RevolutionParts – Sell Parts and Accessories https://www.revolutionparts.com/ Learn about leading platform that drives more OEM accessory and part sales. Mon, 23 Dec 2024 21:05:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://www.revolutionparts.com/wp-content/uploads/cropped-RP-FAV-32x32.png RevolutionParts – Sell Parts and Accessories https://www.revolutionparts.com/ 32 32 How to Prepare Your Parts Department for the Presidential Transition https://www.revolutionparts.com/ebook/how-to-prepare-your-parts-department-for-the-presidential-transition/ Fri, 20 Dec 2024 21:58:58 +0000 https://www.revolutionparts.com/?p=337375 The post How to Prepare Your Parts Department for the Presidential Transition appeared first on RevolutionParts - Sell Parts and Accessories.

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A lot is uncertain right now. But one thing’s for sure: President-elect Donald Trump is going to make an impact on the auto industry. 

This guide covers:

  • What you need to know to start 2025 strong.
  • How to prepare your dealership for an unpredictable future.
  • The key trends to capitalize on in the new year.
  • Strategies from dealerships who are successfully selling parts online.
Tax Compliance

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2025 Parts Department Business Plan https://www.revolutionparts.com/ebook/2025-parts-department-business-plan/ Fri, 20 Dec 2024 20:57:09 +0000 https://www.revolutionparts.com/?p=337355 The post 2025 Parts Department Business Plan appeared first on RevolutionParts - Sell Parts and Accessories.

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The online auto parts market is booming, and your parts department has a huge opportunity to grow profitable revenue and sell to customers nationwide. 

This complete Business Plan includes:

  • A detailed plan to grow profitable parts revenue in 2025
  • Strategies to improve inventory management
  • A toolkit to expand your dealership to a national market
Tax Compliance

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Cyber Weekend 2024: RevolutionParts Dealers Lead the Charge in Online Parts Sales https://www.revolutionparts.com/blog/revolutionparts-dealers-lead-the-charge-in-online-parts-sales/ Wed, 11 Dec 2024 01:07:53 +0000 https://www.revolutionparts.com/?p=337293 The post Cyber Weekend 2024: RevolutionParts Dealers Lead the Charge in Online Parts Sales appeared first on RevolutionParts - Sell Parts and Accessories.

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As 2024 draws to a close, one thing is clear: the online parts market is booming. Despite the ongoing challenges from inflation, supply chain issues, and the continued effects of the UAW strike, RevolutionParts dealers demonstrated that selling parts online isn’t just an option—it’s a proven, profitable strategy. And this year, Cyber Weekend (Black Friday through Cyber Monday) was no exception.

Record-Breaking Success

RevolutionParts dealers came through with impressive performance, driving $6,233,904 in parts and accessories sales during the 2024 Cyber Weekend. This massive total reaffirms that online parts sales are a significant revenue opportunity for those who seize it. Whether it’s a tough year or a smooth one, online sales remain a core revenue stream for dealerships, providing stability and growth in an unpredictable market.

These results are a direct testament to how dealers are leveraging RevolutionParts’ platform to reach more customers, sell high-ticket items, and tap into a growing online market. With a data-driven and easy-to-use eCommerce platform, RevolutionParts helps dealerships future-proof their businesses by selling parts and accessories online—and they’re doing it with ease.

"Some people in my team weren’t sure about it at first. But now they’ve changed their minds—especially after we come in on a Monday morning and have 120 orders in the queue!"

Bill Green, Parts Manager at Stillwell Ford

Cyber Weekend Top-Selling Brands

While RevolutionParts dealers excelled across the board, some brands really stood out in Cyber Weekend 2024:

The standout parts this year were high-value, high-demand items, showing that consumers are increasingly comfortable purchasing big-ticket items online. Some of the top-selling parts include:

Mirror Assembly
Axle Assembly
Catalytic Converter
Alloy Wheels
Rotor
"If you’re not interested in growing your business, then don’t bother (selling parts online). But if you are, this is a great way to do it. You can start as small as you want and grow at your own pace."

