with better quality.
—Tim Dietz
Account Manager for Standards Testing Laboratories, Chairman of WTC

Young ExecutivesNetwork (YEN)

The members of the younger generation are becoming a driving force within their respective corporations. Younger people had to work twice as hard to earn their stripes in this industry 10 or 20 years ago. Today’s younger generation has the knowledge and the experience to use new technologies—the Internet, instant communication and social media—to their advantage. This allows the younger generation to move through the ranks of a company at incredible speeds.
Two other trends stand out. One is that teens are waiting longer to get their drivers’ licenses—sometimes until they are 18 or 19—and they are typically buying fuel-efficient cars. They can’t afford to fuel the performance cars that our industry loves to promote.

We see in our age group that there is a slowing trend in buying new vehicles. We see individuals who have disposable income choosing to hold on to their dollars instead of purchasing a new vehicle. This is certainly driven by the uncertainty of our economy, but it also may help the automotive specialty-equipment market as those older cars need new parts to stay roadworthy or new accessories to stay “cool.”

Choosing the right marketing mix will pose a challenge in 2011. Many companies either completely cut or significantly dropped their marketing budgets during the recession. Now, as the market is starting to look up, the companies that survived are beginning to slowly step out and start to spend more marketing dollars. But they have to make the right decisions about where to put those budgets. One wrong move could cause a significant back-step in a fragile company.
—Gregory Parker
Marketing and Creative Consultant with Martin & Company Advertising, Chairman of YEN  

SEMA News - December 2010

A View of the Coming Year With SEMA’s Council Leaders

No one can predict the future, of course, but experience is a type of barometer. As we move into a new year, we called on the wisdom of some of SEMA’s most seasoned managers—who also happen to be in leadership positions with the association’s councils—to provide their opinions about what’s just down the road. We hope that their thoughts spark a few of your own.

Automotive Restoration Market Organization (ARMO)

The most significant trend we see is the increased interest by young people in our industry/hobby. Many of our youngest enthusiasts tend not to do pure restorations but more often choose to build in a restomod style, adding their own touches. The Automotive Restoration Market Organization (ARMO) has actively pursued this demographic through its “Take a Kid to a Car Show” Program. Cars that many in our industry thought would never be considered classics, such as the GM G-body platform, have been embraced by the younger generation. The companies that will do the best will be the first to spot the trends—the next popular car or style of restoration.

Most of the ARMO companies that I have spoken to are also seeing modest gains this year and expect to see growth throughout 2011. Although the industry has felt the effects of the down economy over the last 30 months, it has not been as bad as in many of the other industries that depend on disposable income. People in our hobby tend to be very passionate about their cars.

As our market continues to become more and more Internet-based on the retail level, we are seeing dramatic changes in marketing strategies. Traditional print media is still very important in our market, but retail companies are now looking to increase their online presence.

Our largest challenges for the next year will be in dealing with new legislation. However, unlike most businesses, our members have to deal with misguided state and local governments that in many ways try to outlaw old cars. Unfortunately, many lawmakers see old cars as a problem, not understanding how well these cars are maintained and how few miles most are driven.
—Alex Tainsh
Executive Vice President of Parts Unlimited Inc., Chairman-Elect of ARMO

Hot Rod Industry Alliance (HRIA)

The economy seems to have stabilized at this time, but it is still not good. That’s why diversity of products is important. If a manufacturer is making parts for only one segment, such as street rod or musclecar, the company could be driven out of business because that single segment is down in sales, even though things are not that bad overall. As of this writing, we’re hoping things stay flat, which would be better than down, but we are also hoping that things will pick up after
the elections.

With the major event promoters extending the age limits on vehicles, I think that the traditional street-rod market will slowly fade and musclecars will gradually increase in popularity. Even though later-model cars are just as expensive to build as traditional street rods, the later models are much more comfortable to drive. In addition, Baby Boomers want the cars they had in high school.

The challenges for HRIA companies include products and instruction manuals being copied and infringements on intellectual property rights. We even have current SEMA members that are doing this to other SEMA members. Several companies have voiced concern, and SEMA’s Washington, D.C., office has sent out information to all members on how to handle these situations.
—Dennis Overholser
Executive Vice President of Painless Performance Products, Chairman of HRIA

 
Truck and Off-Road Alliance (TORA)

We’re seeing a nice little bounce back in the production and retail sales of light trucks and SUVs, though not nearly at 2007 or 2008 levels. Most of our membership is cautiously optimistic. The greatest opportunities lie in TORA members banding together and in retailers sharing successes between each other to grow their collective businesses.

We’re seeing a lot of social networking on the marketing side. A lot of retailers are actively promoting their businesses with their own pages on Facebook, and they’re using Twitter messaging. Many of our dealers are also using e-mail and other electronic media in their marketing efforts.

One of the challenges for our members is that many of the automakers are producing their own versions of what were traditionally aftermarket products, so TORA manufacturing companies must continue to come up with creative and innovative new products to stay ahead of that curve. However, the most important thing is that more trucks are being sold in 2010 than were being sold in 2009. Since many of our members are dependent upon that new-vehicle business, they should gear up their inventories to separate themselves from the competition and garner those sales.
—George Lathouris
Senior Category Manager, Wheel & Tire Division, Keystone Automotive Operations, Chairman-Elect of TORA

Motorsports Parts Manufacturers Council (MPMC)

There is considerable buzz within the MPMC about off-shore knockoffs and private-label products. The distinction between being a manufacturer and being a distributor is becoming blurred in many instances and will likely force manufacturers to work harder to protect their intellectual property and shift away from being totally reliant upon distributors to sell their products.

The use of electronic media is definitely on the rise, while mobile marketing and event marketing seem to be a larger part of shrinking budgets in this down economy. The MPMC’s “Take a Friend to a Race” initiative draws on our responsibility as motorsports manufacturers to help put spectators in the seats and race cars in the pits, so even a hard day’s work interacting with our customers at the racetrack should still put smiles on our faces.

The biggest challenge is maintaining the confidence to invest in new products and new technologies when the general economic outlook is pretty bleak. MPMC-member companies are fortunate in that our end consumers—racers and performance enthusiasts—are passionate about motorsports and will sacrifice in other areas of their lives to satisfy their need for speed.

