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Press Release

Study Reveals Sales and Pricing Best Practices among Commercial Vehicle Parts Suppliers

Washington, DC, and Research Triangle Park, NC - The NAFTA commercial vehicle industry is facing one of its most difficult periods in decades due to economic and EPA regulatory issues. Commercial vehicle OEM component suppliers are under intense pricing pressure in the tightening market.

A new study, "Sales Best Practices among Commercial Vehicle Parts Suppliers,” released today by the MEMA’s Heavy Duty Manufacturers Association (HDMA) and Kotler Marketing Group, provides a blue print for how commercial vehicle parts suppliers can address these challenges.

One of the study’s major findings is that suppliers’ sales and negotiation efforts vary widely, both in terms of the practices they follow, and their success at defending price. While most respondents said they won price premiums on less than 25% of their recent bid wins, more than a third reported that they won price premiums on most orders. These best-practice suppliers regularly win business without having to match the lowest bidder.

The study identifies the sales and pricing “Best Practices” that allow these suppliers to out-negotiate their peers.

"This report offers all commercial vehicle component suppliers – from Tier I’s to raw materials suppliers - a prescription of actionable best practices that they can adapt their business practices to and implement immediately” said Tim Kraus, President and COO of the Heavy Duty Manufacturers Association. “This unprecedented study of our industry comes at a critical time when suppliers need to sharpen their bottom lines the most.”

This study is an invaluable resource for executives charged with improving sales effectiveness and increasing margins. Moreover, sales and marketing teams will find it to be a valuable source of ideas to incorporate into their account-level sales tactics and strategies.

Kotler Marketing Group ( conducted the study between December 2008 and January 2009. Senior executives and sales professionals from nearly 70 HDMA member companies provided input on more than 30 different business metrics and sales practices. Suppliers surveyed included Tier I and Tier II/III suppliers, as well as raw materials suppliers.

For more information on the study, visit

About HDMA
The Heavy Duty Manufacturers Association (HDMA) has served the strategic needs of its 180+ member companies and the commercial vehicle industry since 1983. A market segment association of the Motor & Equipment Manufacturers Association (MEMA), HDMA’s mission is to be the industry’s primary advocate for the members of the commercial vehicle supplier community. With a continuous focus on its members, HDMA strives to advance the image and interests of the industry and its member companies. More details are available at

About Kotler Marketing Group
Kotler's Value-based Services Practice has built a track record of success at helping companies in the automotive and heavy duty industries implement value-based sales and marketing strategies. Our consultants and training programs help clients document and demonstrate the value of innovative products & services. We have advised and trained hundreds of parts suppliers on their sales, marketing and negotiation strategies, including Continental, PPG, 3M, BASF, ExxonMobil, Michelin, Hendrickson, SAF Holland, Acument, Cummins Westport, Arcelor Mittal, ITW, and Saint Gobain

For more information on the Kotler, visit

Tony Kotler
Kotler Marketing Group



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