There is another twist to the game

Transitioning your business to the new reality

Many thought it was great when Amazon arrived on the scene. As compared to going to the bookstore looking for a book and having to ask the staff to order a book for you, there was simplicity and ease in having the book show up in a few days. It was nice when Amazon grew and began to have many other items available that previously you were challenged to find with local businesses.

But when parts became a part of the offering, someone had crossed the line that shouldn’t be crossed. So, what has happened? In today’s market, 74% of all online shoppers start with a search engine such as Google or Bing. In the auto parts side, 73% are starting with the online parts retailer.

Four years ago, 40% of shoppers started at Amazon. Two years later that number had increased to 60%. What does Amazon have to do with the Google or Bing search? Amazon is not becoming a part of the market; they are becoming the market. While we may be concerned with an online search, it is an online business, Amazon, that is the latest and biggest concern for anyone who has traditionally made a sale of a part and service to their customer.

Is this going to change? Doubtful. Just as a traditional jobber had to face online sales, it has moved to the installer. Yes, there are ways we need to look at this and adapt.

The first and most important is considering how we sell our expertise. We know that 49% of all parts shoppers, pros and DIYs at some time have bought the wrong part online and/or in person. This should speak to our using our expertise as our number one selling point. Even when we, or the parts house, make the mistake of having the wrong part, we can more quickly and easily resolve the issue for our customer.

What seems to be the bigger concern for installers and speed shops is the customer that wants to buy the product, bring it to the shop, and have the installation done locally. Can we turn away that business?
Of course, you can. Because it is your shop and you get to make the decisions. However, the changes we have seen with the statistics shared about indicate there is a change in the trade and we likely cannot turn the change around.

That being observed, this is not the first industry to experience such a situation. There are many restaurants, where local and state laws allow, where an individual can bring in their own wine to be served with the meal. The restaurant welcomes the customer bringing in the wine, and while losing the sale of an item traditionally having a large margin, is able to keep the customer and make the profit they can from the balance of the meal. You will see in this restaurant they are charging a corking or serving fee based on the price of the meal or the going local price for the wine the customer has brought.

In other restaurants, customers have been bringing their own meats to be prepared. This happens more frequently where the meat is something the customer got by way of hunting. The restaurant may not have wild game on their menu, but their qualified staff is able to prepare it. Again, there is a fee charged for the preparation. Is the overall ticket for the meal less than what they would have gotten if the restaurant had served meat they sold? Yes, but they are still preserving the transaction.

The pharmaceutical trade has been slowly but surely working to make changes in how they price their services. Previously it has been that the pharmacist is making money only when he is filling a prescription (much like a mechanic making money only when he has a job on the clock). However, as the pharmacist has seen the opportunity and need to help the patient/customer by consulting with them to discuss the medications they are taking, there has been a movement to bill insurance companies for the consultative services they provide.

While some will scoff at the idea, allowing customers to bring their parts is a definite new twist in the business; it is not going away. It could be embraced by letting the customer select the part and having you order it for them. This would hopefully cut down on the situation of a customer bringing the car and part to you and after taking the time to put the car on a lift you find it is the wrong part. That would be an expensive consumption of your shop space and time. There can and should be a fee for confirming it is the correct part, as well as a fee similar to the ones we have just described from other industries.

There could also be a fee charge when the customer brings the wrong part considering the extra time you are going to spend along with the space that unrepaired vehicle is going to take up.

There would be a challenge in having multiple labor prices depending on how the part was purchased. If not the first, it will be one of the earliest customers who will remark that the installer is getting them one way or another. Perhaps it can be handled with whatever name you want to give to the fee much like the pharmacist or restaurant has done.

It could be offered that work is first done for customers who are buying the parts from you as a way of thanking the customer for their “complete business”. Airlines do this every day with the multitude of price ranges, amenities and services they offer.

There is also the opportunity of when you have the vehicle in your shop and it is discovered there are additional parts needed, you could sell the customer on the idea of your getting the additional part quicker than they can look it up, get it ordered and then deliver it to your shop.

And yes, there should be a fee for any vehicle that is spending multiple unnecessary days on your property because of an action or inaction by the customer.

When you decide to make the change, we would suggest you do so boldly and loudly. Definitely not with a, “we don’t normally do this” whimper of acceptance of a customer. Make the announcement a part of how you advertise your business. By being the first to embrace the change, you could find yourself attracting a whole new bunch of customers.

Be the bruised and battered early adopter of the idea as compared to the fast follower of the pack.

If you would like to send this article to someone you know, please use this form to forward this page:

Your Name:	E-Mail:
Friend's Name:	E-Mail:
	Security Code: