BECOMING A RHINO LININGS APPLICATOR IS PROVING A GOOD STRATEGY FOR MANY DEALERS IN CANADA
North Americans like trucks. They consistently buy them in huge numbers and particularly for Detroit automakers and their dealers, pickups are a huge source of profit. Additionally, many truck buyers whether fleet or retail customers, often choose to accessorize their vehicles and in many cases the first feature they add is a bedliner.
With margins on new vehicle sales generally shrinking, dealers are looking at other revenue sources and truck accessories are proving a popular avenue. That’s something that Rhino Linings Corporation has been keenly aware of. Founded in 1988, the company has grown to become a market leader in spray-on bedliners, which now account for more than 50 per cent of the overall truck bedliner market.
Based in San Diego, Calif., Rhino Linings has seen substantial growth in demand for its products across North America. “Auto dealers and collision centres have been some of our strongest customers,” says Jennifer Clifford, Vehicle Protection Sales and Marketing Manager with Rhino Linings. Clifford says that sales to applicators saw a 29 per cent increase in 2013. What’s also interesting is that dealerships accounted for 29 per cent of those new applicators last year.
LOW-PRESSURE
Trends in the market are always interesting to watch and when Rhino Linings first started, the spray-on market was dominated by low-pressure applications. As things progressed, more and more applicators chose to go with high-pressure systems in order to meet ever increasing quality standards demanded by their customers.
Today, Clifford says that a combination of factors, such as advancements in technology, ease of operation and low maintenance have seen a resurgence in interest for quality low-pressure applications, one reason why Rhino Linings has introduced a new low-pressure Duraspray system. “The increase from retailers inquiring about adding Rhino Linings to their business has been tremendous,” says Clifford “and for those looking to get into the market, a low-pressure system where equipment costs are significantly less, can help applicators achieve faster ROI, especially in less populated, more rural markets.”
In Canada, Rhino Linings has seen great response from dealers. “I’m actually quite amazed at the number of dealers that contact us,” says Clifford. “I can see all the leads that come into our offices and we probably average 10 leads per day, just for Canada.”
Stores in Canada which have become Rhino Linings applicators have seen big results in only a short length of time. A recent example is Boundary Ford Sales, in Lloydminster, Alta.
RAPID RESULTS
General Manager Joe Holland says that although the store officially became a Rhino Linings applicator on November 1, 2013, it is now spraying 80 per cent of its new trucks and 100 per cent of its used pickup inventory. “Margin is really good on the product,” says Holland “and we haven’t had any issues with customer take, nor dealer transfer take on it.”
In fact, Holland says his biggest problem right now is capacity. “Currently we are able to spray three trucks per day,” he says, “but with over 100 trucks coming within a 30 day period and 80 of those needing to be sprayed (which doesn’t include our used inventory) we are looking at options to expand our operation.” Holland says he’s really happy Boundary Ford made the decision to go with Rhino Linings; “we should have done it sooner,” he says. Holland notes that while the initial setup costs can be significant, the training and support Rhino provides, as well as the quality of the product and the ROI make it a very good long-term investment.
Pierre Gagnon, President and CEO of Rhino Linings says that dealers that treat their applicator status as a separate business within their umbrella and dedicate resources to it, as well as promote their association with Rhino Linings, tend to be those that “have the most success.”
For more information visit www.rhinolinings.com
