[et_pb_section fb_built=”1″ _builder_version=”4.26.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_row _builder_version=”4.26.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.26.0″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n
Achieving 100% fixed absorption is a must<\/span><\/a> for the long-term success of your dealership\u2014especially in the midst of plummeting vehicle profitability and growing uncertainty around the future of service. However, this goal continues to be a significant challenge for many dealerships, as the average absorption rate for U.S. dealerships sits around 60%. The solution is hiding in plain sight: your parts department.\u00a0<\/span><\/p>\n Parts departments in particular can create serious financial strain when managed inefficiently, leading to lost opportunities, increased costs, and decreased profitability. While sales departments have typically been viewed as the star of the dealership, the <\/span>strongest armor protecting your dealership\u2019s success<\/span><\/a> is in the fixed ops department. But only if you have the tools and processes in place to reach your full revenue potential. <\/span><\/p>\n Let\u2019s explore the hidden costs associated with dealership parts inefficiencies. Plus, we\u2019ll share how modernizing your processes can <\/span>boost your dealership\u2019s profitability and customer satisfaction<\/span><\/a>.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Operational inefficiencies have a snowball effect on dealership profitability. Here are some of the most common inefficiencies that dealerships face:<\/span><\/p>\n [\/et_pb_text][et_pb_blurb title=”Poor Inventory Management = Lost Sales Opportunities” image=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/1.png” icon_placement=”left” image_icon_width=”70px” content_max_width=”800px” _builder_version=”4.27.3″ _module_preset=”default” header_level=”h5″ header_font=”–et_global_heading_font||||||||” header_font_size=”22px” animation=”off” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Effectively managing parts inventory is no walk in the park. A lack of real-time inventory management will lead to significant issues. Dealerships may overstock slow-moving parts while running out of high-demand ones. This leads to delayed service jobs, lost sales, and worse of all\u2014losing customers to your competition.\u00a0<\/span><\/p>\n [\/et_pb_blurb][et_pb_blurb title=”Outdated Ordering Processes = High Obsolescence Costs” image=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/2.png” icon_placement=”left” image_icon_width=”70px” content_max_width=”800px” _builder_version=”4.27.3″ _module_preset=”default” header_level=”h5″ header_font=”–et_global_heading_font||||||||” header_font_size=”22px” animation=”off” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Manual or outdated ordering processes result in slow fulfillment times and errors in part identification. These inefficient inventory practices lead to high levels of obsolete stock. This leads to unhappy customers and creates a devastating burden on your dealership\u2019s budget. When you\u2019re dealing with the razor thin margins of the modern dealership, missteps like this really hurt.\u00a0<\/span><\/p>\n [\/et_pb_blurb][et_pb_blurb title=”Lack of eCommerce = Failure to Meet Customers Where They Are” image=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/3-.png” icon_placement=”left” image_icon_width=”70px” content_max_width=”800px” _builder_version=”4.27.3″ _module_preset=”default” header_level=”h5″ header_font=”–et_global_heading_font||||||||” header_font_size=”22px” animation=”off” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n Many parts departments still operate with traditional sales methods, limiting their customer base to walk-ins, phone orders, and service lanes. There\u2019s no way around it\u2014customers prefer to buy parts online, expecting an easy shopping experience that dealerships without eCommerce simply can\u2019t deliver. If you don\u2019t embrace eCommerce now, it will continue to result in more and more lost customers, eventually resulting in your dealership getting left behind.\u00a0<\/span><\/p>\n In fact, according to our <\/span>2023 eCommerce Shopper Behavior Report<\/span><\/a>, a total of 143.2 million unique users visited web stores powered by RevolutionParts in just one year, from March 2022 to March 2023. If you aren\u2019t currently selling parts online, that\u2019s a lot of customers to be missing out on\u2026<\/span><\/p>\n [\/et_pb_blurb][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/VitolRoll.jpg” title_text=”VitolRoll” _builder_version=”4.27.3″ _module_preset=”default” width=”71%” max_width=”71%” border_radii=”on|4px|4px|4px|4px” border_width_all=”2px” border_color_all=”#db3126″ global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n A well-managed parts department is key to the success of <\/span>fixed operations<\/span><\/a>. As Tully Williams famously said:\u00a0 <\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” header_5_text_color=”#000000″ width=”90%” max_width=”90%” custom_padding=”|||20px|false|false” border_color_all=”#db3126″ border_width_left=”4px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”48px” _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n This quote highlights the symbiotic relationship between the parts and service departments. When parts are efficiently handled, service operations run smoothly, leading to increased revenue through additional labor hours.