89 2015 Technical criteria Expert, researcher and interactive. This is the profile of the road implement purchaser. He gets quotations and reflicts for 15 to 30 days before closing a deal Although the road implement is a critical piece to a carrier activities and it is part of his technical know-how, there must not be any rush in buying it. Before the final decision is made, there is a “rite” to be followed: first comes the concern for accuracy in the choice of the product, after all, investment is considered somewhat high. With this in mind, the purchaser goes hunting the best deal. “This task is usually done by the owner itself, but many companies have professional management and delegate this function to a purchase executive,” reveals Alarico Assumpção Junior, Head of the National Association of Vehicle Distributors (Fenabrave). The transaction differs by the level of knowledge of the one who is “across the counter”, even so distributors have to talk about the product features and show differentiating factors that are not always known to the purchaser. He usually visualizes the product as part of the fleet management. For instance: which products will be carries and what are the distances to be traveled, among other factors. “Naturally, technology and quality are part of the requirements,” says Alarico Assumpção. However price still has significant influence on the purchase decision. “It’s hard to sell implement”, emphasizes the business leader of the vehicle distribution market. Although this segment still maintains a certain loyalty to the product brand and the dealer, it is still characterized by high price quotation rate in the market.. Alarico Assumpção understands this attitude, and interprets it as a strategy that the business owner or self-entrepreneur has to keep track of investments within what is sorely needed. An example of this tradition in the segment is a commercial campaign promoting a product price-cutting. “Some people like certain brands because of the quality of the implement and support services offered by the manufacturer and its network, mainly in the after sales service. So the consumer seeks this brand first,” claims Alarico Assumpção. However, when the products are on sale, even when offered by the competitors, in most cases the price overcomes all the other factors. According to the Head of Fenabrave, it is not very common to see products on sale, situation which occurs when there is high availability of stock. In those circumstances, many carriers rush and take the opportunity to renew part of their fleet. The sales process is considerably slower when products are not on sale. Even after extensive research, buyer can take up to 30 days to come to a decision. The predominant form of payment is the financing, loan granted by the Federal Government, with attractive terms and interest rates. Last year, for example, financing was responsible for 72% of sales. Interactivity with the factory But, to get an idea on how this market is sensitive to economic fluctuations, Alarico reveals that due to changes announced by the Brazilian Development Bank (BNDES) 2015 started differently. Restricted credit and higher rates caused cash sales to reach a level of 40% in the first two months. Chattel mortgage felt from 68% (2014 total) to 50% in January and February 2015, while title retention increased from 4% to 7% over the same period. Another feature of the road implement purchaser is the interactivity. He is always communicating with the dealer to give praise, criticisms and suggest changes for the products. The dealer, in turn, presents the list to the manufacturer, which maintains high percentage of service, especially when it is not an individualized claim, but an improvement for everyone. “About 50% of the suggestions are accepted and adopted,” says Alarico Assumpção. Regarding contacts and relationships, the Head of Fenabrave ensures that agreements between manufacturers and distributors are positive. “So that both parties are satisfied, they must be on the same page and together. When two groups are in different positions, there is no effective communication, enthusiasm, or prosperity”, he explains. “The manufacturer’s intelligence makes him understand that we are their brand in the field, together with the consumer. This is interesting and productive “, he celebrates. When asked about his own suggestion regarding innovations to be made in national implements, Alarico Assumpção highlights the need for technology development,” as it is in the United States and Europe”. But even he has doubts whether the Brazilian consumer is willing to pay more, especially in a year of downturn in economy, such as 2015. As to other aspects, he thinks the market is well and will overcome its difficulties.
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