New products are the key. Manufacturers that are able to engineer and manufacture new, innovative products will thrive regardless of economic conditions. MPMC-member manufacturers know that we need to constantly engage the media to help tell our story and that events such as the Media Trade Conference offer a substantial return on investment.
—Kyle Fickler
Vice President of Sales and Marketing for Weld Racing LLC, Chairman of MPMC

Manufacturers’ Rep Council (MRC)

The expansion of electronic services and tools utilized by agencies is a trend that’s on a crazy curve of growth! With our hip computers (Blackberries, iPhones, etc.), we are in constant contact with our customers, vendors and each other. This electronic bridge continues to span farther and farther with new ways to communicate.

The economy has been a major factor, but it appears that customers have budgeted for this, allowing for some discretionary spending in their budgets. In my opinion, business is trending more upward for 2011. Customers are purchasing cars and seem to be in a mode of keeping them longer and accessorizing them to
their tastes.

Social media is a large part of the process for consumers to make a purchasing decisions and gain knowledge about products or categories. The challenge is to locate and market to so many factions in forums and groups. Electronic media is a challenge because of the time and money it eats up, and it concerns me that we might forget the brick-and-mortar stores where customers still walk in, albeit with much more knowledge about product and price, thanks to electronic media. They still need to be sold and provided a service in person. 

One of the more significant trends for the MRC is the need to provide more information and knowledge to our members, ensuring they can keep on the right side of the electronic media curve and not forget the foundation of what a manufacturer’s rep is here to do—grow sales and relationships!
—Wade Cobb
Principal at HAPCO, Chairman of MRC

 

 

Professional Restylers Organization (PRO)

Electronics will continue to be an area of consumer interest and potential growth. The accessory industry will find ways to heighten and expand the usefulness of vehicle electronics. Apps are now available to make it possible to use your mobile phone to activate your remote start, for example. In addition, auto dealers are showing an increased interest in accessory sales. OE programs are available, as are a number of “one-stop” solution providers to help dealers integrate accessory sales into their operations without reinventing the wheel.

The outcome of the midterm elections in 2010 may very well be the catalyst to drive consumer confidence and loosen up spending. The economy has not rebounded the way it was expected to, and some “experts” are saying to accept this climate as the “new normal.” I shudder to think we in this industry would accept that. There is enormous collective talent and creative genius in the accessory industry. It is populated primarily with people who don’t accept retreat, shrinking markets and mediocrity. Therefore, I think the biggest challenge we have is to fight the influence of those who want us to believe this is the “new normal.”

Younger customers present new challenges. Restylers need to keep getting more information and more training. The Technical Skills & Training Conference to be held at Wyotech in Blairstown, Pennsylvania, in March 2011 is an outstanding opportunity to network, get new business ideas and get much-needed training.
—Karl Stearns
Owner of KMS Marketing Solutions, Chairman of PRO

SEMA Businesswomen’s Network (SBN)

One of the most significant industry trends is the ever-increasing empowerment of consumers. Traditional media, Internet resources and social media have put a tremendous amount of information into our customers’ hands. No longer is a customer willing to “take our word for it.” They come to the retail environment armed with information and ready to make an informed decision.

Our world is smaller than we think. Going global is on the rise. The domestic market is fairly saturated with established WDs, jobbers and retailers, but many opportunities are available in overseas markets. Many countries look to the United States as the automotive trendsetter and want our products. Do some research, and seek out companies that have experienced overseas success with their branded products. Ask them for advice or contact a SEMA-member export management company for assistance. After all, “made in the USA” is still a strong and valued feature in overseas markets.

The biggest and strongest buying power in this country is women. Women spend billions on clothes, makeup, personal care products, home accessories and vehicles. They are interested in the styling and upfitting of their vehicles. Harley-Davidson recognized this trend and is actively going after the female market by building motorcycles and products exclusively for women. There is also an increasing number of women in the aftermarket automotive industry, which includes racing. Women are a part of every segment of the business, from hands-on technicians to CEOs. They are, literally and figuratively, changing the face of our industry.
—Compiled by Rose Kawasaki
Vice President of Exports International, Communications Subcommittee Chair for SBN

Street Performance Council (SPC)

Status quo for business is not enough these days. Businesses are evaluating and changing more rapidly than they have in the past. Companies that are open to change and can execute rapidly are seeing the most success now. Companies that are still trying to do business the way they did it 10 years ago will continue to struggle with this economy.

It is no surprise that the industry’s typical distribution model is changing rapidly due to the Internet. Marketing departments are facing their largest challenges in many years as they evolve to have a balanced plan for all types of advertising mediums. Aftermarket consumers are more diversified in their interests and their information gathering, which complicates a traditional print-only advertising plan. 

Having consistent sales, steady cash flow and productive execution of a solid business plan provide the greatest opportunities, as do understanding your product’s consumer and identifying your business’ core strengths. It is so important to know why your consumer chooses your product and to focus your energy on capturing more of those consumers. 
—Tracie Nuñez
Chief Executive Officer of Advanced Clutch Technology Inc., Chairman of SPC

Wheel & Tire Council (WTC)

We are seeing a trend toward stronger and lighter wheels for better performance on hybrid vehicles and also the study of rolling resistance on tires for improved fuel economy. There are indications that 2010 truck and automobile sales are up approximately 25%–30% from this time last year. The more vehicles that are on the road, the more opportunities to upgrade them with aftermarket parts.

WTC members will strike a marketing balance between traditional channels and electronic media. We want to reach our younger customers through their preferred electronic media, but we still want to reach our older customers through traditional channels without inducing e-mail fatigue with all of the forms of electronic announcements and advertisements.
The economy will certainly affect our market. As people hold on to their vehicles a little longer, the appeal to restyle with aftermarket upgrades is more likely to happen. New tires and wheels remain one of the best ways to enhance the appearance and performance of a vehicle.

Price has been one of the main factors in purchasing tires and wheels for some time. Now our segment of the market wants a quality product, too, so we are seeing an increased awareness and demand for tires and wheels that have been properly tested to industry standards and parts that will survive more than a few seasons. People are steering away from cheaper, copy-cat parts and are spending their money on something with better quality.
—Tim Dietz
Account Manager for Standards Testing Laboratories, Chairman of WTC

Young ExecutivesNetwork (YEN)

The members of the younger generation are becoming a driving force within their respective corporations. Younger people had to work twice as hard to earn their stripes in this industry 10 or 20 years ago. Today’s younger generation has the knowledge and the experience to use new technologies—the Internet, instant communication and social media—to their advantage. This allows the younger generation to move through the ranks of a company at incredible speeds.
Two other trends stand out. One is that teens are waiting longer to get their drivers’ licenses—sometimes until they are 18 or 19—and they are typically buying fuel-efficient cars. They can’t afford to fuel the performance cars that our industry loves to promote.