Bill Green, Parts Manager at Stillwell Ford

The significant demand for expensive items like axle assemblies, catalytic converters, and alloy wheels reveals that consumers are more than willing to spend on parts through online channels.

RevolutionParts Tools and Features

RevolutionParts continues to arm dealers with the tools they need to succeed in the eCommerce space. With an easy-to-use platform that integrates seamlessly with a dealership’s operations, RevolutionParts helps dealers easily manage their parts catalog, fulfill orders, and track sales—all while expanding their market reach.

Key features that drive success:

  • Webstore Integration: RevolutionParts dealers enjoy dedicated online stores that are separate from their primary dealership websites, creating a user-friendly, branded experience for customers.
  • Marketplaces: Sellers on platforms like eBay and Amazon can seamlessly integrate their catalogs with RevolutionParts’ tools, further extending their reach.
  • Catalog Management: Automatic updates mean dealerships always have the latest parts available for customers.
  • Order Management: Streamlined order processing helps keep track of sales, shipping, and inventory.

With RevolutionParts, dealerships have the infrastructure to scale and manage their online presence with ease—empowering them to drive revenue and connect with digital customers during major shopping events like Cyber Weekend.

The Growing Necessity of Parts eCommerce

Looking ahead to 2025 and beyond, the auto industry is set to see an explosion in online parts sales. According to NADA, online sales of auto parts and accessories are projected to grow by 50% over the next five years. This growth signals a major shift in how consumers shop for parts—and dealerships need to adapt.

As consumer expectations evolve, the convenience and availability of online shopping continue to drive demand for auto parts. If your dealership isn’t selling parts online yet, now is the time to start. 

"Selling parts online is a trust fall, but it’s the best thing you’ll ever do."

Scott Lindwall, Fixed Ops Director at Bommarito Ford

Looking Toward Success in 2025

Heading into 2025, the data is clear: online sales are a necessity for dealerships in 2025. RevolutionParts dealers are already proving that online parts and accessories sales can bring in substantial revenue, as in the impressive performance during Cyber Weekend.

With a platform designed to make online sales simple, scalable, and profitable, RevolutionParts is leading the charge in helping dealerships secure their future and drive even more revenue from parts eCommerce.

“We’ve grown our part sales by 400% within a year (by selling parts online)."

Ryan Meachem, Parts Manager at Hyundai of the Shoals

Ready to make 2025 your most profitable year yet?

Tap into the booming online parts and accessories market today—RevolutionParts can help you get there.

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Hyundai of the Shoals https://www.revolutionparts.com/case-studies/hyundai-of-the-shoals/ Fri, 06 Dec 2024 21:32:41 +0000 https://www.revolutionparts.com/?p=337149 The post Hyundai of the Shoals appeared first on RevolutionParts - Sell Parts and Accessories.

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How One Hyundai Parts Manager Quadrupled Sales and Transformed a Department

When Ryan Meachem took the reins as Parts Manager at Hyundai of the Shoals, he found himself staring down the barrel of a challenge: a parts department struggling to find its footing. The dealership had never had a parts manager, and with a mountain of obsolete inventory weighing down operations, it was clear Ryan had his work cut out for him. In just a matter of months, Ryan had transformed the department with a strategy that combined airtight processes, expert inventory management, and online parts sales.

But, how did he manage to take a department in desperate need of strong leadership to a pinnacle of efficiency and profitability? This is Ryan’s story of grit, innovation, and the strategic use of modern selling tools that has quadrupled sales in Hyundai of the Shoals’ parts department in under a year.

The Challenge:
A Department on the Brink of Change

When Ryan joined Hyundai of the Shoals in October 2024, the sales volume in his first month hovered just around $15,000. Ryan saw an opportunity for change. 

His first order of business was to stabilize the department’s daily operations. “I knew I had to break bad habits for my employees and create good ones,” Ryan recalled. He started with the basics: inventory management. The team before him didn’t have a process for returning unsold parts, which led to a stockpile of unnecessary inventory collecting dust. So, Ryan added a new system for tracking special orders and keeping a healthy stock rotation. 

