Established in 1985, Federated Auto Parts Distributors is reportedly the fastest growing industry distribution network in the nation with more than 3,800 outlets. CEO Rusty Bishop is a former chairman of the Automotive Warehouse Distributors Association (AWDA). In November of 2009 Bishop was presented with the organization’s Pursuit of Excellence award.
How has the economy changed consumers’ purchasing behavior?
While there likely have been many areas of change, the increased focus on maintenance probably has the biggest impact on our business. With fewer new car sales, the average consumer is looking to keep their car longer and is paying more attention to proper maintenance. This is a very positive trend; a long-term change in consumer behavior that significantly benefits the aftermarket.
How are program groups and parts stores responding to DIYer growth?
At Federated, we work to support our members’ efforts targeting both DIY and professional service provider customers. This support includes national advertising, marketing materials, store layout, selection, packaging and much more. While most Federated stores have seen some increase in DIY business due to the state of the economy, we have not directed any new efforts in this area. We do not see DIY growth as something that will continue over the long term. Our goal is to have consistent programs that offer our members support in all areas, creating long-term strategic value.
What types of work are parts stores encouraging? Are they encouraging more complicated tasks vs. light DIY work?
While Federated members encourage a wide spectrum of vehicle maintenance and repair, most of our members are focused on providing their customers with quality parts and service. Together we provide information, specifications and product features that allow customers to make good decisions. This often includes providing experienced insight and helping customers understand the tools and expertise needed to perform certain repairs or maintenance procedures. Federated personnel are well trained and can offer great assistance to customers who are faced with challenging repair issues.
DIY work means shops are losing business; how are they responding?
While increased DIY activity certainly impacts professional shops, it appears it has had minimal impact on their incremental overall growth. Many service providers have seen their businesses grow with the closing of car dealers, consumers keeping cars longer and the increased attention to maintenance. The service business will continue to evolve and diagnostics become a bigger part of a shop’s business. Federated has training programs and profitability seminars designed to help service providers adapt to the evolving marketplace and increase their opportunity for growth.
Is there an upsurge in shops offering consumers special maintenance programs?
As consumers plan to keep their vehicles longer, the emphasis on maintenance has increased substantially and many shops have developed programs or service specials to support this demand. We have seen significant growth in the Federated Car Care Center program, which provides marketing support to shops for maintenance programs. Federated members have also seen outstanding sales growth of maintenance items and expect continued growth going forward.
Can consumers buy their parts elsewhere and bring them to shops to have the parts installed?
While some shops will install parts that consumers bring to them, liability and other concerns make this practice less frequent. Shops that do allow consumers to bring their own parts report that often the parts are wrong or the vehicle was misdiagnosed. Many times, the consumer’s total cost would have been lower if they had allowed the shop to properly diagnose the vehicle and procure the correct parts for the job from the start.