We see in our age group that there is a slowing trend in buying new vehicles. We see individuals who have disposable income choosing to hold on to their dollars instead of purchasing a new vehicle. This is certainly driven by the uncertainty of our economy, but it also may help the automotive specialty-equipment market as those older cars need new parts to stay roadworthy or new accessories to stay “cool.”

Choosing the right marketing mix will pose a challenge in 2011. Many companies either completely cut or significantly dropped their marketing budgets during the recession. Now, as the market is starting to look up, the companies that survived are beginning to slowly step out and start to spend more marketing dollars. But they have to make the right decisions about where to put those budgets. One wrong move could cause a significant back-step in a fragile company.
—Gregory Parker
Marketing and Creative Consultant with Martin & Company Advertising, Chairman of YEN  

SEMA News - December 2010

Leveraging the Latest Social Media Tools for Your Next Career Move

By Joe Dysart

	Linkedin is considered stop one for those looking to social network their next career move

While groups of any kind naturally lend themselves to job opportunities, social networks can give your next career move a real bounce if used expertly. Not surprisingly, the best places to start are on the networks with millions of users: LinkedIn, Twitter and Facebook. 

LinkedIn is the least famous of the three, but many career counselors believe this community is stop one for job hunters since the network is a serious business community populated by tens of thousands of high-level executives, influential thought leaders and similar sorts who can catapult your career into the stratosphere with a simple recommendation.

Meanwhile, Twitter—the micro-blogging community—is also considered extremely useful, since you can use the service to quickly cut through the chaff and “follow” or associate with only those people who can give your career a boost, give you a recommendation or give you a job. There are also scores of helpful tools on Twitter that have been developed to aid in your job search, including TwitterJobSearch, Twitter Job Finder, TwitterJobCast, TwitHire, TweetMyJobs, @JobAngels and @indeed. Run a “jobs” or “careers” keyword search on the service, and you can keep yourself busy for days.

On Facebook, you’ll also find plenty of career advice as well as access to a community that is half a billion strong and growing. Making connections here can be a virtually limitless and extremely profitable pursuit. It starts with putting a business face on your Facebook page to ensure that you look irresistibly hirable to any and all who come looking.

Putting the word out on Facebook also transforms all of your Facebook friends into prospective connections for that next job, and it turns their friends into, at the very least, potentially interested onlookers.

“The beauty of a Facebook page is that it’s searchable via Google, so when a prospective employer is checking you out, your Facebook page should rank high in the search terms because Facebook pages are quickly indexed,” said Linda Coles, founder of Blue Banana, a marketing training firm that specializes in social media.

As previously mentioned, however, the real crown jewel for job hunters is LinkedIn. Here are some tips from human resources and headhunter pros for establishing and nurturing your presence there:

• Be Thorough With Your Profile: Many headhunters say that LinkedIn profiles bursting with information about job prospects are the most welcome. That makes sense. The more positive details employers have about you, the easier a hiring decision becomes.
• Embed All Relevant Career Keywords in Your Profile: Since LinkedIn pages are tracked by Google and other search engines, it’s worth the extra time to ensure that all keywords associated with the employment you’re seeking are a part of the profile you create on LinkedIn.
• Be Descriptive: Instead of engendering a snooze with your LinkedIn profile headline, punch it up. “Does your professional headline say exactly what you do—the real essence—or does it say ‘Manager at ABC Ltd.’? said Blue Banana’s Coles. “You have 120 characters, so be creative. Try something such as ‘I help manufacture and distribute the tastiest chocolate in the U.S.A.’”
• Continually Build Your Network: Whether you’re creating a LinkedIn network of only trusted, longtime colleagues or are going for broke for as many associations as possible, power users said that continually building your network on LinkedIn will pay off when you need it most. “Start building it before you need a job, if possible,” said Ken Savage, a web marketer. “You never know who you will meet and what opportunities they will present. Building your social network will save you the time of sitting and talking to recruiters and only having interviews in their offices instead of at the companies you desire.”
• Give to Get Recommendations: Probably the most treasured nod you can receive on LinkedIn is a recommendation from another professional, graphically represented as a thumbs-up on your profile. Such endorsements are sometimes considered even more valuable than those found on traditional résumés, since it’s very easy for a headhunter or a human resources pro to check out the recommendation, evaluate the network of your endorser and easily and quickly contact your champion by e-mail for more information.
• Make Personal Connections to Key Human Resources People: Given that LinkedIn is so eminently searchable, you may be able to use a few simple keywords to track down headhunters and human resources people in your industry on the network who are friends of friends. Indeed, many companies give bounties to staff members who recommend friends to their HR departments. “If you search for a job, pay attention to the degrees of distance from you,” Savage said. “Stay within two degrees, and you definitely have a connection at that company.”
• Join LinkedIn’s Groups: As with many social networks, LinkedIn offers a number of special-interest groups you can join. Groups most associated with your career are an obvious choice. But even groups that have more to do with hobbies or an outside interest can be a boon. In this case, more is more.
• Start a LinkedIn Group: This is probably one of the easiest ways to demonstrate to potential employers that you’re a self-starter, you know how to show initiative and you have the wherewithal to capture and direct the interest and enthusiasm of others (think executive-level skills). Starting a special-interest group will also ensure that you’re directing your energies to an effort that is most closely associated with your career goals.
• Participate in “Answers”: LinkedIn’s Answers service—a question-and-answer exchange supported solely by community members—is a great way to get noticed, get remembered and make contacts with other pros in the LinkedIn community whom you may not be able to meet in any other way.
• Import Your Professional Blog and Twitter Feeds Into LinkedIn: Offering easy access to content you’re generating elsewhere to further your career advancement is easy on LinkedIn. Any tweets you make on Twitter, for example, can be instantly syndicated on LinkedIn by checking a box in your profile. Add a simple link to your blog in your profile, and you’re set.  

