Lexus Wholesale Parts had an extraordinary year in 2023, with sales reaching unprecedented levels! The Lexus Warehouse Windfall Incentive played a pivotal role in driving us to achieve our highest-ever net parts sales. The incentive, which ran from October through December 2023, was the first of its kind and motivated Lexus dealers to sharpen their focus on their wholesale parts business.

“Lexus Parts Managers were extremely excited and thankful that we created an incentive exclusively for them. While most incentives are directed toward the sales side of the business or the entire fixed operations department, the Lexus Warehouse Windfall Incentive encouraged dealers to focus on the parts side of the business in search of additional opportunities to increase net parts sales. Most dealers would agree that the incentive motivated them to enhance their processes. The result—extremely strong profit months and additional revenue opportunities.” 

—Robert Bolden
Customer Services Field Manager (CSFM)
Lexus Southern Area

The results of your efforts are undeniable! Here’s how the numbers stack up versus last year:

Lexus Dealers Score Unprecedented Success

Congratulations to our top performing dealers, who will send representatives to Minneapolis, Minnesota this spring to experience a thrilling reward: an exhilarating 60-second timed shopping spree through the BI Worldwide Merchandise Warehouse.

Spotlight on Success!

Proven Process + Partner Programs + Targeted Marketing = A Winning Combination

The Warehouse Windfall Incentive ignited enthusiasm nationwide, as Lexus Dealer Parts Professionals competed to be the best-of-the-best. With a keen focus on net parts sales, Lexus dealers nationwide combined existing processes with new initiatives to achieve record success.

Parts Process Playbook

John Baker, Lexus of Tulsa Parts Manager and incentive winner, attributes much of his team’s success to not only sticking to their playbook of proven processes but enhancing those processes with attention and finesse. His team includes two parts professionals dedicated to wholesale. But the buck doesn’t stop there—anyone on the team can jump in when things get busy, so that no client ever feels like they’re being put off by placing them on hold or transferring them. Every client is important and given the same attentive treatment. Whether retail or wholesale, each client is treated like a guest—a perfect example of Omonetashi.

“It’s about building the relationship with that wholesale customer just like you would a retail client. Most of our wholesale clients have been in business with us for many years and they have a personal relationship with us.”

-John Baker
Parts Manager
Lexus of Tulsa

While a dealership’s processes should be consistent, there’s always room for enhancement. The Warehouse Windfall Incentive motivated participants to look for additional improvement opportunities while sticking to their playbooks. One often overlooked step that goes the extra mile is to remind customers about ancillary parts. If you are selling a molding, does the customer need the clips or rivets to hold it in?

Targeted Marketing

The incentive encouraged many Lexus dealers to experience the effectiveness of targeted marketing. Using the marketing tools that Lexus provides, such as Dealer Ad Builder and RAPP’s direct mail deployment, parts managers contacted Independent Repair Facility (IRF) customers and prospects in their PMAs. A common objective was to increase awareness of Lexus Wholesale Parts’ factory sponsored discounts available through partner technology programs.

Their first foray into marketing their parts department, Lexus of Tulsa sent a mailer to 50% of shops in their PMA. They created their targeted IRF list from a combination of Repair Link and dealership DMS contacts, focusing on shops with whom they had done business but who were not familiar with the dealership’s online tools such as Repair Link, Collision Link and CCC.

“The mailer generated a significant increase in our wholesale parts business, with about a 20% increase overall in new shops setting up online accounts with us. The increase to wholesale mechanical business alone was approximately 15%.

This promotion helped to increase shops’ awareness of our discounts and price matching rules. Promoting Repair Link allowed us to offer up to 40% off list price for eligible parts and pass those savings on to the client. This allowed us to push product a lot harder than before. That’s what the Lexus Partner Programs were designed for and that’s what we did.”

—John Baker

Based upon their first direct marketing campaign, Lexus of Tulsa plans to continue targeted marketing to maintain and grow their wholesale business. Lexus dealers nationwide experienced similar motivation as the Lexus Warehouse Windfall Incentive spotlighted Lexus Wholesale Parts’ tremendous business opportunity.

First-Ever Incentive—Best-Ever Net Parts Sales!

Everyone’s a winner when sales skyrocket! Congratulations and kudos to all who contributed to our best net parts sales year ever. Thank you all for your hard work and dedication.

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