Sideways

Jan. 1, 2020
Special orders have their place in the specialty-parts business. There are two types of parts buyers, but sometimes they can be one in the same. Immediate-need customers are those who need their vehicle repaired right now to get to work tomo

Special Orders: Immediate need versus high-performance customers.

Special orders have their place in the specialty-parts business. There are two types of parts buyers, but sometimes they can be one in the same. Immediate-need customers are those who need their vehicle repaired right now to get to work tomorrow. Immediate-need buyers tend to be non-car enthusiasts or car enthusiasts who need parts for their non-enthusiast car. The customer may own a hot rod, but his 2003 Honda daily driver needs a water pump and, in this case, doesn't want to hear about "special orders." The customer (and installer) wants the local parts seller to deliver the correct part in one hour or less and the car repaired and running properly by 5 p.m.

The immediate-need customer doesn't care about the water pump's brand or even if it's new or remanufactured (most water pumps today are new). These customers just want to know their vehicle will get them to work tomorrow.

Flash forward to the enthusiast car. The same customer now needs a polished, high-performance water pump for a 1969 Camaro he is building. In this case, there is no immediate need. The special-order customer is more concerned with getting a certain brand water pump with the right efficiency than getting the part right now. The fact it will take a day or two to "special order" the water pump is not a concern. Neither is the fact the part must be paid for in advance before the special order is submitted.

Special orders are very handy—especially when you are dealing with specialty cars. Older high-performance vehicles don't use common A and B mover parts. These vehicle owners realize their requests are unusual and they appreciate the fact you are willing to track down and special order the part they need.

In some cases, consumers know exactly what they want, right down to the part number. In other cases, they will ask your advice. "I am thinking about installing this type and brand of water pump. What do you think?"

Let customers know if the part's brand can be easily obtained and whether it actually fits and works well (based on past experience). If you anticipate trouble getting or installing the part, let them know that, too. After all, they did ask.

Special orders used to work only if you lived in a relatively large metropolitan area. Now, this is no longer the case. Even if you live in a hard-to-reach rural area, with UPS, FedEx, and even the U.S. Postal Service, you can usually get the part you need in 24 to 48 hours. If you live near a major high-performance warehouse, the shop may even get same-day delivery.

Why do special orders work? The part is sold and paid for before it's even ordered. Businesses like that. The slow-selling part doesn't have to be kept in inventory. Businesses also like that.

From the customer side, they get the part they want in a timely manner. From the independent service provider's (installer) point of view, the labor to install a high-performance water pump on an older car is probably less intensive than installing a stock water pump on a newer car with a smaller engine and engine compartment.

Special orders can be very good for business. Think of special orders as invisible inventory paid for and turned before it's even ordered. Special orders do not require inventory space or dollars. In most cases, special orders do not involve core handling and core charges.

However, being successful with special orders does take special knowledge. You have to know where to get that special, polished, high-performance water pump for a small-block Chevy engine. You must either trust your local warehouse or have special knowledge about high-performance equipment. It helps if you have both. You can't know everything, but the brand name of the high-performance water pump should at least ring a bell.

In this issue, Nguyet Le Thomas takes a look at special orders and provides an overview of the situation. As for me, I am a fan of special orders. For my older cars and my specialty cars, I appreciate the fact parts are still available and that someone in the business knows how to find them.

However, there are times when I am an immediate-need part buyer. For example, when my wife's current daily driver needs a new water pump or fuel pump, I expect it to be in stock and available today. I want her back on the road tomorrow and not driving one of my specialty cars any longer than necessary.

I understand the need for special orders for old-car parts, unusual vehicles, and vehicles with a limited number on the road, but for A and B movers, parts should be available instantly and, for the most part, they are. If you need a water pump for a Honda Civic or a Ford Taurus, the part should be in stock and delivered to the shop or installer pronto.

BRAND NAMES

What about brand-name parts? How important is it for the installer to offer brand-name parts to the immediate-need customer? In the case of a replacement part, the shop will usually try to match OE quality or better. Sometimes the part will come from the same supplier.

For the replacement water pump, the customer will usually be offered a couple of choices pertaining to quality: high-quality brand name (perhaps the same brand as the original part), middle-grade, and "take-your-chances-cheap." Most shops base their estimate on the vehicle's age and condition. If the customer has a very clean, well-maintained vehicle, it's assumed the customer wants only the best. If, on the other hand, the vehicle is a beater, it's assumed the customer wants the lowest-cost (white box) replacement part. It's up to the installer to find out which level of replacement part the customer wants.

A customer with an expensive vehicle—domestic or import—or even an older vehicle—if it's a premium brand and in good shape—will usually order the best quality part available. In most cases, the customer will look to the shop/installer for a recommendation.

In the case of the high-performance part, the brand name may be even more important. The customer might say, "I want the same part they use on those drag-race engines." If the customer specifies a brand name, it will only increase the total bill's amount. This indicates the customer is more concerned with quality than price. To be successful with non-immediate-need special-order customers, the shop/installer must be familiar with the category, market, and sub-set of vehicle.

Let's say your customer is building a hot rod 1969 Camaro with a small-block Chevy engine. The category is engine performance, the market is early Camaro, and the sub-set is water pumps. You need to be familiar with all three to make the sale. Many customers will start out planning to install the water pump themselves. However, if you demonstrate that you know the topic well and have experience with polished, high-performance water pumps and "fail-open" thermostats that will protect the customer's expensive investment (that high-performance Chevy small-block engine), you might end up with the installation job as well.

Mike Anson Editor in Chief [email protected]

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