AutoXray: Sales Growth

AutoXray had early sales growth success until a change in industry standards for Automotive Diagnostics was mandated by the EPA.  This meant all diagnostic tool manufacturers had to incorporate new platforms to handle the changes. AutoXray was no different as it was a fledging startup being faced with a major retooling project right at its most critical time.  During this period AutoXray was seeking venture capital to fund the development of new products and fund growth.  (see no funding)  It was unsuccessful at raising capital and had to run the company as cost efficiently as possible. This had a major impact on its tentative foothold in distribution as the retooling process took nearly a year and half, dramatically impacting sales.  AutoXray was fortunate to retain a few key customers that kept the doors open.

Starting all over.
The new product line was released, new packaging was developed and AutoXray had a new national retailer that wanted to promote the diagnostic tool line as a way to bring new customers into its stores. They felt electronic diagnostic tools were the "wave of the future" rekindling the interests of the “do-it-yourselfer” and bring them back into the stores of sagging retailers.

One national chain was willing to promote this product line in a manner that was truly ground breaking.  They were willing to forgo precious end cap space and the dollars that were associated, for the promotion of their new traffic driving concept.  The end cap was a special display that featured automotive diagnostic equipment.  It had actual product mounted to the display so the customers could look, feel and read about the product without the interruption of sales clerks that may not be very informed about the new technologies being offer.

For years the retailer had theft problems with expensive big ticket items like these and usually mandated that the store managers keep them behind the counter or under lock and key in the warehouse.  Needless to say this lack of exposure does little for sales. This innovative new display was going to allow customer access to the product and let them learn about the product themselves before they make a purchase decision. The program was a huge success, 1400% sales increases in automotive diagnostic scan tools alone.

GD Mac did not invent or design the end cap display or even apply it to automotive diagnostics.  We did recognize that the industry was starved for something like this in different form factors for all the different types of distribution. Our idea was to create a custom display that was affordable enough for all distribution outlets to get involved.  Our set of promotional designs included four formats of counter top displays that could be purchased by the reseller with for AutoXray products for resale for under $1000.  There was very little barrier for the reseller, it was cheap and they were getting a complete Sales & Marketing kit built for success. This program was designed for warehouse distribution chains and smaller automotive retailers. We worked the program from the bottom up to the middle.

We replicated this display program for other national chains and once again worked the program from the top to the middle.  We were now covering all the major distribution channels with light penetration, as successes grew it provided us with the opportunity to deepen our penetration.  Educating and sharing these  retail success stories with other potential customers was critical to their acceptance of the AutoXray program.

Our marketing plan was in full swing, we had effective distribution, our PR team was generating good solid editorial coverage and customers were reading about the products which they could purchase nationwide.  This economic engine can stall in so many different ways, it is very important to have a comprehensive marketing plan working in conjunction with sales for the entire process to work together effectively.  Most often marketing budgets are spent on top heavy advertising first. (See Public Relations vs. Advertising) We believe this is one of the most repeated small business mistakes and certainly one of the most expensive.

Within a five year period GD Mac assisted in a 250 fold increase in sales of AutoXray products.  It established AutoXray as a prominent brand in the marketplace ultimately making it an attractive target for acquisition by larger industry players.

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· Acquisition
· The Brand
· Event Planning
· Finding Money
· Loyalty
· No Funding.com
· Patents
· PR vs. Advertising
· Sales