In 2022, the construction machinery market declined seriously. In addition to the impact of the COVID-19, not only did the sales of complete machines encounter great difficulties, but the low opening rate also led to the idleness of many equipment. The demand for accessories was also shrinking significantly, and the accessory stores felt great pressure.
How should accessories stores survive when the market declines?
Prepare for cash flow
In this epidemic, many elderly people with underlying diseases have encountered great difficulties. For example, diabetics need to take hypoglycemic drugs every day to control their condition. Once there is a shortage of drugs, their lives will be in danger. In fact, the cash in the accessories store is just like the antidiabetic drugs for diabetics. It can save your life!
So please cherish cash. How long can the company's cash flow support according to the current sales volume? Three months, one year or six months? Thus, what actions the company needs to take to save, such as layoffs, discounts and promotions, downsizing and active marketing.
In particular, the parts store should be reminded that at this time, the parts sales of manufacturers and agents are not smooth. They are likely to discount the original parts and clean up the sluggish inventory, especially the "national three" engine parts. In any case, don't be greedy at this time. Take out a large amount of money to buy a large number of original parts, thinking that you can make a lot of money by selling them. What if it doesn't sell? That'll kill you!
No matter how cheap the accessories are, calculate how long you can digest them before you sell them, otherwise you will face greater cash flow difficulties.
Improve inventory planning and management
Increase revenue and reduce expenditure. On the one hand, reduce costs, on the other hand, improve efficiency. Most parts stores have extensive management problems. When the market is good, these problems do not show up. Only when the sea water recedes can we know who is swimming naked.
Many parts stores lack data and plans, so they will close down sooner or later. The inventory of spare parts is bought with money. If it is well managed, it is "current assets", and money begets golden eggs. If it is not well managed, it is "fixed assets", and money becomes scrap iron. Check the proportion of sluggish inventory in the spare parts warehouse and calculate the inventory turnover rate. When the business is not busy during the depression, it is the best time to take stock, clear the warehouse and improve management. Find problems and find solutions. When the market recovers, the accessories store can operate accessories more scientifically and efficiently, so as to make the company more competitive.
At the end of the Second World War, British Prime Minister Churchill said a famous saying: "never waste the crisis in vain". Bosses should not think that the only way out in times of crisis is to withdraw the rent, lay off people or withdraw from the parts business. There are still parts stores after 100 years. It is not the problems in the parts business, but the problems in our operation.
Keep old customers
Crisis time is also a time for the defense of old customers. If you have no customers, you really have no hope. On the one hand, prevent competitors from taking away your old customers. On the other hand, help those old customers who have helped your business.
At this time, it is also difficult for customers. If customers withdraw from this industry, there will be no chance for parts stores. Therefore, within the scope of our ability, we should keep those old customers and tide over the difficulties of the epidemic.
In the face of the crisis, some manufacturers begin to try new models, and some agents have problems in operation and withdraw from the market. The parts store will have the opportunity to cooperate with manufacturers and agents to provide complementary customer service and parts supply. The premise is: you should be good enough.
We have entered the digital age. If your accessories store does not have data, you must make changes immediately. The data can make your inventory and operation healthier.
