Whether you distribute F&I services or sell dealerships parts/products such as paint, oil, ancillary, it is crystal clear that margins are being compressed and the number of players in the automotive space is shrinking.
Do you still think that only selling OEM parts is best for your dealership?
Look at the number of preowned units in operation on the road today. So many owners are convinced by staff members that OEM is the only solution. The other side, which is doing a booming business, enjoys offering customers quality non-OEM, high-quality alternatives not to mention options in the parts department when selling wholesale to independents.
Ask Your Service Manager – Not the Parts Manager
Many providers today offer same or better quality parts with better warranties and pricing. Why not give your customers a choice when it comes to the repair or maintenance of their vehicle. Still not convinced? Ask your service manager about the parts that service contract companies ask them to use on such repairs. Remember, you don’t earn a parts mark up on those items only the labor. What about your wholesale business. Your parts manager will tell you that they are the last call for independents and retailers and it is all due to price. Why not capture the sale by providing an alternative? Many times this is simply a relationship with a few outside partners that allows you the flexibility and a very good margin not to mention the service labor dollars.
Still worried about quality?
Gone are the days of many automotive manufacturers. Those that remain typically source the OEM on hard parts (alternators/starters/radiators) and even exceed OEM quality.
For more information and some great ways to start the process just give us a call.