<\/span><\/p>\n Here\u2019s how an efficient parts department can enhance service operations:<\/span><\/p>\n Boosted dealership profitability: <\/b>By optimizing parts management, dealerships can sell more labor hours, contributing to higher fixed absorption rates.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/ModernAutomotive.jpg” title_text=”ModernAutomotive” _builder_version=”4.27.3″ _module_preset=”default” width=”71%” max_width=”71%” border_radii=”on|4px|4px|4px|4px” border_width_all=”2px” border_color_all=”#db3126″ global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n If you\u2019re like 95% of U.S. dealerships, you know there\u2019s no room for error, which highlights the need to maximize the revenue impact of every department in your store. One area with a typically underutilized power source is your parts department. To <\/span>tap into your parts department\u2019s revenue potential<\/span><\/a>, adding an eCommerce channel is a must. Here\u2019s why:<\/span><\/p>\n An eCommerce platform allows your dealership to reach customers far beyond your local market. Can any of your other departments do that on a daily basis? By selling parts online, you can tap into a national (and even global) customer base, increasing sales opportunities and supersizing your dealership\u2019s footprint.<\/span><\/p>\n With an eCommerce platform specifically designed for dealerships, you can access the best, most accurate and up-to-date brand catalogs available. This translates to real-time inventory management which means you can sell any part at any time. When you sell parts this way, you get paid before you actually have to purchase the part. That means no financial risk and no threat of the part becoming obsolete. It also improves accuracy in tracking sales trends by providing data insights.<\/span><\/p>\n There\u2019s a huge DIY market out there that values genuine parts. And those customers expect fast, easy, and transparent online shopping experiences. eCommerce enables customers to browse available parts, check prices, and place orders from anywhere, at any time. It also simplifies order tracking and communication, improving customer satisfaction.<\/span><\/p>\n As online sales of automotive parts and accessories are expected to <\/span>grow by nearly 50%<\/span><\/a> between 2024 and 2030, embracing eCommerce has never been more of a must-do.<\/span><\/p>\n [\/et_pb_text][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/SuccessStories.jpg” title_text=”SuccessStories” _builder_version=”4.27.3″ _module_preset=”default” width=”71%” max_width=”71%” border_radii=”on|4px|4px|4px|4px” border_width_all=”2px” border_color_all=”#db3126″ global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_blurb title=”BMW of West Chester” image=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/bmw-of-west-chester-case-study2.jpg” icon_placement=”left” image_icon_width=”129%” content_max_width=”780px” icon_placement_tablet=”left” icon_placement_phone=”top” icon_placement_last_edited=”on|phone” image_icon_width_tablet=”129%” image_icon_width_phone=”139%” image_icon_width_last_edited=”on|phone” _builder_version=”4.27.3″ _module_preset=”default” image_icon_custom_margin=”11px||||false|false” custom_css_blurb_image=”Max-width:200px!important;||width:200px!important;||” global_colors_info=”{}” custom_css_blurb_image_last_edited=”on|phone” custom_css_blurb_image_phone=”width:300px!Important;||” custom_css_blurb_image_tablet=”Max-width:200px!important;||width:200px!important;||” theme_builder_area=”post_content”]<\/p>\n BMW of West Chester saw huge success<\/span><\/a> after integrating eCommerce into their parts department. They were able to clear out obsolete inventory and increase their parts sales, all while providing a better experience for their customers.