Dealers continue to secure parts sales from aftermarket channels

With the never-ending growth of product SKUs stocking up on shelves today, it’s increasingly difficult for jobbers and distributors to meet the demands of their customers, forcing some shop owners to work with numerous suppliers — including dealerships, at what some might consider alarming rates.

Research from the National Automobile Dealers Association states that new car dealers carried a parts inventory valued at $5.6 billion in 2004, with the average dealer stocking over $250,000 in parts. And total parts sales were $48.18 billion.

“I see an increase in the number of parts I get from the dealers,” says Lloyd Burlingame, owner of LB Automotive in Wisconsin. “The part may not be available through the jobber or there is something proprietary about it.” He also points out that if he’s questioning a component, he will buy OE over aftermarket.

In the past, about 80 percent of the product used at Auto Air and More in Phoenix, Ariz., was aftermarket, whereas now, it’s only about 60 to 65 percent, according to one of the owners, Ron Rockie. “Dealers are more reasonable now than in the past” he says, adding that he has a better relationship with them than he used to, though “their service isn’t as good as it could be.” But Rockie isn’t always ordering from dealers because he wants to; often times it’s because he feels he has to.

What’s in the box?

But these shop executives also tell us of another reason they buy from dealers, and service has nil to do with it. Rockie says that all too often, jobbers assume that he knows what’s in the box and why something is priced a certain way, when in fact he doesn’t always understand why something looks different than what came off the car, or if it performs better.

Several other shop owners we spoke to also suggested that some of their parts suppliers aren’t very good at communicating the benefits of the products they are selling, which in turn forces them to call the dealer for OE parts instead, regardless of the service they get.

“Usually it’s the dealers that offer poor service,” says Allen Phillips, owner of Del Mar Automotive in San Diego, who orders certain parts from two Lexus dealers in his area because the parts aren’t available elsewhere. “Sometimes you call and get an answering machine.”

Edward Bebb, owner of Joyce Automotive in Lakeland, Fla., says he gets better service from dealerships in adjoining towns than the ones in his own backyard, but it’s not necessarily better than the service being offered by jobbers. The jobber competition in his area is so cutthroat, it’s “almost a detriment to the industry,” he says.

More service from jobbers desired

Technicians and shop owners aren’t always privy to all the challenges a jobber faces, says Rockie, who would like to know what’s going on behind closed doors so he has a better understanding of how their business works. 

Burlingame would like to see more assistance from his suppliers when there is an issue, like with warranties. “It’s key how they handle issues.”    

Additional shop owners told us it seems as if all the jobber wants to do is take their order and get off the phone. Rockie says, “I find that with some of the guys answering the phone at the parts store, if you don’t have the proper information and rattle it off right away, the treatment seems to dissolve as far as getting the assistance you need.” He suggests they take the extra step to offer or suggest other parts that might be needed for a particular job.

Phillips says WorldPac is one of their best suppliers. “They have seven deliveries a day. Their Internet system is really good and they have a rep I can call with product questions.”

And when it comes to pricing, the debate over its role continues to rock the industry, though Will Sparks, owner of Terry’s Car Care in Madison, Wis., says, “the most important thing [for a jobber to offer] is timely delivery, followed by quality parts and then competitive pricing. Price is not No. 1.”

He adds that time is money in this business, and if a jobber is fast and cheap but provides poor quality parts, he’ll shop elsewhere. “If someone answers the phone promptly and wants my business, I won’t beat him up over a buck or two,” says Bebb.

All shop owners we spoke to were attendants at a Mitchell 1 training seminar in San Diego, Calif.