Ryan isn’t the type to settle for simply keeping things running. He knew there was more potential in the department, which led him to propose taking the department online. His GM and directors were skeptical because this was new territory, but Ryan was confident. “They trusted my idea and ambition, even though they weren’t sure about the whole online thing at first,” he said. And it paid off—the results were almost immediate.

The Profitable Shift:
Online Sales for Explosive Growth

Ryan had been considering parts eCommerce in previous roles for years and finally found the right moment to pursue it. “I wanted to find a way to generate more revenue without relying on wholesale relationships, which were limited in our area,” he explained. After only eight weeks of experimenting with online part sales, Ryan quickly saw eCommerce was outpacing wholesale revenue at the dealership. 

In his second month of selling online, his parts department grossed over $63,000, shattering previous records. “We’ve exceeded our expectations, and my GM and directors couldn’t be happier,” Ryan said. This instant success proved there was a huge market for Hyundai parts beyond local boundaries.

One of the biggest wins Ryan saw from selling online was the ability to move obsolete parts. “I can’t stress enough how important it is to clear out old inventory,” he said. Selling online has allowed him to offload parts that were just sitting around, turning them into cash. In two months, he knocked his 20% obsolescence down to an impressive 0%. “It’s crazy how quickly things move online,” Ryan admitted. “What was sitting on the shelf for months is now out the door.”

Selling online also made the department more profitable. Ryan managed to recover his upfront investment costs in the first month alone. “By October, we netted around $5,000 after covering all expenses,” he said. What Ryan once thought was an uncertain gamble turned into a calculated success that has the department running at full throttle.

Ryan’s Parts Department Pro-Tips

Ryan’s success offers invaluable lessons to any parts manager or other dealership leader looking to maximize the earning potential of their parts department. If you’re thinking about making the leap to online part sales, here are some of his tips that could help a beginner start on the right foot:

Prioritize Inventory Management

First things first: get your inventory under control. Inventory management is the backbone of any successful sales strategy. “You need to know what you have and how to sell it,” he says. He keeps things organized with daily inventory checks and a reliable system for tracking special orders. 

Take Time for Details

When it comes to online sales, details matter. Ryan emphasizes that the quality of your product listings can make or break a sale. “Take quality photos of parts and post them online,” he recommends. “When customers can see what they’re buying, they’re more likely to make a purchase.” 

Be Prepared for a Learning Curve

Launching a parts webstore isn’t always smooth sailing—there’s bound to be some hiccups along the way. But Ryan believes you can navigate it. “Embrace the chaos,” he suggests. “If you stay organized and focused, it can lead to significant rewards.”

Train Your Team

Don’t forget about your team! Ryan believes in empowering his employees to take on more responsibilities. “Train your employees to be better than you,” he states. It’s not just about making your life easier—when everyone feels confident in their roles, it shows in their performance.

Adapt to Customer Expectations

Ryan highlights the importance of excellent communication when you’re selling to online customers. “You have to be quick and responsive,” he advises. With his organized approach to daily operations and commitment to timely fulfillment, he has created a customer experience that keeps buyers coming back.

Ryan’s Aspirations for 2025

Ryan is optimistic about where online parts sales can take him and the Hyundai of the Shoals team. He plans to turn the parts department into a six-figure grossing operation by the end of 2025. “We’ve grown our part sales by 400% within a year, so I know we can reach that target,” he said confidently. “With the right strategies in place and a focus on online sales, the sky’s the limit,” he remarked. 

For parts managers and dealership leaders looking to level up, Ryan’s story serves as a roadmap to success. Shifting to online sales has created a new profitable revenue stream and the success has empowered his parts team. As the automotive industry continues to change, bringing in digital tools will be the big difference for teams committed to staying competitive and driving sustainable growth.

Don't Miss Out!

Discover how RevolutionParts can help you boost your online parts sales and streamline your operations. Schedule your free demo today and take the first step towards transforming your parts department.

