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The dealer selling aftermarket parts?

Gary A

By Gary A
in Automotive Parts & Suppliers

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Gary A

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I've seen this name a few times Magneti Marelli a division of Mopar. Never thought much of it and today I saw this piece of junk mail and never heard anybody comment on this before.

 

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ATLAuto Rising Star

ATLAuto

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Our local Toyota kills me on pricing in most cases, yet they have 10 more techs and a much higher overhead. Sure hope they sell a lot of cars!

 

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I'm actually curious on overall dealer overhead. I bet as a percentage of repair, it is actually less than ours. The dealers in Atlanta have huge 20+ bay warehouses and can really get some solid economies of scale going. With a shop that big they can specialize in a bunch of areas, have steady work flowing into each of them, and crank through a ton of low priced repairs, and still come out with a great profit in the bank.

 

Honestly, I'm not surprised they are lowering prices. With their structure, they could easily undercut most independents and still make a bunch of cash. It's Wal-Mart level scale vs. a small mom and pop grocery store.

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ncautoshop Proficient

ncautoshop

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I'm actually curious on overall dealer overhead.  I bet as a percentage of repair, it is actually less than ours.  The dealers in Atlanta have huge 20+ bay warehouses and can really get some solid economies of scale going.  With a shop that big they can specialize in a bunch of areas, have steady work flowing into each of them, and crank through a ton of low priced repairs, and still come out with a great profit in the bank.

 

Honestly, I'm not surprised they are lowering prices.  With their structure, they could easily undercut most independents and still make a bunch of cash.  It's Wal-Mart level scale vs. a small mom and pop grocery store.

That's an interesting concept. I've always felt our local dealers left a lot to be desired quality wise. I always assumed they had a higher overhead. Our local dealers are all single store setups except for imports which all seem to be chain stores.

If your thoughts are in fact the case a good portion of us may be working for a dealer when it's all said and done!

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    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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