NATDA Magazine Nov/Dec Nov2018Mag_FINAL - Page 10

If you’re like most dealers we work with, most of the parts your parts department sells are currently going on equipment that is in your own shop. While there’s nothing wrong with that as a short-term strategy, it shouldn’t be your only goal. We encourage dealers to market their parts business to attract trailer owners performing their own repairs. The value of these customers can impact your dealers with not only increased parts sales, but you also become the place they look to for a new trailer when they are ready to purchase. Let’s look at some simple, zero-cost things you can do to grow that business. Make Sure Your Endcaps are Producing Revenue Your end caps are the most valuable real estate in your parts department, and it is imperative that you are measuring the revenue that they produce on a weekly basis. We require endcaps to produce a dealership $1,000 of gross profit per square foot per year. How do you measure that? If you are running dealership software, you make your endcap a parts location and then run a sales report each month of the dollars sold from that location. If your endcap is not generating you the dollars per square foot, simply change what is on the endcap! Keep Your Parts Counter Clear of Clutter Your parts counter is a billboard for your parts department. So many dealerships that we work with have all sorts of things sitting on their counter, distracting from the message we are trying to communicate at the parts counter. We want every customer to walk up to the parts counter and say, “they have everything we need, and they have great prices!” To make your parts counter a billboard for that, you need to have signs that compare your price for a few fast-moving parts that you carry to a local big box store. 10 Have A Clear Price on Everything Have you ever walked into a store and found something that didn’t have a price tag on it? What did you do? If you are like most people, you probably put it down and walked away. One of the biggest barriers that your customers have from buying is lack of communication, and that comes down to something as simple as price tags. One thing some of our dealers are utilizing are electronic price tags, giving them the ability to make sure that prices are clear for every item in their showroom and parts department without having the hassle of tagging every piece of inventory. Don’t Overlook Fronting and Facing Your Products The process of fronting and facing your parts can go a long way in helping sell more parts. Fronting your inventory is simply making sure that all of your product is pulled to the front of the shelf, giving the shelf a full look. To face your inventory, you simply need to make sure that the label is faced forward on the display. Fronting and facing are two simple things that that parts department can do daily that will have a large impact on your customers. A clear strategy in your parts department will not only help you sell more parts but will help customers have a better experience with your dealership. For more tips like these, please visit NATDA Dealership Performance Training program includes online modules and documented processes, so dealers can improve every aspect of their dealership – from the parts department to trailer sales. For more information and to sign-up, please contact NATDA at 727-360-0304. NATDA Magazine