Building the dynamic duo

Jan. 1, 2020
Out-of-control returns are the aftermarket's 'invisible elephant.'

Distributors and shop owners who work together can pack a one-two punch of effectiveness.

Moving forward into the New Year, distributors and service shops who work together as a parts-and-service dynamic duo will likely be better positioned to pack a powerful aftermarket punch.

And you don't even have to be a dashing Caped Crusader to accomplish these goals. In fact, dating back to his 1939 debut, the feisty Batman character of comic book, television and film fame has never possessed superhuman powers, relying instead on intelligent thinking, detective skills and technology to win his battles — aided greatly, of course, by his trusted partner Robin.

Such partnerships between parts purveyors and repair providers can benefit both parties in today's tough fight for higher car counts and consistent first-call component sales.

Program groups, warehouse distributors, jobbers and parts stores serving commercial accounts have steadily stepped up their offerings geared toward improving a repair shop's performance.

Initiatives and incentives designed to enhance branding and marketing, technical know-how and business management skills are among the elements involved; plus, there's been a push to reduce parts returns and customer comebacks by ensuring accuracy in the parts-delivery process.

Electronic-commerce ordering systems, complete with photographs portraying the merchandise, are increasingly jumping into the parts-purchasing fray, creating a paradox of sorts as the industry's heightened e-commerce capability highlights the necessity of maintaining personal contact among parts sellers and parts buyers.

"The most important people out there are still the guys in the trucks," says Uni-Select USA e-commerce Manager Tomm Johnson, referring to distributor account managers who continue to call on the shops. "You can't do all your business over the telephone or over the computer. You need that personal touch of someone going into the place and shaking hands."

An effective account manager should serve as "the stopper" for a shop owner, eagerly providing solutions aimed at furthering the repair center's success, according to Johnson, who was a long-time executive at the Minnesota-based Red Rooster chain purchased by Uni-Select in June.

"They're the cement that binds" together WDs, jobbers and shop owners, Johnson observes. When this type of teamwork is effectively accomplished, it brings confidence and loyalty to each party in the transaction, including the vehicle owner who comes away satisfied with the repair.

"All things being equal, people would rather buy from somebody they know and feel comfortable with," says Bob Barstow, director of marketing for the Automotive Distribution Network (ADN).

"That assumes that all things are equal," he notes, "and we know that all things aren't. The choices a jobber makes in regards to which WD he buys from are based on his priorities — brand name vs. private label, cost vs. quality, programs vs. independent, added value vs. parts for a price, and the list goes on. The same can be said for installers buying from which jobber — what are their priorities?"

Delivery saves the day

Preciseness in parts delivery and solid technician training programs are among the chief attributes valued by Larry Moore, president of the high-end Larry's Auto Works in Mountain View, Calif.

Moore expects top-notch service from his suppliers. "We don't double-order (a specific part from more than one source) — none of these games of who-gets-here-first. We get most of our cars out in a day, so accuracy with the parts is critical. We don't shop based on price because we're going to mark up the part anyway."

Surrounded by an array of some 30 parts suppliers, if a jobber or WD is lax in service, "We look very closely at whether we want to do business with them."

Larry's Auto Works has obtained a 95-percent parts-accuracy rate thanks to electronic ordering capability. Moore says he is particularly pleased with the performance of WORLDPAC's image-based ordering system and the thoroughness exhibited by CARQUEST's counter staff.

"We really appreciate that the parts houses bring in excellent training and not just sales pitches," explains Moore.

Moore says they try to work with suppliers who have done what it takes to competently partner with the shop to meet both Moore's expectations and those of his sophisticated Silicon Valley clientele.

"In 1962 when I started (in the aftermarket), the salesperson was an 'order-taker,'" recalls Johnson, citing the transformation toward a more holistic approach being applied by the industry's more savvy distributors. "Now you have to know how the (customer's) business is doing."

The "salesman" has thus evolved into an "account manager," becoming a consultant who takes an active interest in gleaning the operational details necessary to grow car counts and enhance financial efficiencies through enhanced inventory control strategies.

This can be a challenging assignment, says Johnson, as many shop owners need convincing and a sense of sincerity and trust before they'll feel comfortable divulging the intricacies behind their businesses.

"The pride in these guys is huge," he explains. "There are a ton of things they don't want to admit to" if they feel they are being judged or criticized over management miscues. It is an especially sensitive — and widespread — issue among shop owners who began their careers as technicians and later moved up to the management ranks.

Pushing 'the stopper'

Good things can happen when this dynamic duo concept is put into action.

"You've got to know how to run the business and you have to keep the technicians on top of what's happening" in regard to ever-changing repair procedures and the higher standards of customer service demanded by today's consumers, Johnson says.

The focus between WD and technician is now P2P rather than B2B, Johnson continues, citing a philosophical shift from a "business to business" mind-set to one of "people to people" relationships.

You need people who are able to acknowledge birthdays, anniversaries and other significant milestones among a shop's personnel, he emphasizes. "That's the personal contact: You can send out all the fliers you want, but if you go out there to see them, you have a better chance of selling" your programs.

The ability of an account manager to deliver on the aforementioned "stopper" role for a shop owner is largely dependent on the support provided by the distributor's ownership. The account manager needs enough clout from upper management to successfully engage in problem solving.

At Uni-Select, they're all for this technique. "When we go out the door, we have a common idea" about how to serve the tech customer, Johnson notes. "You have to be consistent. The customer knows what to expect of you."

The shop owner is more likely to call you first when he or she knows what is available through your company, and in turn the dynamic duo is able to address the assorted operational intricacies such as employee training and inventory management based on the shop's customer base and the types of repairs being made.

