Do you have customers returning more parts than your allowed to return to the OEM, based on their purchases? For example, you have some who buy $100,000 (at cost) of parts, yet they’ve returned $15,000 – $20,000 (at cost). Some of these parts you’ll stock – yes, but only having 5% to return to the …
We mentioned in prior posts; your biggest parts return offenders are wholesale customers, and in particular body shops. You need to get the offenders inline. Regarding return rates, pricing, and even resources to facilitate them, you need to do an analysis by wholesale customer, and start making proactive decisions to correct the issue. If …
In any relationship, including business, both parties must win. When one party doesn’t, it’s a bad relationship and needs to be redefined, or you need to part ways. In the wholesale parts business, the same is applicable. Don’t let the idea that you have to continue to do business with everyone, even if you’re losing. …
Your biggest parts return offender(s), are body shops. There are some great body shops, but every dealership has the 1 (or 5) that return excessively – not to mention pricing structures that are too aggressive. Now is the time to review these relationships, and renegotiate the terms. Don’t be afraid of losing a customer if …
As years go by, we find that some wholesale customer relationships are not what they used to be. In particular, pricing and returns. It’s ok to review your pricing structure, and return policy, annually…and let your customers know. Now that it’s year-end – this should be on the Parts Manager’s agenda. [sgmb id=”1″] Share
In Part 2, we discussed the worst thing a Parts Manager can do with inventory. Scaling back on Active and fast selling inventory is the kiss of death. They need to continue to stock parts inventory that have great probabilities of selling. The lowering of customer & shop fill rates costs more than putting capital …
When backed into a corner, and told to reduce physical inventory, the knee-jerk reaction is to reduce active, and fast selling inventory. Instead, a bigger and better plan needs to be implemented, and put to work: Implement prepaid Special Order parts. Implement a Return Policy and Return Fee. Review days supply without disrupting Fill …
Continuing from Part 1, when a Parts Manager lightens up his inventory, they are usually scaling back on active, and fast selling parts. Not just on big program orders, but also on parts they sell often and need to stock. Scaling back active inventory is the worst thing any dealer can do. It begins …
When a Parts Manager gets backed into a corner and told to reduce physical inventory, typically all other avenues to reduce inventory are already in-play. For example, returns are close to up-to-date. Although you may think otherwise, the first thing they start to scale back on is Active parts, which they sell all the …
If your Parts To Labour Ratio is off (see prior posts), there are a few areas to look where you’ll find the culprit. Tires sales are not a priority to techs and/or advisor’s. Tech’s believe that the parts dept is too busy and/or incapable. Tech’s will fix parts and/or do all they can to avoid …