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Bommarito Ford https://www.revolutionparts.com/case-studies/bommarito-ford/ Fri, 06 Dec 2024 21:29:14 +0000 https://www.revolutionparts.com/?p=337157 The post Bommarito Ford appeared first on RevolutionParts - Sell Parts and Accessories.

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Turning Parts Employees into Online Sales Leaders

Bommarito Ford has achieved amazing results with its parts department, reporting 407 orders and $82,462.52 in sales in just 30 days. These numbers highlight the growing power of parts eCommerce. At the heart of this success is Fixed Ops Director Scott Lindwall’s philosophy: “Your bottom line is your front line, and your people are your front line.” 

Bommarito Ford Rolling 30-Day Online Part Sales

407

Orders

$6,025.88

Gross Profit

$82,462.52

Sales

$202.61

Average Order

Grow Your Own High-Impact Parts Employees 

Scott Lindwall’s journey to becoming Fixed Ops Director for the Bommarito Group began on the ground floor as a parts manager. Over the years, he worked his way up, gaining firsthand experience and a deep understanding of what it takes to build a successful team. 

Now overseeing operations at multiple dealerships—Ford, Nissan, Honda, VW, and Toyota—Lindwall has led the charge in embracing online sales, being the first in the group to adopt RevolutionParts seven years ago.

“I spend money with folks who I trust,” said Lindwall, and that trust starts within his own team. 

Hiring a new parts manager, Ben Hannock, was a turning point. Within 30 days of Hannock’s arrival, the department experienced 100% growth. 

Lindwall emphasized, “When you invest in your people and set them up to win, they deliver.”  

Leadership continually invests in the parts department by encouraging them to discuss and share ideas internally, sending them to seminars and other industry events, and providing educational reading materials.

Taking on Aftermarket Retailers with RevolutionParts

Traditionally, the success of a parts department was tied to the sales floor and service drive. Today, the competition extends beyond local markets to 24/7 aftermarket retailers. 

Lindwall said, “Our competition is the aftermarket—they’re working 24/7, and we have the ability to do the same thing and even better.”

Using RevolutionParts, Bommarito Ford turned its parts department into a strong online business that customers can shop from anytime, anywhere. Selling parts online has helped the dealership reach beyond local customers and compete across the whole country.

RevolutionParts has played a big role in helping Bommarito Ford succeed with selling parts online. The platform handles the background tasks, allowing the dealership to focus on sales and taking care of customers. 

Lindwall had simple advice for other dealers: “It’s a trust fall, but it’s the best thing you’ll ever do.”

He also gives credit to RevolutionParts’ consulting services, especially Mike King, for sharing tips and strategies that really work. Lindwall recommended, “Follow their recommendations.”

Turning Inventory Into Cash, One Sale at a Time

For Bommarito Ford, keeping inventory clean and moving isn’t a challenge—it’s a way of doing business. Lindwall believes in treating inventory like “piles of money.” He explained, “The more you can move it, the cleaner you keep it, and the more money you can earn.”  

RevolutionParts helps Bommarito Ford stay on top of this process by making it easy to sell parts online. The platform turns slow-moving inventory into profit by connecting the dealership with customers all over the country. By staying focused on quick sales and avoiding stockpile issues, the parts department operates more efficiently and keeps profits growing. 

Making It Easy for Customers to Keep Coming Back  

Lindwall knows how important it is to make things simple for customers. “It’s not what you like, it’s the consumer,” he chuckled, quoting the movie Joe Dirt.  

Selling parts online fits perfectly with this idea. It lets customers shop whenever they want, on their own time. This convenience helps Bommarito Ford stand out and keeps customers coming back.  

Lindwall had a big goal: “One day, my parts department is going to outgross our service department.” With hard work and the help of eCommerce, that’s exactly what happened. Selling parts online played a big role in reaching that milestone and making the department a leader in the dealership.  

Advice for Dealerships Not Yet Selling Parts Online  

For dealerships unsure about selling parts online, Lindwall has some simple advice: go for it. “It’s totally doable,” he said. While it may require some extra work, having the right tools and support makes it much easier—and the rewards are worth it.  

Lindwall encouraged General Managers to trust their operators and consider new programs and tools. “General Managers need to listen to their operators about the programs and tools that are out there,” he explained. “In the dealership, you have to use every revenue opportunity available to you.”  

With RevolutionParts, Bommarito Ford has done just that. The platform has been a game-changer, turning online parts sales into a powerful way to boost revenue and reach more customers. For Lindwall, selling parts online isn’t just a good idea—it’s essential for staying competitive and growing the business.  

Invest in People, Embrace Technology, Achieve Big Goals

Bommarito Ford’s story shows how focusing on people and using the right technology can turn a parts department into a strong and profitable business. By supporting employees, focusing on customer experience, and using RevolutionParts for online sales, the dealership has created a model for success.  

Lindwall summed it up perfectly: “Taking risks is part of being great.” For dealerships ready to invest in their team and embrace online sales, Bommarito Ford offers a clear path to reaching big goals.

Don't Miss Out!

Discover how RevolutionParts can help you boost your online parts sales and streamline your operations. Schedule your free demo today and take the first step towards transforming your parts department.

The post Bommarito Ford appeared first on RevolutionParts - Sell Parts and Accessories.

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Stillwell Ford https://www.revolutionparts.com/case-studies/stillwell-ford/ Wed, 04 Dec 2024 17:47:31 +0000 https://www.revolutionparts.com/?p=337134 The post Stillwell Ford appeared first on RevolutionParts - Sell Parts and Accessories.

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How Stillwell Ford Achieved $200k+ in Sales and $23k+ Profit in One Month with Selling Parts Online

Parts managers like Bill Green at Stillwell Ford are forever changing how dealerships do business. A little more than three years ago, Bill started at Stillwell Ford and right away leveled up his department from a support function for service and sales to a totally new profit maker for the dealership. Using RevolutionParts, he has driven rolling 30-day sales of 800+ orders and $200,000+ in revenue. There are benefits beyond the profitable revenue boost, too: trust from his general manager, steady growth, and lots of manufacturer kickbacks.

Rolling 30-day sales volume

839

Orders

$23,271.57

Gross Profit

$200,316.11

Sales

$238.76

Average Order

A Vision for Big Growth

In the past—and at many dealerships still today—parts departments relied on vehicle sales and service volume to meet their revenue goals, making growth difficult without a huge budget and dealership expansion. But Bill, a manager with 40+ years of automotive industry experience, knew that online selling could provide the parts department with a scalable source of income. With RevolutionParts, Stillwell Ford entered the digital parts market, allowing them to bypass the geographic limits of a small-town dealership and open up a new nationwide customer base.

Bill says: “I tried to make it work at a few places before, but I didn’t have any support from the owners. Then I went to my current boss. At first, he said no. Later, I came back with more info, plus there was a discount program for Ford dealers. I also got advice from our IT guy, who thought it was a good idea. With better details and a lower price, we finally went for it.”

““Now, we’re wondering why we didn’t do it sooner!””

Overcoming Skepticism & Training His Team

Bill’s parts team was skeptical at first—many of his employees were uncomfortable with the idea of the technology, especially those who had worked in traditional parts roles for decades. However, Bill is a very capable and convincing leader, and with RevolutionParts’ help and easy-to-use tools, he quickly trained his team to manage and fulfill online orders.

Now, Stillwell Ford’s parts department is doing so much business online that they have multiple new full-time team members managing online order processing, customer calls, emails, and outbound packaging.

“Some people in my team weren’t sure about it at first. But now they’ve changed their minds—especially after we come in on a Monday morning and have 120 orders in the queue!” Bill says.

The Financial Impact: Volume, Kickbacks, & Profit

Unlike over-the-counter sales, where profit margins are typically higher, online sales often come with smaller margins. However, online sales is a volume game which has helped Stillwell Ford tap into a new source of profit, a cleaner inventory, and manufacturer kickbacks from Ford. 

“I’m not just stocking parts randomly—we use Ford’s RIM program, so parts get added automatically and are protected from going obsolete. Plus, we make money on shipping, and our higher purchase volume moved us to a better discount category with Ford. It all adds up to bigger profits. It also lets me stock parts I wouldn’t usually carry,” says Bill.

“With the part sales history we have now, it benefits our service department, retail customers, and even wholesale buyers since we have more parts available.”

Success Has No Limit

For Bill, selling parts online was an exciting challenge that renewed his enthusiasm for his career. Having started in the dealership business in the 1980s, Bill has seen firsthand how the industry has evolved. His journey has included roles at a Jeep, Buick, and GMC dealership, time with BMW Corporate, and now his position at Stillwell Ford. 

“Adding the internet side of things gets me excited, even though it was a lot to learn at first. But now I really enjoy this work and think I’m good at it. We’re still improving every day, solving customer issues and getting better at what we do,” Bill says.  

For seasoned managers, taking up online retailing might seem scary at first, but as Bill’s story shows, it’s totally doable—and can even make your job more rewarding (and definitely more lucrative). By stepping into online parts sales, Bill found a scalable revenue source and a way to simplify the day-to-day pressures of managing a parts department.

“Now our owner trusts me to manage the department without micromanaging, which isn’t always the case at other dealerships.” 

The steady flow of online orders eases the stress of hitting traditional monthly sales targets, allowing Bill to focus on long-term growth and customer satisfaction.  

Key Takeaways for Dealerships

Considering the move into online parts retailing? Bill’s message is clear: take the leap. As Bill puts it, “It’s a huge market out there, and it continues to grow. If you don’t get in now, you’re going to be left behind or playing catch-up later.”  

The opportunity is great, with billions of dollars circulating in the online parts market and even more growth projected. For dealerships that hesitate, Bill offers a candid reminder:

“If you’re not interested in growing your business, then don’t bother. But if you are, this is a great way to do it. You can start as small as you want and grow at your own pace.”  

Bill also emphasizes that dealerships don’t have to dive in at full speed right away: “You don’t have to do eBay and Amazon or buy superstore orders from the start. You can take it slower.”  

He also wants to remind you that while the work may feel challenging at first, it’s manageable. “Do some research, understand it’ll take effort, and know you don’t need to hire more people right away—but you’ll eventually need to as your business grows.”  

Finally, Bill reflects on his own journey, saying, “I wish I’d have been in the store 10 years ago and started it 10 years ago.”

 

A Future-Forward Approach with RevolutionParts

For dealerships not yet online, Bill’s success story serves as both inspiration and a clear roadmap. Selling parts online has been a game-changer for Stillwell Ford, offering both stability and expansion opportunities for the dealership. With RevolutionParts, both traditionally-seasoned and tech-savvy parts managers alike can drive huge growth in a dealership’s parts department.

Don't Miss Out!

Discover how RevolutionParts can help you boost your online parts sales and streamline your operations. Schedule your free demo today and take the first step towards transforming your parts department.

The post Stillwell Ford appeared first on RevolutionParts - Sell Parts and Accessories.

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Parts Manager’s Guide to Sell More Accessories https://www.revolutionparts.com/ebook/parts-managers-guide-to-sell-more-accessories/ Tue, 03 Dec 2024 15:34:37 +0000 https://www.revolutionparts.com/?p=337117 The post Parts Manager’s Guide to Sell More Accessories appeared first on RevolutionParts - Sell Parts and Accessories.

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The automotive accessories market is worth over $500 Billion. Is your parts department getting its fair share of the profit?

In this guide, learn how to:

  • Set up your parts department to sell more accessories profitably.
  • Expand your reach and attract parts customers nationwide.
  • Start 2025 strong with a brand new profit center.
Tax Compliance

The post Parts Manager’s Guide to Sell More Accessories appeared first on RevolutionParts - Sell Parts and Accessories.

