One of the most common misconceptions dealers have is what type of person actually represents their target market or customer. Often, a dealer thinks their typical customer is someone just like themselves; but that is rarely the case. Just to be crystal clear, in most cases you (or someone just like you) are not your target market. To better determine who you should be marketing to, take a step back and ask yourself these questions [...]
Each department in your dealership requires a different marketing plan. While some of your customers may cross over from department to department, the fact remains that each department offers a completely unique product. While all of the marketing in your dealership needs to be cohesive, we also have to understand what we are trying to market by department. What should you market? When we think about what we are marketing in our parts department, we have to [...]
The Parts Department is one of the most profitable departments for a dealership. Depending on the product mix the dealership sells, most parts departments that we work with make a 35% – 52% margin on their parts. The other reason that parts remains profitable and easily scalable is the fact that just one parts person can handle anywhere between $350,000 – $600,000 of parts on their own (again, depending on the mix). We see that [...]
One of the most important jobs of a department manager is working to keep their team motivated. In the parts department it is even more important than in service and sales because of the amount of customer contact that happens daily. One unmotivated parts person can impact both your parts sales and your customers’ experience with your dealership. One of the simplest and most overlooked methods of motivating any employee is using goals and objectives. [...]
As customers’ attitudes continue to change about their need to interact with a person rather than a machine, we’re faced with great opportunities to make some innovations to the parts departments in dealerships. I am guessing that most of you have looked up and ordered an item online or perhaps have gone through a self-checkout line in a store. Where several years ago, customers would have fought doing either, today most people do either one [...]
The parts department is one of the most complex parts of any dealership. It serves as the first impression for many customers and has challenges that no other department will face. At times, it may even seem like an impossible task to make everyone happy. Keeping your parts department running smoothly boils down to three key processes. The Process of Having the Right Inventory on Hand A critical measurement of a parts department is to [...]
When it comes to parts, most people don’t think about them until they need them. Therefore it is critical to be at the front of your customers' minds when that need arises. One of the easiest ways to do that is to set up parts displays in your showroom near your equipment displays. While the customer is looking at new equipment, they are not thinking about parts at that moment. However, a display conveniently located [...]
Not just anyone can be picked off up the street and be placed at the parts counter. There is a mix of customer service, technical knowledge, sales ability, and attention to detail required to be an excellent parts person. So, when you are in need of the mystical parts person, how and where do you find them? With season upon us, there never seems like there are enough to go around. We often talk about [...]
Today, it makes no sense for a dealership to maintain a large parts inventory, or stock ten of the same item, because manufacturers have greatly improved their ability to get you the parts you need when you need them. Twenty years ago, it took almost 30 days to get a part, and now you can get a part delivered to you in one to four days. Think how that changes your approach to deciding on [...]
Online shopping has topped the charts in the last couple years, producing trillions of dollars in sales worldwide, with an average of 7% of ALL sales being made online*. In our industry, the convenience of allowing customers to shop from home, but guarantee the parts through a reputable business name makes this side of sales a huge win for some dealers. So, what are the top 3 things to keep in mind when exploring the [...]
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