Today the aftermarket is a different industry than it was five years ago. Let’s ask and answer some questions to bring clarity to the new reality.
The shop owner and part supplier must learn to develop a professional business win/win relationship by having discussions as to where and how the service shop is going to move forward and what the supplier needs as well. What does the shop need in technical training and where can they find that training? The supplier may be able to source out courses on behalf of the shop owner if it’s not practical to bring an instructor in. The shop owner must understand the supplier needs volume with full payment each month. The right cost may not be the cheapest part cost but the total “value” the supplier can provide the shop owner is because of the shop’s loyalty to that supplier.
The New Way to Affect Change In Your Shop
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Give us one minute of your time, and you'll learn three key ways shopping for parts online can change processes in your business. |
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How can you get part suppliers the information they need so they can process your order and deliver faster?
In reality, this is again a conversation as to what kind of parts the supplier should be stocking for the shop owner. Does the supplier truly understand their shop customers' business? It is also a technology question and the supplier and shop owner should engage in the conversation as to “how” they can embrace the right technology that serves both of them efficiently.
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How can technology help the relationship between the supplier and the repair shop?
Technology development creates improved “efficiencies” for both businesses. When both businesses are efficient, profitability improves. Again, take the time to discuss and have conversations between both the shop owner and the supplier so they both can explore solutions that help both of them.
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Under a banner or not, how can a repair shop improve its efficiency, knowledge and be more profitable on listening to the advice of part suppliers?
This is a powerful question for our industry. The first concern is: “Does the supplier truly understand the shop side of the business?” In most cases, part sales reps go into a shop and ask the question, “Are you busy?” That is totally the wrong question. A shop makes money when they are “steady,” as they are now under control in maximizing efficiencies. Site efficiencies only improve with increase billed hours. Billed hours improve with proper vehicle inspections. When billed hours improve, parts purchases are needed. Too many old -version suppliers look at “sell a part and you should get some labor.” That is so out of touch today. A successful shop is in the knowledge business and understands the importance of the correct billed hours to insure their client’s vehicle is safe, reliable and efficient.
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What will be the main challenge for both of them in the future?
I believe the challenge will be a total change in mindset for both. Due to the dramatic increase in vehicle technology, the shop business and the technician are no longer in a trade. This truly is a profession today as all within the shop are in the knowledge business. Diagnostics is growing at a very rapid pace and that requires highly skilled people to successfully execute it by understanding the vehicles' software platform. The shop owner must really understand the suppliers' business now as well and how tough it is when dealing with stocking issues and inventory management, coupled with the problem the penalty of tariffs. A business relationship must be embraced and trust between the two must be developed, but that can only happen with honest and ongoing conversations coupled with behaviour that supports the conversations. This is an incredible challenge based differing mindsets and ideals. The younger generation typically does get it. They want to develop the right relationships, but can still struggle if others in the two generations ahead of them do not share the same thought process.
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Finally, what would be your best piece of advice for a better supplier/repair shop service?
The aftermarket industry must come together and educate themselves better about each other’s business. Some may see this as unnecessary, but I believe when relationships are in a win/win situation compared to a win/lose situation, progress is made and profitability for each business improves. Imagine how many shops will close over the next 3 to 5 years because these owners did not want to learn anymore, make the necessary investments and adjust their business to the new reality to insure growth and prosperity of their business? Imagine how many suppliers will sell out because they are tired (perhaps desperate) and don’t want to adjust their business to get the top 20 shops in their marketplace with 85 percent purchase loyalty from those shops paid in full each month by understanding what value they can bring to their shop customers business. Moving forward, both businesses must develop and maintain a learning culture within their business. When that is achieved and sustained, both enterprises will have an extremely positive affect on the future aftermarket. It’s a new world ….a world that brings great opportunities to the ones who want to understand and embrace it.
Welcome to the new aftermarket.
