Hi Sara,
We want to increase our parts sales, but I’m not sure what we’re missing. Do you have any tips on how to drive more parts sales?
Thanks, Laura from Urban Equipment & Power
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Hi Laura,
Great question! It’s awesome you’re looking to rev up those parts sales. Here’s a little trick that’s like finding loose change under the couch cushions—except it’s way better for your bottom line: your service department. They’re probably your biggest parts customer, and they tend to keep you on your toes. Try tacking on an extra 5% for all the parts you sell to them. It’s a small adjustment that can lead to a nice boost in revenue. Given how often they ask you to order parts “just in case” (which they should!), it makes sense. But when they don’t need those parts, guess who takes the hit on returns? Yep—the parts department. So that extra 5% helps cover those moments, too!
And here’s the best part: we’ve never had a customer complain about a slight bump in pricing. When their unit is in the shop, all they care about is how soon they can get it back, so that little extra charge goes practically unnoticed. It’s a win-win!
Now, let’s talk margins. This is where velocity pricing and matrix pricing come into play—strategies we swear by. It’s like what retailers such as Walmart do: you raise the margin on low-dollar parts and lower it as the price goes up. It’s all about finding that sweet spot. So when customers need a low-dollar part, you’re getting a higher margin. When they buy a bigger-ticket item, you give them a break on the margin. And yes, our Dealer Toolbox has a calculator to make it easy, like having a pricing GPS right there in your toolbox.
If you need a hand navigating any of this (or just want a good laugh while you do), you know where to find me. I’m always here, calculator in hand, ready to help you turn those parts into profits!
Best of luck,
Sara
P.S. Your parts department will probably thank you for this one. They’ll be wondering why they didn’t think of it first!
