Not all dealerships are created equal. The team you have in place, the OEM you specialize in, the problems you get to solve for your customers – those are what make up the unique dynamic in your day to day. But whether you’re a team of two or 20, you face many of the same fixed ops challenges: balancing the right parts inventory to reach – and ideally exceed – your revenue goals.
Scalability No Matter Your Size
If you’re on that team of two in the parts department, you probably feel like you have limited time and resources to explore expanding your parts sales. You already have more than enough on your plate, servicing customers, managing wholesale accounts – many days, fitting everything into 8 or 9 hours feels impossible.
If you’re on that team of 20, perhaps you’re feeling comfortable in the sales you’re making and don’t see a reason to fix what ain’t broke. Sure, your days are full, but it’s rare you feel overwhelmed or understaffed.
In either scenario, you’re probably leaving money on the table.
A common misconception in the world of fixed ops is that manpower = scalability. It’s often seen as a direct 1:1 ratio; the more people you have, the more you can do, the more realistic it is to scale. But we’re here to set the record straight!
The reality is that you’re only as limited as the number of customers you’re willing to reach. If you don’t want to sell more parts, you can probably stop reading right now. If you want to scale your business, regardless of employee count, let’s dive in.
Customer Acquisition 1-2 Punch
The first step in growing your customer base and revenue is adding eCommerce to your parts department. Shopping online has never been more popular with consumers, and at this point, is expected of every retailer. Your parts department is indeed a retailer, so it’s time to start thinking like one. Did you know that 85% of consumers are using the internet to research auto replacement parts? (Auto Care Association)
Meeting customers where they are, with what they need, positions you to meet demand far beyond your local market. That specialty part that’s been collecting dust for the past six months might be exactly what a customer across the country has been looking for. They just needed to find you.
Christopher Forrester is the parts manager at Alden Mazda in Fairhaven, Mass., with only two people in his department, and saw online part sales contribute to $150,000 in additional revenue per month. He shared, “We’re in a tough market with lots of competition, and as a smaller store with limited space and staff, we couldn’t always keep up with the bigger guys in town. But now, thanks to our online presence, we can offer our products to a wider audience.”
Next, hiding in plain sight: the service lane. They’re the parts department’s biggest customer, but does it also feel like sometimes they’re at odds with each other? Flipping the script and training your teams to cross-sell each other will increase sales opportunities for all of fixed ops. If the service department isn’t able to close a repair sale, they can always refer the customer to the parts department to purchase the necessary parts. Sharing information on the online parts store makes it easy for the customer to get the repair done, no matter how they go about it, keeping them happy while you still make a sale. Training the parts department to promote the service lane is doubling down, giving both departments a sale. This mutually beneficial relationship is a win-win and, better yet, focuses on customer experience, ensuring they are presented with all of the options available to them when needing auto repairs.
The Result? A Modern, Well-Oiled Machine
Think about what makes your favorite car run so well. When the talented engineers designed it, and wanted it to go faster, they didn’t add five more engines. They utilized modern efficiencies, engineering for power, not bulk. They did not subscribe to the old adage, “bigger is better,” when it came to team size. And neither should you, if you want to modernize your dealership and revenue growth. Your only limitation is the one you impose on yourself. Aspiring to grow your parts business by 10X may seem lofty, but it’s actually been reality for other dealerships out there. Imagine what you can achieve if your aspiration is 20X?
Expand Your Parts Sales with eCommerce Solutions
Adding online selling channels to your parts department can help you increase revenue, improve operations, and lower obsolescence. If you want to learn more about how to modernize your parts department, download our free guide, “Creating a Digital Parts Department.”
