In a recent blog titled The Times They Are (Always) A-Changin’ I mentioned a few of the acquisitions that have recently taken place and I wrote about why an owner might consider that selling at this time is a good choice.
“There are many ways for your business to remain relevant and continue to survive in the retail world. Whatever you believe it is that you must do to remain relevant you need to make sure that your customers believe it too. For some businesses remaining relevant may mean selling or merging with a competitor. In recent weeks several businesses have announced that they are doing just that.”
Later in that paragraph I wrote:
“During the past 30 years, a number of companies have acquired others in the AGRR industry to increase their own market share and separate them from or take out competitors. It certainly seems that there has been an uptick in acquisitions of companies of all sizes and I’m sure you’ll be hearing of others very soon.”
It didn’t take long to hear of others. On December 31, 2012, The Boston Globe posted on its www.boston.com web site a story titled “Safelite declines to comment on talks to buy Giant Glass”. If the story was true it was big news in the greater Boston market. Safelite has been trying to regain its position in New England for a number of years. A couple of days later it was confirmed by glassBYTEs™ and also in a story titled, “its official: Giant Glass is now owned by Safelite”. As a local company Giant Glass advertised against using “national” companies, but now Giant isn’t a local company anymore and its now owned by a company that’s headquartered in Belgium. I wonder how that’s going to play in the marketplace. Then last Friday, January 11, 2013 glassBYTEs™ posted another article titled “Safelite Acquires Second New England Area Shop this Month” reporting the acquisition of Windshield World based in Vermont.
There are all sorts of good and bad reasons to buy or sell. I think we’ll be hearing of further acquisitions announced by Safelite, Gerber and others in the near future. Maybe you’re hearing some of the same rumors that I’m hearing?
Regardless of the ongoing consolidations that are taking place I’m certainly a firm believer that there are opportunities for independents in the automotive glass repair and replacement (AGRR) industry. In order to be successful you’ve got to make sure that you surround yourself with the best people and that they are committed to the goals and aspirations that you have for your business. You’ve got to deliver on the promise of providing the best service and products that you can versus your competitors and then do it at a fair price. In The Times They Are (Always) A-Changin’ (Part One) I wrote,
“Other ways you can remain relevant are by finding that unique selling proposition (USP) that separates you from your competitors. So what is that something that only you can do in your market, something that raises the bar so high that your competitors either can’t or won’t try to achieve it therefore distinguishing you from others in the eyes of consumers? If you find that USP, you will survive against other retailers in the battle royal that exists in your market. Of course the need to find that extra something has always existed in business, but maybe more so today with the pace of change that you see across the retail industry. When you see the mega-retailers like Amazon.com and Wal-Mart fighting over current customers to determine which will find the USP that will secure future customers and separate it from others, you know that the same battles that have been going on for years aren’t subsiding anytime soon. It is the same in the AGRR industry and you can be sure that things that you’re doing today in your business will change tomorrow and you need to change with it.”
In times like we’re in now you need to focus on what you’re doing and how you can differentiate yourself from your competitors. Non U.S. based companies like Safelite and Gerber seem to be gobbling up the competition. Find your USP and find a way to compete. As the cartoon below suggests, “keep changing the game”.
Cartoon courtesy of http://www.TomFishburne.com