Joe Dysart is an Internet speaker and business consultant based in Manhatten, New York.
Voice: 646/233-4089
E-mail: joe@joedysart.com
Website: www.joedysart.com

 

SEMA News - December 2010

The Chairman of the BTC Talks About Technology, Data and Why SEMA Companies Must Embrace Both

With Steve Campbell

While technology has been an undeniable force in the evolution of the automobile, it has also determined how cars and car parts are sold. From the first handbills to newspaper and magazine advertising to broadcast media and now the Internet, technology inevitably changes the way manufacturers, distributors and retailers sell their wares. As electronic cataloging has evolved over the past decade, the ability of parts suppliers, sellers and end users to source and find parts has gone from tedious to instantaneous—so long as sufficient and correct product information is available. Simply put, ample and easily understood information helps sell products. Bob Moore is a partner in J&B Service, a consulting company that specializes in the transportation parts aftermarket. Along with his partner, Jerry McCabe, Moore works with aftermarket companies on a variety of business building activities, including technology deployment. He began working in the automotive aftermarket in 1976 and has built a substantial career in addition to establishing a remarkable resume of volunteer work for industry organizations, including the Automotive Aftermarket Industry Association (AAIA), the Automotive Aftermarket Suppliers Association (AASA) and SEMA. He is a member of the SEMA Board of Directors and serves on its Executive Committee. As the co-founder and current chairman of SEMA’s Business Technology Committee (BTC), he is also a staunch advocate of moving the specialty-equipment industry toward the use of standardized product information data.

We recently spoke with Moore about his involvement in the BTC and the need for SEMA members to understand the crucial role technology plays in business.

SEMA News: How did you become involved with standardized industry data and the SEMA Business Technology Committee?

Bob Moore: Back in 2003 or 2004, Jon Wyly, who was then on the Board of Directors and an old friend of mine, called me and said he needed my help. He told me that SEMA had to really start getting serious about business technology, so I began to work with him. We formed the Business Technology Committee, and we’ve been trying ever since then to raise awareness and educate the SEMA constituency about the importance of product data and technology in doing business and, really, in surviving. After that initial focus on education, we set about trying to identify the areas where SEMA involvement and assistance would most benefit the membership. 

			“Over and over again, we find that the more information that is available, the deeper the data is, the greater the likelihood that the customer will buy, whether the customer is a jobbing store or a car owner.”

Much of the effort has been focused on trying to grow the size of the specialty-equipment market and make it possible for all of us to sell more products. Research told us that many vehicle owners spend the greatest amount of money in accessorizing their vehicles in the first six months of buying them. And we also know that the manufacturer who is first to market with a great new product will capture sales. That means we need to get our newest, hottest and most innovative parts out for people to see and to understand as soon as possible so that they can make purchase decisions. If we don’t, those people’s discretionary money gets spent on something else, such as a new barbecue or the latest electronic gadget.

Our ability to get our best new products to more places—more websites, more points of distribution, more big-box retailers, more auto parts stores—is the key to expanding our total market and greater sales. You can’t do that unless you’ve got good standardized, rich product information online. That might mean images or a wave file to listen to what a cat-back exhaust sounds like on the new Challenger, or it might be product specifications or installation instructions. The need for data is critically tied to our ability to expand our market, to get our parts into more physical and virtual places in order to sell them.

SN: We would assume that one of the biggest challenges is just getting people to accept the idea that good product data will actually sell more parts.

BM: That is the challenge. Many of the industry training programs bill themselves as helping one do things such as “drive more traffic to your website” and “expand your search-engine capability.” But at the end of the day, if consumers can’t find the information they need to help them make a purchase decision, it’s like running a huge marketing campaign to promote your store and then having the door locked when the customer shows up. It’s the same thing with data. You can drive all the traffic you want, but if customers end up frustrated by a lack of product information, no one
will buy.

To see what I’m talking about just go out and surf the web for electronic equipment—iPods, televisions, any kind of electronic equipment. Start clicking around and looking at the wealth of product information and specifications that’s out there. You can see watts per channel and dynamic ranges and graphs and all kinds of different information. You can drill down even to the minutia on those products. Then go out and shop for auto parts. You will have a hard time finding more than a static picture of a part with a list of some very basic specifications. Very few companies have the product data out there for consumers to really dig in to see everything they need to know to buy a part. More and more, customers for our industry’s products are turning to online sources to gather information before buying. Our industry needs to be there
for them.

The general state of product data in almost every other industry is much better than ours. But ours has some additional challenges. When you go into a store to buy a television, the salespeople don’t care whether you are going to put it into a house or an apartment or a condominium. But if you go in to buy a supercharger or a cat-back exhaust, it does matter what make, model and year of vehicle you’re putting it on. That adds a layer of complexity—an application-specific aspect of product data and data management that most other industries don’t have to deal with. Data for a piece of electronics might include its size, color and warranty. We need all that stuff, but we also need to know that it fits an ’08 Ford Mustang with a 4.6L engine.

SN: Has the industry made progress? Are more companies coming to understand the concept and embrace standardized data?

BM: I sometimes feel like an evangelical minister out there preaching the good word. Clearly, we have a choir, the folks who understand it. There are companies, such as K&N, that arguably have some of the best product data in the specialty-equipment aftermarket—maybe in the entire aftermarket, including the replacement side. And, of course, if you go out and look on websites, there is more information available on these companies’ products than on almost anybody else’s. They understand that it’s critical to selling, and their products are available at more places because they make it easy for AutoZone, O’Reilly Auto Parts, NAPA, CARQUEST and the motorcycle stores. Some brands are omnipresent, and one of the reasons—though certainly not the only reason—is that they understand the importance of product data and getting it out.

SN: The SEMA Board of Directors has been evaluating whether SEMA should establish an industry data pool. What is an industry data pool exactly? What should member companies understand about it?

BM: Recognizing that more product data in more places expands our reach, grows our businesses and sells more parts, it made sense to the Board of Directors that our industry should consider a mechanism that could help all of our participants—manufacturers and resellers—get the product data right so that it can get to more places. It’s kind of a two-step process. One of the key elements of sharing data is making sure that you can put it in a format that the other guy’s computer can read, understand and use. That means working with industry standards—a standardized way of presenting the data and how it’s configured so that one guy doesn’t say Chevy while the next guy is using Chevrolet. A computer won’t see the two as the same thing. It can process data quickly, but it can’t make judgment calls.

One example that seems to work for most folks is their iPod. You load your CDs onto your iPod or into iTunes, and then you try to find the music that you uploaded. You know you put John Mellencamp in there, but where is it? Well, it’s under John Cougar Mellencamp, because that was the name he was using on that particular album. The computer cannot make a rational judgment to say that it’s all John Mellencamp, so put it all in the same folder. A human being has to do that.

			“Our ability to get our best new products to more places—more websites, more points of distribution, more big-box retailers, more auto parts stores—is the key to expanding our total market and greater sales.”

