5 things job shops need to know about today’s parts buyers

Does your job shop want to win more business? You need to know what parts buyers are thinking. Get that right, and you'll have an edge on the competition. Getty Images

Thanks to the Amazon Effect—the disruption of the retail market caused by online shopping—customer expectations have changed drastically in recent years. People now demand easy, seamless, online interactions in both their personal and professional lives, and that trend is changing the way parts buyers interact with job shops.

The custom parts manufacturing industry is facing the same consumerization affecting most verticals today. Modern buyers expect flawless customer service, fast lead times, and immediate shipping. Job shops need to understand and adapt to buyers’ expectations or risk losing business and shutting down.

Five Factors to Consider

Paperless Parts surveyed more than 400 parts buyers to understand their habits and expectations. These findings from the “2020 Part Buyers Expectations Report” can help job shops modernize their business, become buyer-first organizations, stay competitive, and grow their business:

1. Seventy percent of buyers used a Google or internet search to find new suppliers in the last year. Having an online presence is critical in today’s digital market. If most buyers are looking online to find their suppliers, job shops need to make sure they have a website to be discovered. Otherwise, they may never be considered by buyers who would otherwise be a good fit for their business.

This online focus is growing with changes in the buyer demographic, as well as broader industry trends. Most buyer respondents were in their 30s and 40s, and they expect seamless online transactions. Additionally, large companies want to streamline procurement costs for profitability, so buyers must manage more vendors and move more quickly than ever. Knowing this, job shops should ensure their business is easy to find online.

2. Buyers say a job shop’s capabilities are most important when deciding if they want to work together. Because buyers are now using the internet to discover suppliers, job shops should clearly communicate all their capabilities on their website. It’s important for job shops to remember that today's younger buyers have less experience with manufacturing technology compared to seasoned pros. For instance, they may not know what a job shop can produce on a 5-axis machining center, so outlining it online will give shops a big advantage.

In addition, job shops’ web presence must be high quality—polished, informative, easy to navigate, and quick to load. Forty-three percent of buyers check to see if a job shop has a website when determining if they want to work together, and 30% leverage check social media accounts. A modern online presence indicates to buyers that a job shop will be a modern manufacturing partner.

3. Sixty-seven of buyers expect a quote in less than 24 hours. Another 94% of buyers won't wait longer than three days. Immediacy is a major part of the modern buying experience, so job shops should prioritize the speed of their quoting process.

Many job shops waste time engineering quotes or are bogged down by bottlenecks and manual processes. To stay competitive in today’s market, job shops must invest in modern tools such as a digital quoting platform. By digitizing internal processes, shops can make quotes more accurate and expedite turnaround.

4. Seventy-five percent of buyers say they make a decision in a week or less after receiving a quote. Immediacy is not one-sided: Buyers also are quick to make their purchasing decisions. Knowing this, it’s critical that job shops follow up on every quote they send. Not only will this personal touch help increase win rates, but it’s necessary for capacity planning. Many job shops set aside potential capacity for work that was quoted weeks ago, but if a buyer didn’t respond within one week, the job was likely lost. It’s important for job shops to know when they’ve lost work so they can free up capacity for new jobs.

To optimize planning and capacity, shops should invest in tools that show the status of quotes so salespeople know when to follow up with buyers and when to move on.

5. Ninety-two percent of buyers are willing to pay extra to get their parts faster. Buyers expect speed and immediacy for their orders. There is an opportunity cost associated with slower delivery, which buyers often are responsible for mitigating. Knowing this, job shops should offer customers an option to pay more for expedited service on every quote. Buyers don’t always communicate that they need expedited service or that they are willing to pay more for it, so job shops must take the initiative. Using digital quotes allows shops to offer multiple options, making the process more convenient for buyers and lucrative for the business.

Invest Now to Thrive Later

In today’s custom parts manufacturing industry, there is a need for speed, seamless buying experiences, and a strong online presence. These expectations might seem daunting, but with digital tools, they are right within grasp.

Digital quoting alone can address several demands from today’s buyers, from faster turnarounds to seamless customer service to digital experience. Even though it requires some upfront resources, shops need to invest now to thrive later.