Are You Being Robbed?

Jim Boyer
Are you being robbed? Collision parts is a $15 billion market. With better margins than selling an entire car, it’s an enticing opportunity for aggressive dealers. But dealers don’t need to have a part in-stock to receive a request for quote (RFQ) from a collision repair shop. And that’s what this post is about. What’s your experience? Does this workflow make sense to you? 1. Collision repair shop gets an estimate, and according to the insurance company’s rules engine this repair is approved for OEM parts. So far so good. 2. The next step is to collect price quotes and delivery commitments. The shop uses the phone or one of several software options to send RFQs to dealers. Dealer A has the part in stock. Dealer B does not. 3. Both dealers receive the RFQ and respond. Dealer A has inventory carrying costs, and must cut margins to compete with Dealer B, who has no carrying costs. 4. Sometimes Dealer A gets the sale because with the part in-stock they can deliver more quickly. 5. Sometimes Dealer B gets the sale because with lower costs they can win on price. What's Your Opinion? • Is Dealer A being robbed of ROI? • Is Dealer B being robbed of incentive to invest and compete more aggressively? What does this imply: o For the OE manufacturer? o For the collision shop? o For the consumer? Are you being robbed?
Jim Boyer
Chris, Thanks for your thoughts! How rare is it that Parts Managers would knock on doors and go get business? Kudos for your guys. So do you have a lot of inventory? As for the software, something like what you described is about to be launched in pilot phase. The shop's RFQ workflow is being replaced with filling a shopping cart and clicking to buy. It is such a complicated thing it took four sister companies – each contributing a piece of the puzzle – to pull it off.
Denim Simkins
Jim - good question. Chris mentioned my thought and In my experience this portion of the business comes due to the relationship build, so those who have someone building that one by one will be able to keep the sale even if the part needed has to be ordered. With body shop parts I would not want excessive inventory around, damage, misplaced and so on. So utilizing a relationship based approach and a solid ordering process would be my suggestion.
mark rask
We have a person that travels a couple of times to local body shops and reminds them that we can help them
Jim Boyer
Thanks, Mark, for your insight!
mark rask
we also carry swag from the dealership for the guys (caps, visors, key chains etc )

Featured Masters

No members found

CRM - Fixed Ops Products

0%  Recommended Recom'd 0 Ratings
Company: ELEAD1ONE
0%  Recommended Recom'd 0 Ratings
Company: DealerSocket
0%  Recommended Recom'd 0 Ratings
Company: ELEAD1ONE
0%  Recommended Recom'd 0 Ratings
Company: DMEautomotive

 Rate a Vendor Give feedback in three quick steps

Select a Vendor & Product
Can’t find what you're looking for?
Add a Vendor  or  Add a Product
  •  
  •  
  •