Digital Dealer - August 2017 - 48

F I X E D O P E R AT I O N S

Continued from pg. 46

ADVERTISERS INDEX
360 Booth....................................	 pg. 27
Broadway Equipment Company...	pg. 11
DealerTrack.................................. Front Cover Wrap
Easycare......................................	 pg. 29
ELead1One..................................	pg. 3
ePush!..........................................	 pg. 33
Flick Fusion Video Marketing........pg. 35, 37, 39
Max Digital....................................	pg. 31
Mighty Auto Parts..........................pg. 47
OEC..............................................	pg. 1
Rosenfield and Company.............	pg. 15
vAuto............................................	 Back Cover
Warranty Solutions.....................	 Inside Back Cover
xTime............................................	Inside Front Cover
The index to advertiser page numbers is published for reader convenience.
Every effort is made to list page numbers correctly. The listing is not part
of the advertising contract and the publisher is not responsible for errors or
omissions.

market, and it includes all
types of makes and related applications. Getting
parts and even accessories for these, where a
margin of 55% or better
is available, is just plain
smart. The margin key
is not what a part is sold
for, but rather for what
price an item is purchased
allowing for an excellent
margin, and this requires
some study and related
negotiations, worth every
minute of effort.
I visit dealers and
ask the parts managers
what pricing tier they are
purchasing from with their
Aftermarket supplier(s)
- they don't know. Every
counter person buys from
their buddies at different
locations so volume rebates are out the window.
They don't get the labor
paid at the door rate for on
a defective part replacement, don't get a national
warranty, never mention
available training, or setting up their own pricing
schedule on the Internet.
No tracking for potential
stocking is done within a
DMS source, and available free repair / mainte48

AUGUST 2017

nance software resources
for service are unknown.
Guaranteed 30-minute
delivery - really?
EVER WONDER
WHERE PARTS GO
WHEN YOUR RETURN
THEM TO YOUR
MANUFACTURER (NO,
NOT PARTS HEAVEN
OUT BACK)?

Try WORLDPAC - from
their website: WORLDPAC imports original
equipment and automotive replacement parts
directly from the most respected manufacturers in
the industry. Our complete
product offering includes
over 120,000 products
for over 40 import and
domestic vehicle carlines.
WORLDPAC imports
parts directly from the
most respected original
equipment suppliers and
manufacturers in the
automotive industry. With
over 7 million total vehicle
applications, WORLDPAC's supplier community
represents one of the
most comprehensive
product inventories in
North America.
In my region, WORLDPAC has a warehouse

D I G I TA L D E A L E R . C O M

with twice daily delivery
many miles out as well as
overnight service when a
piece is not in stock. NOS
(new old stock) factory
OE parts for half price and
less, not too shabby, and
much more such as a nationwide warranty. This is
just one example of where
my independent shop
friends shop to ensure a
55%++ parts margin.
CUSTOMER LOVE

The ironic part (no pun
here) is that the reason
independent shops are
cheaper is their reduced
parts pricing, since the
labor rates and flat rate
books are essentially the
same as the franchised
dealer. Although I have
witnessed (far too often)
dealer techs ripping customers off by demanding
highly inflated times from
non-technical writers and
managers ill-equipped to
challenge any semi-competent tech. When it occurs once, it doesn't stop,
and soon the practice
spreads throughout the
shop. When I calculate
200% output from a prima
donna blowhard tech, it's
unequivocally apparent
what the hell is going on!
And as a former master
tech, shop owner, and
now a genuine geezer
tech, I tend to be very
pro-tech; but integrity
precludes everything else
for me regarding service
customers. I often point
out that they are the individuals paying everyone,
not the usually cash-poor
owner, who would run out
of current cash quickly
otherwise.
About six or so years
ago I offered a worksheet

that I have recently updated, which lists 12 important
areas a parts pro should
negotiate with an Aftermarket supplier. My favorite
approach for my clients is
to get about three competitors together, give them
an idea of the volume we
will purchase, and go over
what we are looking for on
the worksheet - then let
them go home and document what they can and will
do for the dealership. There
is a certain dimension of
fun in this I must say, but
the results pitting competitors against each other
yields some very beneficial
results for my clients.
TAKE THIS

If you want the negotiation worksheet just
send me an email to Ed@
NetProfitGroup.com and
put on the subject line:
"Parts Worksheet-Make Me
A Buck Bro" and I will send
it directly. This formulation
is much easier and more
effective than slapping your
suppliers around - guess
how I know. Ah, I love this
business.
ED KOVALCHICK has
traveled the world training
and consulting in fixed
operations with manufacturers
and dealers. His extensive
background includes master
technician status, independent
shop owner, dealer with all
Chrysler & Nissan franchises,
and founder of Net Profit Inc.,
fixed operations consulting
and training. He is a graduate
of the University of Louisiana,
and has served as state
president of the Automotive
Service Councils, and the
advisory boards of Wyo Tech
and Virginia College. He has
been a regular columnist and
conference presenter with
Dealer magazine and Digital
Dealer since 1995. EMAIL:
Ed@NetProfitGroup.com.
http://www.DIGITALDEALER.COM
Table of Contents for the Digital Edition of Digital Dealer - August 2017
