Why did Pearson Ham Group acquire Factor Sales?

In this latest PMF exclusive, Alex Jenner provides the lowdown on Pearson Ham Group. This is the company that acquired Factor Sales back in 2022. Alex reveals what the acquisition and subsequent investment meant to the future of the leading market measurement data provider and how it impacts its partners today – perhaps you’re one of them!

Delivering market reporting on the aftermarket’s size, revenue and price trends of thousands of parts and consumables, Factor Sales has played an important part in motor factors and suppliers’ day-to-day lives for many years; however, when Pearson Ham Group knocked on its door, Peter Seagrott, the then chairman of Factor Sales, believed independent aftermarket analysis and insights would be taken to “new levels” and “advanced pricing insights would help make better pricing decisions”.

Q. The obvious question, therefore, is who are Pearson Ham Group and what did it see in Factor Sales that inspired the owners to buy the company?

A. “Pearson Ham Group (PHG) are pricing specialists, and with Factor Sales came an opportunity to make a difference in a new sector that was – and still is – crying out for more attention on data and pricing.

“It is a sector that PHG did not have a wealth of experience in, yet one that had always interested the company. It was an exciting route to go in. As it is such a competitive environment and pricing is paramount, the timing was right for PHG to put its knowledge and experience to good use!”

Q. What’s changed since Pearson Ham Group’s purchase?

A. “A number of things, both within the automotive world and internally at Factor Sales/PHG. There has been a definite shift in the perception of data and its usefulness within the sector; businesses are now realising how to gain an extra advantage to strengthen their offerings and market position. Whether that be identifying gaps in their product range, optimising their prices, or using data to recognise market trends and therefore increase their customer satisfaction through correct stock holding.

“Within PHG there has been a steep learning curve in just how unique the segment is, and that its own product needs to constantly evolve to match the needs of the market.”

Q. Since it took on the company, has Pearson Ham Group’s investment translated into a stronger service and proposition to both motor factors and suppliers? If so, can you give examples?

A. “The Factor Sales platform now boasts an updated and much more interactive method of working with the transactional data for both factors and suppliers. PHG has also spent a lot of time focusing on the accuracy of that data and have carried out numerous large projects which focus on just that. The largest of which has seen the technical team build up an entirely automated coding function which uses AI and machine learning to accurately decipher and categorise the circa 1,000,000 part numbers Factor Sales receives data on daily.

“The monthly snapshots that factors receive go far beyond the original weekly PDFs, all of which was built off customer feedback. They allow motor factors to benchmark their sales against national averages, assess performance and growth trends across product categories, and identify rapidly growing aftermarket products.

“For motor factors seeking an even more comprehensive analytics solution, Factor Sales offers a premium service hosted in Tableau. This service allows for high-level analyses of sales and growth metrics, with capabilities to drill down into product, range, or category performance, customise date ranges, and perform regional analysis for deeper insights. Subscribers can review performance across their network of branches, enabling them to understand why certain branches outperform others and make data-driven decisions to enhance overall business performance.”

Q. What do you think it is about Factor Sales that interests motor factors most?

A. “There isn’t anything quite like Factor Sales out there; the depth of the data is making a difference when it comes to factors’ strategies. It can be seen as a bit of a ‘cloak and dagger’ sector, but Factor Sales helps remove some of this. Data can’t lie, and it gives a true picture of what is going on in the sector.”