FACT: Wholesale parts sold through a new car dealer is typically 85% Collision & 15% Mechanical.

FACT: The on-hand inventory at a typical dealership is 85% Mechanical & 15% Collision.

Wholesale Parts is one of many sales channels that Parts Managers have total and complete control over. However, many are focused on the ultra-competitive collision segment where margins on highly competitive parts are non-existent. The orders are high dollar, the returns are excessive, and the accounts need to be serviced to ensure continued purchase retention.

Mechanical Parts are usually 90-95% captive, which means they are not available elsewhere. They come with a top shelf warranty and are readily available. Three things are needed to capture this higher gross profit segment and help increase inventory turnover (turn rate) of your 100% cash inventory investment. You don’t have to be the cheapest, but you must be competitive.

1. Relationships

Having a high level of knowledge about your customers needs & expectations is crucial. Also, a vested interest in helping them become more efficient & profitable will make you much more relatable. The more cars they fix, they more parts they will buy (from you!).

2. Service Levels

Time is money. The longer the car sits on the lift, the more productivity and profits the shop loses. With mechanical parts, a 1 hour “Hot Shot” delivery is needed. Limit this to your top 2-3 mechanical ISP shops within a 5-7-mile radius.

3. Online Shopping Tools 

ISP shops need timely and accurate price and availability information complete with part numbers to prepare in-house repair estimates. Phone calls to the dealer are extremely time consuming and inaccurate. Many times, customers call the dealership but never reach the parts counter.

Online shopping tools like a 24/7 online parts catalog are a necessity. The best part is that your “Virtual Parts Counter” is uncompensated and is open 24 hours a day. It offers the customer the accurate information they need and will drastically cut down on the amount of non-revenue generating inbound telephone calls. RevolutionParts is here to make your job easier!