Those same kinds of things happen with data unless we all agree that we’re going to have a standardized way to present it. Because that problem exists, the need to get product data into standardized formats is critical. Step one of the data pool would be working with the manufacturers to help them get their data into the industry standardized formats. For product attributes, that’s called PIES [product information exchange standard], and for catalog data, it’s called ACES [aftermarket catalog enhanced standard]. So a data pool would help them collect and format their data in such a way that it complies with the standards so that it can be brought into a standardized repository. After a kind of filtration process, information from the data pool can be sent out to the companies that need it.

The analogy would be a city that provides water to all its residents. Every homeowner could have a filtration system that filtered the city’s water so that it was all clean. But it’s more practical for the city to filter and standardize it once and then make available clean water to those who need it. That’s what a central, industry-sponsored data pool would do. If we can filter the data as it comes in from the source, the manufacturers, then we’re in a position to have available early, clean data to all the constituents, and we can save a huge expense for the industry. That’s the kind of thing that an association ought to do. That’s a good thing for SEMA to do.

SN: Who would fund this centralized and standardized system? Would each manufacturer who took part in the data pool pony up some portion of the cost?

BM: The association would use its resources to get the data pool established.  After that, the cost to run it would be shared, since everybody benefits.

SN: How far down do you drill with product attributes and product data? Would the data pool assign part numbers?

BM: Not at all. The originator—the manufacturer—owns the data. How much data is required is again a function of the free market. I talked to one distributor who had leaned on its manufacturers to provide some extra data because the distributor thought that it would sell more if it could provide some extra information to the customers who came to its website. Lo and behold, the distributor was right. Over and over again, we find that the more information that is available, the deeper the data is, the greater the likelihood that the customer will buy, whether the customer is a jobbing store or
a car owner.

	Moore is passionate about helping the industry understand the role of product information made available online. “The critical thing is to understand how important data is and will continue to be in doing business,” he said. “Nobody thinks we’re going to sell fewer products on the Internet going forward, and nobody thinks that retailers are going to be answering fewer questions from consumers.”

It’s a competitive issue. Increasingly, the big sellers—the Summits, the Jegs, the Amazons—are mandating a certain number of data fields because they understand that it’s important. So for a manufacturer, the amount of data provided is probably driven by who the customer is. The market defines what is needed.

SN: What is the current status of the pool?

BM: We have come a long way. The crew that has been working on it has been out listening to the marketplace. We’ve talked with literally dozens of manufacturers and dozens of data receivers. We’ve done face-to-face interviews and focus groups with them. We’ve done qualitative web-based studies asking questions about where both receivers and suppliers of data are having trouble and where they think they need help. We’re getting very close to having a complete business plan. We should have enough information to put before the Board for a final vote on the proposal by the first quarter of next year. We are also in talks with the Motor & Equipment Manufacturers Association (MEMA). MEMA has an initiative called OptiCat that is a data service for the replacement parts side of the industry. It is all very preliminary, but we are in conversation with them about joining forces and working together. We don’t want to confuse the industry by having competing services or duplicating efforts.

SN: How can SEMA members help to move the project along?

BM: The critical thing is to understand how important data is and will continue to be in doing business. Nobody thinks we’re going to have less product information online going forward, and nobody thinks that retailers are going to be answering fewer questions from consumers. Products are going to become more technically complex, and we will need to expand our products into places such as sporting goods stores, big-box stores and new-car dealerships. They have sophisticated systems, and we will need to provide them with good data in order for them to sell our products. Data is the new means of exchange. It is going to be at least as important as a great distribution system and great salespeople have been in the past. SEMA members need to understand that this is where things are going, and that business is only going to get more data dependent.

SN: Is the BTC also working on other projects? What are the highest-priority items?

Since its inception, the BTC has really been focused on trying to assess where the specialty market needs to go vis-à-vis business technology. Education is first. So much of what we’ve been trying to do is getting people to understand why technology and data are so important and then working with the community of manufacturers, distributors and technology developers to show how we can apply these tools to improve our processes and expand our markets. That is the primary driver behind everything. Members can find a wealth of archived SEMA webinars on business technology topics as well as online marketing tips at www.SEMA.org/webinars.  

SEMA News - December 2010

The Chairman of the BTC Talks About Technology, Data and Why SEMA Companies Must Embrace Both

With Steve Campbell

While technology has been an undeniable force in the evolution of the automobile, it has also determined how cars and car parts are sold. From the first handbills to newspaper and magazine advertising to broadcast media and now the Internet, technology inevitably changes the way manufacturers, distributors and retailers sell their wares. As electronic cataloging has evolved over the past decade, the ability of parts suppliers, sellers and end users to source and find parts has gone from tedious to instantaneous—so long as sufficient and correct product information is available. Simply put, ample and easily understood information helps sell products. Bob Moore is a partner in J&B Service, a consulting company that specializes in the transportation parts aftermarket. Along with his partner, Jerry McCabe, Moore works with aftermarket companies on a variety of business building activities, including technology deployment. He began working in the automotive aftermarket in 1976 and has built a substantial career in addition to establishing a remarkable resume of volunteer work for industry organizations, including the Automotive Aftermarket Industry Association (AAIA), the Automotive Aftermarket Suppliers Association (AASA) and SEMA. He is a member of the SEMA Board of Directors and serves on its Executive Committee. As the co-founder and current chairman of SEMA’s Business Technology Committee (BTC), he is also a staunch advocate of moving the specialty-equipment industry toward the use of standardized product information data.

We recently spoke with Moore about his involvement in the BTC and the need for SEMA members to understand the crucial role technology plays in business.

SEMA News: How did you become involved with standardized industry data and the SEMA Business Technology Committee?

Bob Moore: Back in 2003 or 2004, Jon Wyly, who was then on the Board of Directors and an old friend of mine, called me and said he needed my help. He told me that SEMA had to really start getting serious about business technology, so I began to work with him. We formed the Business Technology Committee, and we’ve been trying ever since then to raise awareness and educate the SEMA constituency about the importance of product data and technology in doing business and, really, in surviving. After that initial focus on education, we set about trying to identify the areas where SEMA involvement and assistance would most benefit the membership. 

			“Over and over again, we find that the more information that is available, the deeper the data is, the greater the likelihood that the customer will buy, whether the customer is a jobbing store or a car owner.”

