New car dealerships currently control roughly 9% of the mechanical parts market. Seem a little modest? The relentless march of the automotive technology evolution may just provide a solution.
As cars grow more advanced — think advanced driver-assistance systems (ADAS) and beyond — their parts are becoming increasingly more sophisticated. That also makes them more and more difficult to replace properly in the aftermarket.
Savvy Parts Departments have the chance to capitalize on a massive opportunity to increase their mechanical parts sales. Consumers need a reliable way to maintain their vehicles over the long term, and that means a vendor they can trust to supply the complex replacements for the high-tech parts that keep them safe on the road. What better place to look than the dealerships themselves?
With OEM parts, dealerships outclass aftermarket retailers in terms of quality, warranty, fitment, and performance. While aftermarket vendors tend to beat dealerships on price and availability, dealerships have the power to compete in those areas, too — and have plenty of incentive to do so. Finding the right pricing matrix to make cost+ work for parts from different price tiers can help you increase Parts Department revenue, move volume, and maintain your profit margins.
READ MORE: How To Protect Fixed Ops Revenue
In an evolving, digital-first marketplace, there’s an urgency to modernize dealership Parts Department sales to stay on top of the aftermarket. Think about a few statistics:
51% of Americans prefer to shop online
Parts Department customers make 36% of online orders outside of normal business hours
$162 billion in auto parts sales in the US is expected to be digitally-influenced
Traditional brick-and-mortar parts sales can only take your business so far. If you want to increase your Parts Department sales and claim your market share from the aftermarket, getting into online parts space is the way to go.
The experts at RevolutionParts can set you up with an online shop that drives profitable revenue and grows your customer base. Take your business into the future with staying power.
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Dealer Spotlight
Michael Renaud, Vice President of Leader in Cars Auto Group, grows Mazda NY part sales with eCommerce.