\u00a0<\/span><\/p>\n The dealership now reports nearly $200K in online parts sales <\/span>every month<\/span><\/i>. Their story is a perfect example of how eCommerce can transform a parts department from a cost center into a profit generator. <\/span><\/p>\n [\/et_pb_blurb][et_pb_blurb title=”Olympia Nissan” image=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/OlympiaNissan-Image.jpg” icon_placement=”left” image_icon_width=”129%” content_max_width=”780px” icon_placement_tablet=”left” icon_placement_phone=”top” icon_placement_last_edited=”on|phone” image_icon_width_tablet=”129%” image_icon_width_phone=”139%” image_icon_width_last_edited=”on|phone” _builder_version=”4.27.3″ _module_preset=”default” image_icon_custom_margin=”11px||||false|false” custom_margin=”50px|||||” custom_css_blurb_image=”Max-width:200px!important;||width:200px!important;||” global_colors_info=”{}” custom_css_blurb_image_last_edited=”on|phone” custom_css_blurb_image_phone=”width:300px!Important;||” custom_css_blurb_image_tablet=”Max-width:200px!important;||width:200px!important;||” theme_builder_area=”post_content”]<\/p>\n Olympia Nissan’s<\/span><\/a>\u00a0parts department, once considered a quiet corner of the dealership, has transformed into a significant revenue generator by shifting to an eCommerce-focused strategy using RevolutionParts. This transition helped boost their absorption rate and grow their monthly online orders to 465, generating $67,275.39 in revenue with an average order value of $144.68. Over time, Olympia Nissan\u2019s online efforts have yielded an impressive $7.3 million in revenue and $1.2 million in gross profit.<\/span><\/p>\n The key to this success was the dealership\u2019s decision to move away from platforms like eBay and Amazon, opting instead to focus on building their own customized web store through RevolutionParts. The flexibility and ease of use of the platform allowed the dealership to streamline its parts operations and tap into broader markets. <\/span><\/p>\n [\/et_pb_blurb][et_pb_blurb title=”Modern INFINITI of Winston-Salem” image=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/OlympiaNissan-Image.jpg” icon_placement=”left” image_icon_width=”129%” content_max_width=”780px” icon_placement_tablet=”left” icon_placement_phone=”top” icon_placement_last_edited=”on|phone” image_icon_width_tablet=”129%” image_icon_width_phone=”139%” image_icon_width_last_edited=”on|phone” _builder_version=”4.27.3″ _module_preset=”default” image_icon_custom_margin=”11px||||false|false” custom_margin=”50px|||||” hover_enabled=”0″ custom_css_blurb_image=”Max-width:200px!important;||width:200px!important;||” global_colors_info=”{}” custom_css_blurb_image_last_edited=”on|phone” custom_css_blurb_image_phone=”width:300px!Important;||” custom_css_blurb_image_tablet=”Max-width:200px!important;||width:200px!important;||” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n Modern INFINITI\u2019s transition to online parts sales through RevolutionParts has been a seamless and highly successful experience. Selling online helped the dealership clear aging and obsolete parts quickly, while leveraging manufacturer-backed promotions boosted traffic and visibility. Flexible shipping options further increased profitability, allowing them to choose cost-effective methods that align with their goals.<\/span><\/p>\n In just 30 days, <\/span>Modern INFINITI<\/span><\/a>\u2019s online store achieved impressive results: 260 orders, over $111K in sales, and a gross profit of $6,367. Even with competitive online pricing, they outpaced their wholesale department\u2019s performance. By opening the store to everyday consumers, not just repair shops, Modern INFINITI expanded their customer base, increased traffic, and improved customer satisfaction.<\/span><\/p>\n [\/et_pb_blurb][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″]<\/p>\n [\/et_pb_text][et_pb_image src=”https:\/\/www.revolutionparts.com\/wp-content\/uploads\/DigitalTools.jpg” title_text=”DigitalTools” _builder_version=”4.27.3″ _module_preset=”default” width=”71%” max_width=”71%” border_radii=”on|4px|4px|4px|4px” border_width_all=”2px” border_color_all=”#db3126″ global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_image][et_pb_text _builder_version=”4.27.3″ _module_preset=”default” header_2_font_size=”36px” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” ul_item_indent=”43px” sticky_enabled=”0″]<\/p>\n To improve efficiency and profitability, dealerships should look to digital tools and data-driven decision making. Real-time data allows parts managers to track key performance metrics, make informed decisions, and continuously optimize operations. Here are some key metrics your parts department should be tracking:<\/span><\/p>\nFinding Inefficiencies in the Parts Department<\/span><\/h2>\n
The Vital Role of the Parts Department in Fixed Operations<\/span><\/h2>\n
\u201cWithout great parts people, without great parts inventory there is no service department. HOURS are sold because of parts, parts sell HOURS.\u201d\u00a0<\/span><\/h5>\n
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Embracing Modern Automotive eCommerce Solutions<\/span><\/h2>\n
Reach a Larger Market<\/span><\/h5>\n
Streamline Inventory Management<\/span><\/h5>\n
Enhance your Customer Experience<\/span><\/h5>\n
Success Stories That Speak Volumes<\/span><\/h2>\n
Leveraging Data and Digital Tools for Better Decision-Making<\/span><\/h2>\n
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<\/span><\/h5>\n
Digital Tools for Parts Department Optimization<\/span><\/h5>\n