Aftermarket Parts: What Does “Private Label” Mean?
Image: Mack Trucks
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The further we get from the engine, the greater the likelihood that fleets will use private label parts, contended Stu MacKay, president of market-research firm MacKay & Co., during a talk at the recent Heavy Duty Aftermarket Dialogue event in Las Vegas.
McKay’s remarks, given ahead of a panel titled “The Current Architecture of the Private Label,” were based on a MacKay survey in which 16% of the respondents said they use private-label parts.
Hugh Charvat, CEO of AP Exhaust and panel moderator, said, “This will always be a branded industry, but private label has carved a niche.” He said private-label parts account for 20% to 25% of the $30 billion truck parts aftermarket.
Image: Mack Trucks
“>According to James Chenier, vice president parts sales and marketing for Volvo Trucks, people think of private-label parts as the “good” in the good-better-best continuum. But he added that there are a number of reasons other than cheaper price for selecting private-label parts.
Terri Roseman, director of category management and marketing at FleetPride said, “Private label does not always mean cheaper. We can define features and benefits of [our private-label products].”
Regardless of the reason, Carlos Junquera, vice president of North American sales for Navistar, said that quality has to be there when it comes to private label. He said that Navistar uses the same quality standard for its branded and private-label parts.
David Danforth, general manager and vice president of Paccar Parts, explained that when the company launched TRP parts, its private-label line, “We validated and tested products.”
Charvat asked the OEMs on the panel why they created private-label parts lines. “We have vehicles that last 25 years and [private-label] parts allow me to do business at a price point. I want to be relevant for 25 years and allow the customer to …Read the rest of this story
