Study: Online Tech Drives Pricing, Pay Plans

    Nov. 26, 2019
    A recent study of franchised auto dealerships indicated that online technology can be a critical, driving factor in making the collision repair parts marketplace more competitive and collision departments more profitable.

    Nov. 26, 2019—A recent study of franchised auto dealerships indicates that online technology can be a critical, driving factor in making the collision repair parts marketplace more competitive and collision departments more profitable.

    The survey, conducted by Florida-based JDJS Consulting, polled 337 franchised auto dealerships to establish how they utilized online platforms for collision repair parts.

    According to the study, over 85 percent of dealers working with online platforms for pricing and procuring collision parts report they vary pricing to match local conditions, expand their geographical market and be more competitive. Dealers who utilize flexible pricing also report a win rate of 55 percent on their quotes.

    Study results also show that about 9 of 10 dealers are compensating parts department managers based on various performance-driven formulas.

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