Much of the effort has been focused on trying to grow the size of the specialty-equipment market and make it possible for all of us to sell more products. Research told us that many vehicle owners spend the greatest amount of money in accessorizing their vehicles in the first six months of buying them. And we also know that the manufacturer who is first to market with a great new product will capture sales. That means we need to get our newest, hottest and most innovative parts out for people to see and to understand as soon as possible so that they can make purchase decisions. If we don’t, those people’s discretionary money gets spent on something else, such as a new barbecue or the latest electronic gadget.

Our ability to get our best new products to more places—more websites, more points of distribution, more big-box retailers, more auto parts stores—is the key to expanding our total market and greater sales. You can’t do that unless you’ve got good standardized, rich product information online. That might mean images or a wave file to listen to what a cat-back exhaust sounds like on the new Challenger, or it might be product specifications or installation instructions. The need for data is critically tied to our ability to expand our market, to get our parts into more physical and virtual places in order to sell them.

SN: We would assume that one of the biggest challenges is just getting people to accept the idea that good product data will actually sell more parts.

BM: That is the challenge. Many of the industry training programs bill themselves as helping one do things such as “drive more traffic to your website” and “expand your search-engine capability.” But at the end of the day, if consumers can’t find the information they need to help them make a purchase decision, it’s like running a huge marketing campaign to promote your store and then having the door locked when the customer shows up. It’s the same thing with data. You can drive all the traffic you want, but if customers end up frustrated by a lack of product information, no one
will buy.

To see what I’m talking about just go out and surf the web for electronic equipment—iPods, televisions, any kind of electronic equipment. Start clicking around and looking at the wealth of product information and specifications that’s out there. You can see watts per channel and dynamic ranges and graphs and all kinds of different information. You can drill down even to the minutia on those products. Then go out and shop for auto parts. You will have a hard time finding more than a static picture of a part with a list of some very basic specifications. Very few companies have the product data out there for consumers to really dig in to see everything they need to know to buy a part. More and more, customers for our industry’s products are turning to online sources to gather information before buying. Our industry needs to be there
for them.

The general state of product data in almost every other industry is much better than ours. But ours has some additional challenges. When you go into a store to buy a television, the salespeople don’t care whether you are going to put it into a house or an apartment or a condominium. But if you go in to buy a supercharger or a cat-back exhaust, it does matter what make, model and year of vehicle you’re putting it on. That adds a layer of complexity—an application-specific aspect of product data and data management that most other industries don’t have to deal with. Data for a piece of electronics might include its size, color and warranty. We need all that stuff, but we also need to know that it fits an ’08 Ford Mustang with a 4.6L engine.

SN: Has the industry made progress? Are more companies coming to understand the concept and embrace standardized data?

BM: I sometimes feel like an evangelical minister out there preaching the good word. Clearly, we have a choir, the folks who understand it. There are companies, such as K&N, that arguably have some of the best product data in the specialty-equipment aftermarket—maybe in the entire aftermarket, including the replacement side. And, of course, if you go out and look on websites, there is more information available on these companies’ products than on almost anybody else’s. They understand that it’s critical to selling, and their products are available at more places because they make it easy for AutoZone, O’Reilly Auto Parts, NAPA, CARQUEST and the motorcycle stores. Some brands are omnipresent, and one of the reasons—though certainly not the only reason—is that they understand the importance of product data and getting it out.

SN: The SEMA Board of Directors has been evaluating whether SEMA should establish an industry data pool. What is an industry data pool exactly? What should member companies understand about it?

BM: Recognizing that more product data in more places expands our reach, grows our businesses and sells more parts, it made sense to the Board of Directors that our industry should consider a mechanism that could help all of our participants—manufacturers and resellers—get the product data right so that it can get to more places. It’s kind of a two-step process. One of the key elements of sharing data is making sure that you can put it in a format that the other guy’s computer can read, understand and use. That means working with industry standards—a standardized way of presenting the data and how it’s configured so that one guy doesn’t say Chevy while the next guy is using Chevrolet. A computer won’t see the two as the same thing. It can process data quickly, but it can’t make judgment calls.

One example that seems to work for most folks is their iPod. You load your CDs onto your iPod or into iTunes, and then you try to find the music that you uploaded. You know you put John Mellencamp in there, but where is it? Well, it’s under John Cougar Mellencamp, because that was the name he was using on that particular album. The computer cannot make a rational judgment to say that it’s all John Mellencamp, so put it all in the same folder. A human being has to do that.

			“Our ability to get our best new products to more places—more websites, more points of distribution, more big-box retailers, more auto parts stores—is the key to expanding our total market and greater sales.”

Those same kinds of things happen with data unless we all agree that we’re going to have a standardized way to present it. Because that problem exists, the need to get product data into standardized formats is critical. Step one of the data pool would be working with the manufacturers to help them get their data into the industry standardized formats. For product attributes, that’s called PIES [product information exchange standard], and for catalog data, it’s called ACES [aftermarket catalog enhanced standard]. So a data pool would help them collect and format their data in such a way that it complies with the standards so that it can be brought into a standardized repository. After a kind of filtration process, information from the data pool can be sent out to the companies that need it.

The analogy would be a city that provides water to all its residents. Every homeowner could have a filtration system that filtered the city’s water so that it was all clean. But it’s more practical for the city to filter and standardize it once and then make available clean water to those who need it. That’s what a central, industry-sponsored data pool would do. If we can filter the data as it comes in from the source, the manufacturers, then we’re in a position to have available early, clean data to all the constituents, and we can save a huge expense for the industry. That’s the kind of thing that an association ought to do. That’s a good thing for SEMA to do.

SN: Who would fund this centralized and standardized system? Would each manufacturer who took part in the data pool pony up some portion of the cost?

BM: The association would use its resources to get the data pool established.  After that, the cost to run it would be shared, since everybody benefits.

SN: How far down do you drill with product attributes and product data? Would the data pool assign part numbers?

BM: Not at all. The originator—the manufacturer—owns the data. How much data is required is again a function of the free market. I talked to one distributor who had leaned on its manufacturers to provide some extra data because the distributor thought that it would sell more if it could provide some extra information to the customers who came to its website. Lo and behold, the distributor was right. Over and over again, we find that the more information that is available, the deeper the data is, the greater the likelihood that the customer will buy, whether the customer is a jobbing store or
a car owner.

	Moore is passionate about helping the industry understand the role of product information made available online. “The critical thing is to understand how important data is and will continue to be in doing business,” he said. “Nobody thinks we’re going to sell fewer products on the Internet going forward, and nobody thinks that retailers are going to be answering fewer questions from consumers.”

