Many body and mechanical shops have selections to where they can buy their parts. Back in the past most dealers parts department fought to earn your business and supply you with the best service and best price attainable. Today – not so much. The repugn ultimately played out that it’s pure volume to be profitable. Most of the littler auto dealers just got out of the game and let the big boys have it. The dealer does not offer a 90 day same as cash program so forget about that option.
The expenses related to selling OEM parts have zoomed and is way out of control. You must have enough personnel to deal with the telephone calls, looking up the parts, and shipping. You would like to teach the younger folks entering the automotive work force but you’ve got to have folks that know the parts business in and out. Car wrap Melbourne The true executives can name off a part number and not think twice about it. Many body and mechanical shops get irritated when they should talk with somebody new just because they’re extremely busy and don’t have time wait for something that should be looked up wrong and specially shipped wrong.
A lot of dealers have their own delivery vans but many are learning to outsource. The rising cost of drivers, the delivery wagons, and mostly the price of gas will eat a reasonable profit margin like a snake in a rat farm. A slow day doesn’t imply less to ship – it’s actually the opposite. The vans need to stay full to make the run worthwhile. Many dealers try to overlap routes simply to send out a full truck. The difficulty there is delivery time will change and that makes the shops insane. Outsourcing the shipping is a set cost per box in most cases and can work out if you can get a lot of parts in one box. The issue with this system is when a mechanical and body shop purchases a 2 buck gasket and the dealer parts department bled money on that deal.
Returns is the absolutely worst word in the wholesale parts vocabulary. After you get finished with all of the huge costs above and then have the parts back is deflating. Mistakes will be made on the dealer and the shops side and they do happen. The mendosa line is nine %. If a dealer can keep his returns under 10 p.c then is happy to move on and take the hit. If a shop has a higher p.c. then the parts boss will take a look at the shops numbers and confirm they are profitable or they are cut off from ordering any more parts.
The truthfully the automotive locations should take it easy on the dealers they like to do business with in the present day’s economy. The dealer know you’ve a customer or car down that has to be sorted but if you keep having automotive dealers dropping out of the wholesale game then you have to bank on your local dealer. Their is a large number of dealers who don’t care if you order parts from them and nearly look at it that you are taking the dealers client.
Wymetto Barnard is the director of marketing of JLS Marketing, Inc helping small and medium business’s decrease cost, increase profit and especially increase foot traffic to their location. You may contact JLS Marketing for tools and information for automotive dealers and shops. We specialize in wholesale parts.