BYOP boom meets mixed reviews

Jan. 1, 2020
In addition to DIY and DIFM, are we now seeing a third category — BYOP (bring your own parts)?

Last month, I asked if we were witnessing the birth of a new category of auto parts consumers. Specifically in addition to DIY and DIFM, are we now seeing a third category — BYOP (bring your own parts)?

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The Internet has enabled the average consumer to price shop parts like never before. Data indicates that upwards of 80 percent of consumers use the Internet when making all types of purchase decisions. That number could climb substantially as Generation Y replaces the Boomers. Feedback from service techs is that an increasing number of their customers are becoming aware about what parts cost. That is causing more consumers to question the price they are being charged in conjunction with their service repairs.

As I have referenced in earlier installments in this series, online shoppers are increasingly encountering deeply discounted parts, where online sellers are “disintermediating” the margin of the jobber and WD. Contrast that with the installer who may be paying more for the same part. Applying their normal mark-up creates a substantial price disparity between what consumers see online and what they see on the installer’s estimate. If this consumer “price auditing” continues to trend upward, it’s likely that we’ll see more car owners bringing in parts with their cars.

Historically, most installers have refused to use customer-supplied parts. I recall seeing a sign in a repair shop when I was much younger. On the top half it showed a man carrying a couple of eggs into a diner. On the bottom half it showed a man carrying a muffler into a repair garage. Between the two illustrations was this caption:  You can’t do this here, which is why you can’t do this here. So this must have been a somewhat frequent occurrence for years before the web went public. Today, with so many people having access to the Internet, technicians are telling me it’s a growing phenomenon.

One installer told me that customers who bring in their own parts are a “gift.”  He contended that since he had a “no warranty” policy on customer-supplied parts and because he charged a premium for his labor in such circumstances, he was good with it. Another argued that service dealers who install customer-provided parts are taking an increased risk, since in many jurisdictions they are not absolved from warranty responsibilities. 

I spoke with the Scott Drozd, the CEO of FCP Euro (www.fcpeuro.com), an on-line parts seller who told me, “That's what a lot of our customers do — purchase parts online and bring them to a shop for installation.” I asked if those customers ever encountered resistance from installers. “On the contrary,” he said.  “Since we specialize in parts for European vehicles, many times techs are so impressed with our products, they end up buying from us. We are even looking into doing a referral program for installers.”

And while that might make sense with specialty parts like what Scott sells, it’s not clear what impact the practice might have on the traditional aftermarket supply chain (WD – jobber – installer). The impact could be far reaching. Some manufacturers tell me that the big retailers are hyper concerned about the sizable disparity they are seeing between online prices and what they sell for in the stores. As I sit writing this, I just learned that AutoZone purchased autoanything.com. AutoZone, a savvy retailer with an established web presence, doesn’t make an acquisition like that if they aren’t sure about the future of auto parts sold on the web. 

I’m reminded of the Buffalo Springfield lyric, “Something’s happening here, what it is ain’t exactly clear.” That’s how I feel about this phenomenon. The Internet is impacting our business. Car owners are checking parts pricing online. Where it goes from here falls into that “ain’t exactly clear” category.

If we blindly cling to the idea that “cars have to be fixed today, not when the UPS man comes tomorrow” we are the ones who might get blindsided.

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