Diversify Or Die

Jan. 1, 2020

6 min read

Styling & Performance Offers Something for Everyone

Are your profits declining due to shrinking margins from manufacturers, or due to competition? Or are your profits declining from a general "drying up" of your customer base? If so, then you need to ask yourself two questions: Are you willing to take a few steps to add new revenue streams? Are you prepared to step outside your "comfort zone" to look for more sources of revenue from your business?

If your answer to either of these questions is "yes," then latch your seat belts and read Styling & Performance because we have some profitable solutions for you. When you participate in the growing specialty parts markets you will find there are challenges involved in sourcing the parts, selecting reputable manufacturers and training your people about the parts and how to sell them successfully.

Our goal at Styling & Performance is to help you overcome these obstacles and put your business on the path to new revenue streams, greater customer satisfaction and higher profitability.

A NEW OPPORTUNITY: THE OE AFTERMARKET

Currently, the aftermarket accessory business is under-serviced because of its limited network of sources and installation facilities. With more than 23,000 new-car and new-truck dealerships nationwide, there is a natural opportunity to turn them into customers for your specialty parts. In some cases, they might also become customers for the installation of those parts.

HIGH PERFORMANCE AFTERMARKET

In the recent study, three in five auto parts manufacturers reported selling specialty parts and 22 percent of those reported that sales in 2006 increased. Twenty-three percent of Jobbers responding to the survey also said sales of specialty parts and accessories increased last year.

THE TRADITIONAL AFTERMARKET

There are approximately 29,000 jobber stores in existence today, and many have watched walk-in business dry up and blow away. This issue contains valuable data on the size of the market, outlines unique opportunities and provides research data compiled from our sister publications (Motor Age, Aftermarket Business, Auto Body Repair News [ABRN] and Hot Auto Products [HAP]).

No matter into which category you fall, the world of styling and performance offers an exciting, profitable and relatively easy way to develop new business–and not just from local sources. If you are willing to invest in a Website, you can bring in customers from outside your region and make your business global in reach.

Does this mean you have to spend a lot to add inventory to service your new customers? No. There is a nationwide network of distributors of these parts that deliver just-in-time, and they are as eager to have access to your clients as you are to sell those clients additional products and services. It's a win-win situation for everybody.

Although there are literally thousands of choices of styling and performance parts, the good news is that most consumers stick to a handful of categories of simple bolt-on parts, and in most cases the installation is easily within the capabilities of most service technicians and skilled do-it-yourselfers. If you're a shop doing tuneups or undercar work, your technicians can easily install these parts. If you are a wholesale/retail outlet many of your retail customers can handle the installation themselves. And even if you're an automotive dealership selling new cars and trucks the reality is that your service techs probably do this type of work on their own vehicles. It's the 80/20 rule: 80 percent of sales will come from 20 percent of the parts.

Consider this: Independent research has shown that 98 percdent of consumers that seek specialty car parts usually pick from this short list of possible modifications:

1. Intake

2. Exhaust

3. Tires

4. Wheels

5. Window tint

6. Car audio upgrades

7. Computer chip/hand-held programmers

In the truck segment, the above categories apply, along with:

1. Tonneau covers

2. Leather seating surface upgrades

3. Running boards

4. Push bars

5. Auxiliary lighting

6. Car audio upgrades

You do not have to buy deep inventory levels to get into this business. A nationwide network of distribution already exists and many of these suppliers deliver just-in-time. All you need to do is familiarize yourself with the parts available (a task made easier by our Search-Autoparts.com portal).

In most cases, these products have no negative effect on a manufacturer's warranty and for those parts that might have warranty implications, a third party warranty service program called "Pro Pledge" is taking shape now (more on that in an upcoming issue) and will remove this potential objection at the point of sale.

THE INTERNET FACTOR

In a co-branding agreement with DCi, we have developed www.search-autoparts.com, a comprehensive search engine that lists more than 30 million parts complete with detailed descriptions of the features and benefits of each part. These can easily be shown to your customers to help close the sale.

The Website also links your store, shop or dealership to a myriad of sources, both local and regional, to acquire the parts, and we'll work closely with you to help fine-tune your source network and assist you in selecting the most desirable brands. Styling & Performance is designed to help put you in the specialty parts business and coach you along the way.

In just a short time, you and your staff can learn how to use the Website effectively to assist a customer shopping for the best name- brand parts in the business. The site is very intuitive and easy to navigate.

PROJECT PARTS CHASER SWEEPSTAKES

For further motivation, we've tied a sweepstakes entry into every use of the site. Each time you or one of your team members surfs the Website for product information, you'll be entered to win a brand-new, fully modified show truck that is being billed as the "Ultimate Parts Chaser."

Our pledge to you is simple: Styling & Performance and our supporting portal, www.search-autoparts.com, will be your source for the parts, and for the training and support you will need to add revenue streams to your business.

In coming issues, we'll be educating all levels of distribution on how to sell these parts. Scheduled features include:

How the sale of specialty parts will help build your image and build profitability into other areas of your business.
What parts and brands you should take on.
How to set up your location to entice customers to buy these parts.
How to train your people to sell these parts.
How to expand your business using a Website with regional, national and international reach.

In today's climate of shrinking margins and increasing competition, diversification into the automotive specialty parts aftermarket can aid your survival...and your profitability.