"You need to help them with the lines they stock and what they should stock" given their particular situation. "If you get two people together, you come up with the best inventory," Johnson asserts.

It's a similar situation when this partnership discusses a shop's training needs. "If my account manager knows these people, he knows the way to get them to school." For example, technicians in particularly competitive markets will get eaten alive if they aren't up to speed with the latest automobiles.

Plagued by parts

It can be a real jungle when trying to address the plethora of parts being sent back by shops, according to Mike Emley, chairman of the Automotive Distribution Network's Parts Plus Jobber Advisory Council.

Out-of-control returns are the aftermarket's "invisible elephant," he says, citing the weight being brought to bear on an operation's bottom line by a situation that should be obvious to all.

"It's turned into a costly problem," says Emley, co-owner of four All Parts Auto Stores in California's San José region. "I guarantee you there are a lot of people in this business suffering the same problem."

For years Emley has been advocating that more effort be directed toward:

  • Mistakes made by the parts store counterperson;
  • Honest mistakes in ordering;
  • Misdiagnosed problems;
  • Not getting all the data necessary to obtain the right part the first time;
  • Ordering parts for a customer who never shows up or cancels their appointment; and
  • "Parts racing" by ordering from multiple suppliers, and, "He who gets there first gets the sale."

Thus far, only "marginal improvement" has been delivered regarding these factors, he believes.

Adding to Emley's ire is a 10-percent return fee implemented by one of his main suppliers.

All Parts' repair shop clients are currently posting an average 25-percent part return rate, with each incidence costing the company at least $5.25.

"That's a lot of time, that's a lot of money and that's a lot of wasted effort," he contends, noting how one of his shop customers was sending parts back at a budget-busting 65-percent clip.

Typically, when technicians are unsure about a particular part's fit for the job at hand, "their answer is to 'send them both to me,'" Emley notes, stressing how a team-oriented approach to the ordering process can tame this unproductive habit.

"You have to get them to care that it costs you money and then you have to get them to understand the process and take the extra step" to help ensure the accuracy of the transaction, advises Emley.

As it stands now, parts sellers end up serving as a "bank" for the item's source pending the refund, as the rejected product languishes in unsold limbo while the vendor's computer system orders another one.

"That's a trap we're sucked into on a regular basis," says Johnson at Uni-Select.

A key component for both seller and buyer is to facilitate completeness from the get-go, Emley notes. You can ask your shop partners to "please take the time to be thorough" by exploring the full array of required parts, telling them how "that means you can get that customer's vehicle out that day and not have to carry it overnight."

Things flow much more smoothly when techs order online and answer the same questions their suppliers must answer regarding specifics of the vehicle and repair project, he adds.

Six of Emley's customers have embraced this extra step, leading to return rates of 10 percent or less.

"If we can get more of that out into the repair industry, the reduction in the return rate will be phenomenal," he urges, adding how the recent evolution of ordering systems based on vehicle identification numbers, called VIN decoding, is particularly promising. (Currently, returns are averaging 25 percent to 30 percent nationwide.)

"If we can get the VIN decoded, the process will be dramatically more efficient," he says. "It makes sure you order everything for the job" based on a computerized analysis of the very vehicle on the rack.

Completing the links

Looking up a job's required parts based on a VIN is proving to be especially conducive for improving communication and cooperation among vendors and repairers, reports Gary August, ADN's information technology director.

"It's been a great boon to us," says August as he describes the group's Network Connect™ system and how it cuts down on errors and saves technicians the hassle of returning to look at the car in the bay. "It works over the Internet and you have instant access to your data. This frees up our counterpeople to do more selling."

Mark and Ranae Salem's busy 20-bay Salem Boys Auto in Tempe, Ariz., has won numerous awards for its design, environmental strategy, beauty and functionality — including an active interest in pursuing e-commerce connections with suppliers.

"We order via the net, we print the ticket via the net, we drive our electric car to their warehouse, we pull the receipt, we source the part, we sign the invoice, we drive home," Mark Salem explains. "We are, in the truest sense of the word, a trouble-free account that tries not to use any resources used by the majority. Then, our parts vendor can pass the savings on to us for not using his staff, his drivers, his trucks and his counter folks to help run my business."

Increased acceptance of this technology is in the cards through ongoing refinements to the Automotive Aftermarket Industry Association's Catalog Enhanced Standard (ACES) and the Product Information Exchange Standard (PIES).

"There's a lot of e-commerce going on between the shop level and their distributors," says Scott Luckett, AAIA's vice president for technology standards and solutions. "The shop gets access to good information; they can get the right part the first time and returns go down."

According to Luckett, techs and shop owners are thinking, "I might as well get all the parts for the job rather than just what the counterman remembered to suggest."

Likewise, distributors are seeing increased sales per counterperson when routine parts are ordered online because they are able to concentrate on hard-to-find items and other specialized customer service challenges. "Your 20-year counterman doesn't have to stand there and look up an oil filter for a Chevy Cavalier."

Look for the dynamics behind the dynamic duo concept to be further developed by AAIA's drive toward growing its Car Care Professionals Network.

"It was a realization that we were a vertically integrated organization" that helped fuel the push, says Larry Northup, AAIA's senior director for member relations. "The overall goal is to help non-dealer repair shops become better, more competitive businesses. (In years past) we've not had any formal interaction with the repairers — this completes the links in the chain."

About the Author

James Guyette

James E. Guyette is a long-time contributing editor to Aftermarket Business World, ABRN and Motor Age magazines.

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