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General Manager’s Guide to Boosting Profitable Accessory Sales https://www.revolutionparts.com/ebook/gm-boosting-profitable-accessory-sales/ Tue, 03 Dec 2024 02:58:14 +0000 https://www.revolutionparts.com/?p=337101 The post General Manager’s Guide to Boosting Profitable Accessory Sales appeared first on RevolutionParts - Sell Parts and Accessories.

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The automotive accessories market is worth over $500 Billion. Is your dealership getting its fair share of the profit?

In this guide, learn how to:

  • Set up your parts department to sell more accessories profitably.
  • Expand your dealership’s reach and attract customers nationwide.
  • Start 2025 strong with a brand new profit center in your dealership.
Tax Compliance

The post General Manager’s Guide to Boosting Profitable Accessory Sales appeared first on RevolutionParts - Sell Parts and Accessories.

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Simple Strategies to Sell More Parts https://www.revolutionparts.com/ebook/simple-strategies-to-sell-more-parts/ Mon, 25 Nov 2024 23:07:07 +0000 https://www.revolutionparts.com/?p=337082 The post Simple Strategies to Sell More Parts appeared first on RevolutionParts - Sell Parts and Accessories.

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Tap into your Parts Department’s full revenue potential.

Struggling to find new ways to sell more parts? How this guide can help:

  • Increase parts sales in just one month with a simple, easy plan.
  • Start 2025 ready to beat your sales goals every month.
  • Get expert tips from top parts sellers to take advantage of online parts sales.
Tax Compliance

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The Hidden Costs of an Inefficient Parts Department on Your Dealership https://www.revolutionparts.com/blog/the-hidden-costs-of-an-inefficient-parts-department-on-your-dealership/ Thu, 14 Nov 2024 09:23:10 +0000 https://www.revolutionparts.com/?p=337036 The post The Hidden Costs of an Inefficient Parts Department on Your Dealership appeared first on RevolutionParts - Sell Parts and Accessories.

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Achieving 100% fixed absorption is a must for the long-term success of your dealership—especially 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. 

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 strongest armor protecting your dealership’s success is in the fixed ops department. But only if you have the tools and processes in place to reach your full revenue potential.

Let’s explore the hidden costs associated with dealership parts inefficiencies. Plus, we’ll share how modernizing your processes can boost your dealership’s profitability and customer satisfaction.

Finding Inefficiencies in the Parts Department

Operational inefficiencies have a snowball effect on dealership profitability. Here are some of the most common inefficiencies that dealerships face:

Poor Inventory Management = Lost Sales Opportunities

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—losing customers to your competition. 

Outdated Ordering Processes = High Obsolescence Costs

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’s budget. When you’re dealing with the razor thin margins of the modern dealership, missteps like this really hurt. 

Lack of eCommerce = Failure to Meet Customers Where They Are

Many parts departments still operate with traditional sales methods, limiting their customer base to walk-ins, phone orders, and service lanes. There’s no way around it—customers prefer to buy parts online, expecting an easy shopping experience that dealerships without eCommerce simply can’t deliver. If you don’t embrace eCommerce now, it will continue to result in more and more lost customers, eventually resulting in your dealership getting left behind. 

In fact, according to our 2023 eCommerce Shopper Behavior Report, 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’t currently selling parts online, that’s a lot of customers to be missing out on…

The Vital Role of the Parts Department in Fixed Operations

A well-managed parts department is key to the success of fixed operations. As Tully Williams famously said: 

“Without great parts people, without great parts inventory there is no service department. HOURS are sold because of parts, parts sell HOURS.” 

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.

Here’s how an efficient parts department can enhance service operations:

  • Reduced service delays: Quick access to the right parts ensures that service jobs can be completed on time.
  • Increased technician productivity: When technicians have the necessary parts available, they can focus on completing jobs rather than waiting on parts.

Boosted dealership profitability: By optimizing parts management, dealerships can sell more labor hours, contributing to higher fixed absorption rates.

