Welcome to Increasing Parts Sales Information & Tips Page!
With the ever increasing competition and decreasing warranty parts and labor sales, the parts and service departments of the new car dealership must always be searching for new avenues for increasing their sales. Here are some tips and information to help you accomplish this.
- Does your new and used vehicle sales department choose to use an outside source for aftermarket accessories instead of using factory accessories because of price. Consider selling aftermarket accessories through your parts and service departments. The parts department may need to sell accessories at a reduced margin such as 20 to 25% instead of the usual 40 to 45% markup and the service department could use an entry level technician at a reduced labor rate. James Brinkley - DealerInfoLink
- Consider selling novelty items such as clothing and apparel, caps, watches, clocks and die cast models. Customers are attracted to these items which are a great traffic grabber. James Brinkley - DealerInfoLink
- Parts departments that cater to body shops, consider trying to price match aftermarket parts that are on their insurance estimates. Most body shop owners would rather use OEM body parts than aftermarket parts. Chrysler dealers have an advantage with the "Crash Conquest" program which allows their dealers to price match most aftermarket parts on fascias, headlamps and taillamps. Chrysler dealers should take advantage of this. You might not even have to price match the part dollar for dollar, just simply reducing your margin a little on the selected items. Many body shop owners would rather pay a little extra for an OEM part. Just ask for a chance to make the sale. James Brinkley - DealerInfoLink
- A good article by Ed Kovalchick from Net Profit Inc. titled "Eighteen Opportunities To Increase Parts Sales" Part 1, Part 2, Part 3
- Consider giving customers a choice between OEM parts and aftermarket parts. Find a good alliance with a local parts jobber to offer a cheaper source for parts to be more competitive with independent repair shops. Most auto parts jobbers offer free delivery as well. Some auto parts jobber will consider setting up a small supply of parts on consignment. Also offer remanufactured parts vs. new parts. Customers are generally happier when they have choices. See our business directory for Aftermarket Parts Suppliers. James Brinkley - DealerInfoLink
- Rework your display area, add on sales just like the retailers do. Get your key chains, hats, sweatshirts etc: next to the counters. You'll be surprised what an extra $1 per counter ticket will do for gross. Be sure counter people grab every part available (warranty jobs) like gaskets etc: I could go on and on, all boils down to is the department a sinker or a swimmer. What can the team do to 'help the gross'. source: smalltownpartsguy DealersEdge Parts Forum
- We are competing more and more with every independent facility for fewer available consumer dollars,and in some cases pricing ourselves out of the market chasing the elusive GP % .I don't know about anyone else, but I can't pay my bills with percentages,it takes real dollars. And if I have to sell more parts to make the same dollars I will. I am finding that working a "reverse matrix",offering the customer a choice of OEM or aftermarket parts while explaining the difference in quality and warranty coverage is helping me to maintain my departmental income,although my percentages may be a bit lower.Also,from the wholesale side,watching my receivables-if I can't get paid on time, It is an account I don't want or need.My counterpeople have been trained to "upsell", offering related parts to almost every parts request,be it to our own service tech's,wholesale accounts,or retail customers. Many times this results in a more satisfied customer,as it can save them a return trip for an item they "didn't think of".And even an extra dollar or two for that bolt,seal,or gasket adds up.It's time to "work harder, AND smarter.As vehicle sales are dying,we need to capitalize on the increased service needs that will be coming.I prefer to focus on what I can do to keep a strong fixed ops dept,not focus on the "doom and gloom" aspect.Things WILL turn around for the dealers who have a strong fixed ops and are focused on maintaining and increasing the flow of traffic in their service and parts departments."Mom never said it would be easy"...... source: ZOOM1, DealersEdge Parts Forum
- Try advertising, in the form of a personal letter from the Parts and/or service manager to your entire service base and or your community, tell them your bringing back the full in full service, any car make or model come by for a free tire pressure check and under hood, outside light,wiper check anytime the dealership service department is open, have a designated spot in your parking lot and send out Lube kid or parts counter man (God forbid) and anything they sell whether its a quart of oil or rear taillight or wiper inserts, have them installed at no charge, and track the impact of the program. It is better then having employees waiting for someone to come in and you actually provide a service the consumer needs,food for thought. source: btk, DealersEdge Parts Forum