It’s a competitive issue. Increasingly, the big sellers—the Summits, the Jegs, the Amazons—are mandating a certain number of data fields because they understand that it’s important. So for a manufacturer, the amount of data provided is probably driven by who the customer is. The market defines what is needed.

SN: What is the current status of the pool?

BM: We have come a long way. The crew that has been working on it has been out listening to the marketplace. We’ve talked with literally dozens of manufacturers and dozens of data receivers. We’ve done face-to-face interviews and focus groups with them. We’ve done qualitative web-based studies asking questions about where both receivers and suppliers of data are having trouble and where they think they need help. We’re getting very close to having a complete business plan. We should have enough information to put before the Board for a final vote on the proposal by the first quarter of next year. We are also in talks with the Motor & Equipment Manufacturers Association (MEMA). MEMA has an initiative called OptiCat that is a data service for the replacement parts side of the industry. It is all very preliminary, but we are in conversation with them about joining forces and working together. We don’t want to confuse the industry by having competing services or duplicating efforts.

SN: How can SEMA members help to move the project along?

BM: The critical thing is to understand how important data is and will continue to be in doing business. Nobody thinks we’re going to have less product information online going forward, and nobody thinks that retailers are going to be answering fewer questions from consumers. Products are going to become more technically complex, and we will need to expand our products into places such as sporting goods stores, big-box stores and new-car dealerships. They have sophisticated systems, and we will need to provide them with good data in order for them to sell our products. Data is the new means of exchange. It is going to be at least as important as a great distribution system and great salespeople have been in the past. SEMA members need to understand that this is where things are going, and that business is only going to get more data dependent.

SN: Is the BTC also working on other projects? What are the highest-priority items?

Since its inception, the BTC has really been focused on trying to assess where the specialty market needs to go vis-à-vis business technology. Education is first. So much of what we’ve been trying to do is getting people to understand why technology and data are so important and then working with the community of manufacturers, distributors and technology developers to show how we can apply these tools to improve our processes and expand our markets. That is the primary driver behind everything. Members can find a wealth of archived SEMA webinars on business technology topics as well as online marketing tips at www.SEMA.org/webinars.  

SEMA News - December 2010

The Chairman of the BTC Talks About Technology, Data and Why SEMA Companies Must Embrace Both

With Steve Campbell

While technology has been an undeniable force in the evolution of the automobile, it has also determined how cars and car parts are sold. From the first handbills to newspaper and magazine advertising to broadcast media and now the Internet, technology inevitably changes the way manufacturers, distributors and retailers sell their wares. As electronic cataloging has evolved over the past decade, the ability of parts suppliers, sellers and end users to source and find parts has gone from tedious to instantaneous—so long as sufficient and correct product information is available. Simply put, ample and easily understood information helps sell products. Bob Moore is a partner in J&B Service, a consulting company that specializes in the transportation parts aftermarket. Along with his partner, Jerry McCabe, Moore works with aftermarket companies on a variety of business building activities, including technology deployment. He began working in the automotive aftermarket in 1976 and has built a substantial career in addition to establishing a remarkable resume of volunteer work for industry organizations, including the Automotive Aftermarket Industry Association (AAIA), the Automotive Aftermarket Suppliers Association (AASA) and SEMA. He is a member of the SEMA Board of Directors and serves on its Executive Committee. As the co-founder and current chairman of SEMA’s Business Technology Committee (BTC), he is also a staunch advocate of moving the specialty-equipment industry toward the use of standardized product information data.

We recently spoke with Moore about his involvement in the BTC and the need for SEMA members to understand the crucial role technology plays in business.

SEMA News: How did you become involved with standardized industry data and the SEMA Business Technology Committee?

Bob Moore: Back in 2003 or 2004, Jon Wyly, who was then on the Board of Directors and an old friend of mine, called me and said he needed my help. He told me that SEMA had to really start getting serious about business technology, so I began to work with him. We formed the Business Technology Committee, and we’ve been trying ever since then to raise awareness and educate the SEMA constituency about the importance of product data and technology in doing business and, really, in surviving. After that initial focus on education, we set about trying to identify the areas where SEMA involvement and assistance would most benefit the membership. 

			“Over and over again, we find that the more information that is available, the deeper the data is, the greater the likelihood that the customer will buy, whether the customer is a jobbing store or a car owner.”

Much of the effort has been focused on trying to grow the size of the specialty-equipment market and make it possible for all of us to sell more products. Research told us that many vehicle owners spend the greatest amount of money in accessorizing their vehicles in the first six months of buying them. And we also know that the manufacturer who is first to market with a great new product will capture sales. That means we need to get our newest, hottest and most innovative parts out for people to see and to understand as soon as possible so that they can make purchase decisions. If we don’t, those people’s discretionary money gets spent on something else, such as a new barbecue or the latest electronic gadget.

Our ability to get our best new products to more places—more websites, more points of distribution, more big-box retailers, more auto parts stores—is the key to expanding our total market and greater sales. You can’t do that unless you’ve got good standardized, rich product information online. That might mean images or a wave file to listen to what a cat-back exhaust sounds like on the new Challenger, or it might be product specifications or installation instructions. The need for data is critically tied to our ability to expand our market, to get our parts into more physical and virtual places in order to sell them.

SN: We would assume that one of the biggest challenges is just getting people to accept the idea that good product data will actually sell more parts.

BM: That is the challenge. Many of the industry training programs bill themselves as helping one do things such as “drive more traffic to your website” and “expand your search-engine capability.” But at the end of the day, if consumers can’t find the information they need to help them make a purchase decision, it’s like running a huge marketing campaign to promote your store and then having the door locked when the customer shows up. It’s the same thing with data. You can drive all the traffic you want, but if customers end up frustrated by a lack of product information, no one
will buy.

To see what I’m talking about just go out and surf the web for electronic equipment—iPods, televisions, any kind of electronic equipment. Start clicking around and looking at the wealth of product information and specifications that’s out there. You can see watts per channel and dynamic ranges and graphs and all kinds of different information. You can drill down even to the minutia on those products. Then go out and shop for auto parts. You will have a hard time finding more than a static picture of a part with a list of some very basic specifications. Very few companies have the product data out there for consumers to really dig in to see everything they need to know to buy a part. More and more, customers for our industry’s products are turning to online sources to gather information before buying. Our industry needs to be there
for them.