Embracing Modern Automotive eCommerce Solutions

If you’re like 95% of U.S. dealerships, you know there’s 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 tap into your parts department’s revenue potential, adding an eCommerce channel is a must. Here’s why:

Reach a Larger Market

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’s footprint.

Streamline Inventory Management

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.

Enhance your Customer Experience

There’s 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.

As online sales of automotive parts and accessories are expected to grow by nearly 50% between 2024 and 2030, embracing eCommerce has never been more of a must-do.

Success Stories That Speak Volumes

BMW of West Chester

BMW of West Chester saw huge success 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. 

The dealership now reports nearly $200K in online parts sales every month. Their story is a perfect example of how eCommerce can transform a parts department from a cost center into a profit generator.

Olympia Nissan

Olympia Nissan’s parts 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’s online efforts have yielded an impressive $7.3 million in revenue and $1.2 million in gross profit.

The key to this success was the dealership’s 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.

Modern INFINITI of Winston-Salem

Modern INFINITI’s 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.

In just 30 days, Modern INFINITI’s 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’s performance. By opening the store to everyday consumers, not just repair shops, Modern INFINITI expanded their customer base, increased traffic, and improved customer satisfaction.

Leveraging Data and Digital Tools for Better Decision-Making

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:

  • Inventory Turnover Rate: How often your inventory is sold and replaced over a certain period. A higher turnover rate suggests efficient inventory management.
  • Obsolescence Percentage: The percentage of your inventory that consists of obsolete parts. A high obsolescence rate indicates poor inventory management practices and wasted resources.
  • Fill Rate: How often the parts department can fill customer or service department orders without delays. A low fill rate indicates dealership parts inefficiencies in inventory management.
  • Gross Profit Margin: The percentage of revenue that exceeds the cost of goods sold. A healthy gross profit margin indicates that the dealership is maintaining profitable pricing strategies and managing costs effectively. Monitoring this helps ensure that while parts are competitively priced, the dealership is still making a sufficient profit.
  • Average Order Value (AOV): The average dollar amount spent each time a customer places an order. Increasing AOV can be a sign of effective upselling and cross-selling strategies, such as offering complementary products or bundling parts. 
  • Backorder Rate: How often the dealership’s parts are on backorder. A high backorder rate can lead to customer dissatisfaction and lost sales. By closely monitoring this metric, parts departments can work toward optimizing stock levels and ensuring timely fulfillment.
  • Customer Satisfaction Score (CSAT): This metric gauges customer satisfaction with their purchasing experience. Whether it’s based on timely delivery, the accuracy of orders, or the quality of customer service, tracking CSAT is crucial for building customer loyalty and ensuring repeat business in the competitive auto parts market.
Digital Tools for Parts Department Optimization

Inventory Management Systems:
These systems provide real-time insights into inventory levels, helping reduce the likelihood of overstocking or running out of parts.

Automated Pricing Tools:
Automating pricing adjustments based on demand and availability ensures that parts are competitively priced while maintaining profitability.

Customer Relationship Management (CRM) Platforms:
CRMs can track customer interactions and help streamline the order process.

Streamline Your Parts Operations & Boost Dealership Profitability

Dealership parts inefficiencies carry hidden costs that can quietly erode your dealership’s profitability. From lost sales and outdated inventory to customer dissatisfaction, the risks of an inefficient parts operation are significant. However, by adopting modern automotive eCommerce solutions, dealerships can transform their parts department into a powerful driver of revenue and customer loyalty.

If you fail to modernize, your dealership will continue to face unnecessary financial strain. Meanwhile, those that embrace eCommerce and optimized processes will thrive. RevolutionParts is here to help you make that transformation. Streamline your parts operations, boost dealership profitability, and ensure your long-term success by exploring the modern automotive eCommerce solutions we have to offer.

Maximize Absorption Rate and Future-Proof Your Dealership

Unlock your fixed ops revenue potential—download the Ultimate General Manager’s Roadmap to Maximize Absorption Rate for proven tips.

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