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Wednesday, April 30, 2014

What can the diesel shops sell to make better profits?

I get asked this all of the time since I have been in automotive marketing for quite some time (over 25 yrs)?

It's not an easy answer, it is always easier to sell by price! That's the easy way out but your profit margins are going to be smaller because of all the cheaper products are driven by mass selling merchandisers who sell it for even cheaper!

It's no secret that the larger .coms or warehouses buy in quantity and get lower pricing than the normal diesel shops. It is hard for a shop to compete unless he can convince the customer his service is worth paying the higher price for the product.

Which brings up another good point, most shops have now taken the policy of you don't buy from them they will not do the repair warranty work when the product goes bad or needs fixing. I think this is a good policy to have in place because they have overhead where many of the others who are selling cheap do not. Plus it is really frustrating trying to fix someone else's mistakes or bad installation.

If you find a shop that does I'm sure you are going to pay dearly for it! 

A diesel shop has his knowledge to sell, that is very valuable in a world of bolt-on performance parts in the diesel industry. You can bolt-on a lot of parts but getting them tuned in correctly so all of them work together is the trick. A good diesel shop knows how to do this.

Another thing I tell diesel shops is look for the up-sell parts that the wholesalers are not carrying or selling as much. As I said it is easier to sell cheaper and it doesn't take much experience (phone sales). Now the shops have the experience so sell the better products that the wholesalers cannot sell as easy.

It's easy to buy a cheap China made exhaust shipped in from another country with weak hangers and poor pipes but it works right? But for how long and for a shop how many alterations do you have to adjust to make it fit? Sell the better product made in the USA, yea it costs a little more $50-75 but it will not rust, fit perfectly and it will sound better.

Sell the more advanced electronic fuel pumps now available instead of the brands everyone is pricing out low-end. Wholesale the low-end ones out and who cares if they don't work or won't return calls! Is this what our industry has become? One time sales, reap the profits and who cares about the consumer?

It's the only thing a local diesel shop can have is integrity in their work! Quality materials with quality work that they stand behind! 

Sell the better tires, wheels, brakes, exhaust, turbos, injectors, tuning, etc . . . 

Sure you will have to work at it, read about what is available, learn, become knowledgeable, but education is what the customer is wanting from shop owners. 

If they want cheap tell them to go to Wallyworld or some online place, if they want it done right tell them to come back after it doesn't work out. You know how to make it right - period.

Your profit margins will be higher and soon your shop will have trucks lined up out in your parking lot. I have seen the good shops work it and become very successful.

You can email me or call if you want to know more about quality parts in our industry that has higher profit margins, be happy to talk to you.

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