Hedges & Co. is a type of uncommon small companies that has flourished, moderately than languished, on account of coronavirus disruptions.
The digital advertising company, owned by Hudson residents Julie and Jon Hedges, specializes within the automotive aftermarket, serving to producers, retailers and suppliers of alternative components and automobile equipment use on-line channels to attach with clients.
It additionally tracks e-commerce tendencies associated to aftermarket buying, which went up — manner up — after we have been all caught in our properties earlier this 12 months.
The corporate initially pegged 2020 on-line aftermarket income at $14 billion within the U.S. however not too long ago up to date its forecast to $16 billion, citing $1.9 billion in incremental on-line purchasing on account of the pandemic. General, it expects to see e-commerce spending on aftermarket components and equipment to extend 30% this 12 months over 2019.
That is excellent news for the Hedges, whose 12-person operation manages tens of hundreds of thousands of {dollars} in annual on-line advertising for aftermarket shoppers. Collectively, these shoppers, based on Jon Hedges, have greater than $100 million in annual income.
“And they’re positioned throughout the US, Canada and Europe, which is typically onerous even for me to consider,” he mentioned.
The Hedges began their firm in 2004, combining Jon Hedges’ twenty years of expertise within the automotive trade — together with advertising and promoting roles at Cuyahoga Falls-based Summit Racing and Stylin’ Vehicles in Independence — with Julie Hedges’ information of market analysis.
Early on, she mentioned, a lot of aftermarket gross sales was nonetheless catalog-based, and the two-person agency targeted on analysis and consulting.
“I must persuade folks to do on-line surveys,” she recalled. “That was a radical idea again then.”
As e-commerce started to take off, the couple noticed a possibility to leverage their information of and contacts within the automotive aftermarket class and pivot into digital advertising targeted on that area of interest. Jon Hedges mentioned their firm was the primary Premier Google Accomplice and Microsoft Promoting company “totally devoted to the components and equipment automotive aftermarket.”
The corporate made its first rent and moved out of the Hedges’ dwelling in 2008. At present, its Darrow Highway places of work are on the town’s south facet.
Hedges & Co.’s capabilities embody search engine and pay-per-click optimization in addition to e-mail advertising on the digital facet.
“An necessary element of it’s ensuring our shoppers get in entrance of the best consumers,” Julie Hedges mentioned. “It is a finesse form of advertising (that entails) being in entrance of certified consumers with out exhibiting up for everybody who goes on-line to, say, purchase tires.”
The corporate additionally sells mailing lists and automobile information info and has emerged as a thought chief for the aftermarket trade. The Hedges have been featured audio system at automotive trade conferences, and their analysis and tendencies are frequently printed in commerce publications and by nationwide information organizations.
Jon Hedges mentioned the corporate handles the continuing digital advertising wants of about 40 shoppers. These embody retailers promoting OEM alternative components, along with specialty suppliers that supply gadgets resembling restoration parts for traditional automobiles and components for off-road and heavy obligation automobiles and even watercrafts.
“It is far and wide, however all inside that automotive aftermarket class,” he mentioned.
Remaining centered on its area of interest experience has been the corporate’s secret sauce. When shoppers depart large promoting outfits for Hedges & Co., “they typically say it is as a result of earlier company didn’t know a lot about automotive,” Jon Hedges mentioned.
Whereas the personal firm doesn’t publicize monetary info, the couple expects 2020 revenues to be 35% greater than 2019, with the majority of that development coming from these digital advertising providers. Employment can even see a 30% bump.
“We have the bandwidth right here so as to add one other 4 folks by the top of the 12 months,” Jon Hedges mentioned. “We’re onboarding two new workers this month.”
He sees no purpose why development won’t proceed. E-commerce spending within the automotive aftermarket was rising by 14% to 16% yearly even earlier than the pandemic surge.
“As well as, the financial system is hurting proper now, however the automotive aftermarket is traditionally recession-resistant,” Jon Hedges mentioned. “That, mixed with the continued shift to e-commerce, has made us very optimistic for the following a number of years.”
