It’s not getting any easier to be a player in the ultra-competitive wholesale parts arena, but parts managers know that it is the biggest arena that they have total control over. Parts managers are selling parts, not labor, so the vehicle does not have to be at the dealership to sell a part.
It’s a great sales channel but requires a strategy, resources, and dedicated specialists performing dedicated tasks. It’s a vital revenue stream that is crucial to dealership expense absorption.
1. Win Back Lost Business
This requires a download or report from your DMS system to measure a 12-month period to compare previous sales volume to current sales volume. Once you have identified your biggest losses, you need to understand which parts segments are responsible for the decline. Many times, it takes a simple readjustment of pricing and an understanding of changing consumer shopping trends.
2. Improve Sales to Existing Accounts
Pain points become the basis for a customized needs fulfillment offer. This means visiting the customer and determining their needs and expectations. It also allows you to visually assess your potential here and introduce 24/7 online shopping tools that repair shops need to prepare repair estimates.
3. Conquer New Accounts
This does not mean undercutting anyone. What it does mean is that you have to make the effort to make outbound cold calls and survey potential new shops! Introduce yourself. After all, your only mission is to help the shop sell the next repair job. Many times, repair shops are not happy with the level of service they receive from their current suppliers and will always welcome a comparison. If it means better service, they will gladly switch over to you. It is not a “race to the bottom.” It’s about providing value, and the shops know that they get what they pay for.
4. Partner With Brokers and Resellers
This may seem counterintuitive, but think about it. These partners can help resell your parts in your local market where we do not have or will never have the resources to service all the shops in our local market. Think of these resellers as outsourced salespeople. You both split the margins and everyone wins. Your parts are distributed and installed within your local market. The resellers handle servicing their customers, taking payment, and delivering the parts. It’s a win-win-win!
Effectively Grow Your Wholesale Business
Ready to grow and maintain your wholesale business? Be sure to use our “The Roadmap to Winning More Local Parts Sales” to help streamline your parts department and turn it into a wholesale revenue generator.
This guide will help your parts department find and pursue new wholesale prospects, add more revenue channels to the parts department, and increase inventory turn.