Auto service franchises experienced stable or increased sales and gross margins in 2012 and are optimistic about 2013 sales and margins, according to the Aftermarket Business World Auto Service Franchise Study.
Forty-eight percent of respondents said they experienced a sales increase in 2012 and 44 percent said their sales stayed the same as the previous year. Fifty-three percent said they expect sales to increase in 2013 while 42 percent said they expect sales to stay the same.
That optimism is reflected in 2013 gross margins as 51 percent expect to increase their margins in 2013 while 45 percent anticipate that their gross margins will stay the same as in 2012.
Quality and availability tied as the top needs of their customers, as 27 percent of respondents cited each trait. Price was a close second at 24 percent. OEM fit and function came in third at 18 percent.
When it comes to marketing, 77 percent said that their own recommendation was their most effective marketing tool. Ten percent said it was in-store displays while only 3 percent cited social media.
When it’s time to order parts 48 percent order electronically while 40 percent use the phone. Auto service franchise respondents said their preferred suppliers were auto parts retailers (36 percent), warehouse distributors (27 percent), jobbers (23 percent) and OEM parts providers (11 percent).
Click on Auto Service Franchise Study to see the entire study.
METHODOLOGY: The Aftermarket Business World Auto Service Franchise study was fielded to readers of Motor Age magazine via email. Survey results are intended to show general market trends, not statistical certainties.
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