The general state of product data in almost every other industry is much better than ours. But ours has some additional challenges. When you go into a store to buy a television, the salespeople don’t care whether you are going to put it into a house or an apartment or a condominium. But if you go in to buy a supercharger or a cat-back exhaust, it does matter what make, model and year of vehicle you’re putting it on. That adds a layer of complexity—an application-specific aspect of product data and data management that most other industries don’t have to deal with. Data for a piece of electronics might include its size, color and warranty. We need all that stuff, but we also need to know that it fits an ’08 Ford Mustang with a 4.6L engine.

SN: Has the industry made progress? Are more companies coming to understand the concept and embrace standardized data?

BM: I sometimes feel like an evangelical minister out there preaching the good word. Clearly, we have a choir, the folks who understand it. There are companies, such as K&N, that arguably have some of the best product data in the specialty-equipment aftermarket—maybe in the entire aftermarket, including the replacement side. And, of course, if you go out and look on websites, there is more information available on these companies’ products than on almost anybody else’s. They understand that it’s critical to selling, and their products are available at more places because they make it easy for AutoZone, O’Reilly Auto Parts, NAPA, CARQUEST and the motorcycle stores. Some brands are omnipresent, and one of the reasons—though certainly not the only reason—is that they understand the importance of product data and getting it out.

SN: The SEMA Board of Directors has been evaluating whether SEMA should establish an industry data pool. What is an industry data pool exactly? What should member companies understand about it?

BM: Recognizing that more product data in more places expands our reach, grows our businesses and sells more parts, it made sense to the Board of Directors that our industry should consider a mechanism that could help all of our participants—manufacturers and resellers—get the product data right so that it can get to more places. It’s kind of a two-step process. One of the key elements of sharing data is making sure that you can put it in a format that the other guy’s computer can read, understand and use. That means working with industry standards—a standardized way of presenting the data and how it’s configured so that one guy doesn’t say Chevy while the next guy is using Chevrolet. A computer won’t see the two as the same thing. It can process data quickly, but it can’t make judgment calls.

One example that seems to work for most folks is their iPod. You load your CDs onto your iPod or into iTunes, and then you try to find the music that you uploaded. You know you put John Mellencamp in there, but where is it? Well, it’s under John Cougar Mellencamp, because that was the name he was using on that particular album. The computer cannot make a rational judgment to say that it’s all John Mellencamp, so put it all in the same folder. A human being has to do that.

			“Our ability to get our best new products to more places—more websites, more points of distribution, more big-box retailers, more auto parts stores—is the key to expanding our total market and greater sales.”

Those same kinds of things happen with data unless we all agree that we’re going to have a standardized way to present it. Because that problem exists, the need to get product data into standardized formats is critical. Step one of the data pool would be working with the manufacturers to help them get their data into the industry standardized formats. For product attributes, that’s called PIES [product information exchange standard], and for catalog data, it’s called ACES [aftermarket catalog enhanced standard]. So a data pool would help them collect and format their data in such a way that it complies with the standards so that it can be brought into a standardized repository. After a kind of filtration process, information from the data pool can be sent out to the companies that need it.

The analogy would be a city that provides water to all its residents. Every homeowner could have a filtration system that filtered the city’s water so that it was all clean. But it’s more practical for the city to filter and standardize it once and then make available clean water to those who need it. That’s what a central, industry-sponsored data pool would do. If we can filter the data as it comes in from the source, the manufacturers, then we’re in a position to have available early, clean data to all the constituents, and we can save a huge expense for the industry. That’s the kind of thing that an association ought to do. That’s a good thing for SEMA to do.

SN: Who would fund this centralized and standardized system? Would each manufacturer who took part in the data pool pony up some portion of the cost?

BM: The association would use its resources to get the data pool established.  After that, the cost to run it would be shared, since everybody benefits.

SN: How far down do you drill with product attributes and product data? Would the data pool assign part numbers?

BM: Not at all. The originator—the manufacturer—owns the data. How much data is required is again a function of the free market. I talked to one distributor who had leaned on its manufacturers to provide some extra data because the distributor thought that it would sell more if it could provide some extra information to the customers who came to its website. Lo and behold, the distributor was right. Over and over again, we find that the more information that is available, the deeper the data is, the greater the likelihood that the customer will buy, whether the customer is a jobbing store or
a car owner.

	Moore is passionate about helping the industry understand the role of product information made available online. “The critical thing is to understand how important data is and will continue to be in doing business,” he said. “Nobody thinks we’re going to sell fewer products on the Internet going forward, and nobody thinks that retailers are going to be answering fewer questions from consumers.”

It’s a competitive issue. Increasingly, the big sellers—the Summits, the Jegs, the Amazons—are mandating a certain number of data fields because they understand that it’s important. So for a manufacturer, the amount of data provided is probably driven by who the customer is. The market defines what is needed.

SN: What is the current status of the pool?

BM: We have come a long way. The crew that has been working on it has been out listening to the marketplace. We’ve talked with literally dozens of manufacturers and dozens of data receivers. We’ve done face-to-face interviews and focus groups with them. We’ve done qualitative web-based studies asking questions about where both receivers and suppliers of data are having trouble and where they think they need help. We’re getting very close to having a complete business plan. We should have enough information to put before the Board for a final vote on the proposal by the first quarter of next year. We are also in talks with the Motor & Equipment Manufacturers Association (MEMA). MEMA has an initiative called OptiCat that is a data service for the replacement parts side of the industry. It is all very preliminary, but we are in conversation with them about joining forces and working together. We don’t want to confuse the industry by having competing services or duplicating efforts.

SN: How can SEMA members help to move the project along?

BM: The critical thing is to understand how important data is and will continue to be in doing business. Nobody thinks we’re going to have less product information online going forward, and nobody thinks that retailers are going to be answering fewer questions from consumers. Products are going to become more technically complex, and we will need to expand our products into places such as sporting goods stores, big-box stores and new-car dealerships. They have sophisticated systems, and we will need to provide them with good data in order for them to sell our products. Data is the new means of exchange. It is going to be at least as important as a great distribution system and great salespeople have been in the past. SEMA members need to understand that this is where things are going, and that business is only going to get more data dependent.

SN: Is the BTC also working on other projects? What are the highest-priority items?

Since its inception, the BTC has really been focused on trying to assess where the specialty market needs to go vis-à-vis business technology. Education is first. So much of what we’ve been trying to do is getting people to understand why technology and data are so important and then working with the community of manufacturers, distributors and technology developers to show how we can apply these tools to improve our processes and expand our markets. That is the primary driver behind everything. Members can find a wealth of archived SEMA webinars on business technology topics as well as online marketing tips at www.SEMA.org/webinars.