Despite collision shops’ apparent low-maintenance relationship with their suppliers, they have a high level of trust and confidence when it comes to product pricing and brands.
More than half of the collision shops surveyed in the Aftermarket Business World Collision Shop Study reported that no regular contact is necessary from suppliers in order to keep a relationship and inventory orders steady. And a translucent pricing method is also not needed, as nearly 80 percent of respondents do not know how much over the jobber they are paying for inventory.
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A good relationship and fast delivery where the most important considerations when determining preferred suppliers — with the most common being auto parts retailers and jobbers, results show.
When determining which products to purchase, price and quality were the most influential reasons behind brand selection. However respondents have more loyalty to their suppliers than their product brands, and 71 percent say if their supplier changed brands, they would also change brands, rather than find a new supplier.
The internet has yet to build a strong presence as an inventory buying tool among collision shops surveyed, as 96 percent report ordering 0 to 10 percent of their inventory online.
The shops also keep returns at bay, with 87 percent reporting no returns monthly. Most respondents — 89 percent — are also not looking to expand on the services they currently provide.
DRPs are helping to generate business for shops, with roughly 40 percent reporting they provide anywhere between 21 and 75 percent of the shop’s business, respondents say. But despite a steady stream of business, 83 percent of respondents report insurance companies have no influence on the collision repair work being performed.
METHODOLOGY: The Collision Shop Study was fielded via email to readers of ABRN, a sister publication of Aftermarket Business World. The findings are intended to show general market trends, not statistical certainties.