SERVICEVIEW—MAXIMIZE YOUR WHOLESALE PARTS POTENTIAL
The wholesale parts market is expanding annually, yet a limited number of dealers are currently capitalizing on this growth within a 10-mile radius of their dealership. Therefore, a significant untapped opportunity exists for dealers to expand their reach and revenue streams by optimizing their wholesale parts sales strategy. By tapping into local collision and mechanical wholesale parts sales potential, you’re sure to generate significant revenue.
The wholesale parts landscape is much larger than most dealers realize at $123 billion annually. Of that, $75.6 billion are mechanical repair parts and $30.75 billion are collision repair parts. It’s realistic to say that every Lexus dealer has the potential to generate $10 million a year in wholesale parts sales.
And when comparing Original Equipment (OE) parts sales to non-OE (aftermarket) parts sales, it’s clear that Independent Collision Repair Facilities (IRFs) are using more non-OE collision repair parts, demonstrating the market potential in that area.
EXPLORING YOUR COLLISION AND MECHANICAL PARTS REVENUE OPPORTUNITIES
Lexus created the Wholesale Parts Market Report so you can see the IRFs in your area as well as review the wholesale mechanical and collision parts potential that exists within a 10-mile radius of your dealership, your PMA (Primary Market Area). By understanding which shops are excelling in these areas, you can identify potential opportunities for collaboration, strategic partnerships, and targeted marketing efforts to maximize your own revenue from wholesale parts. This report includes a summary chart that allows you to visualize the potential for these parts, as well as data on the total number of Lexus vehicles (10-year UIO) by model and series, plus a map and dot density diagrams illustrating the zip codes in your PMA and locations of the shops relative to your dealership.
Once signed into ServiceView, to generate this report, follow these steps:
- Select the hamburger menu to display the drop-down navigation options.
- Select “Document Manager.”
- Then click on your dealer’s Wholesale Report to initiate the download.
Once the report is downloaded, open it and you can review:
- Mechanical Parts Revenue Opportunity – this feature forecasts your potential earnings from mechanical parts sales within a 10-mile radius of your dealership, factoring in vehicle age and model.
- Collision Parts Revenue Opportunity – uses the same criteria to determine potential collision parts revenue.
- Total Wholesale Parts Opportunity – this summary chart displays the potential of both mechanical and collision parts sales.
Total UIO Bar Chart by Model Year – indicates the total number of Lexus vehicles in operation within the 10-mile market area. This chart showcases the total number of units in operation categorized by model series. Utilizing this valuable data, you can formulate strategic plans that precisely target your marketing endeavors toward the vehicles currently in operation within your PMA.
MAPPING THE RESULTS
Mapping provides a view of the opportunities available within a 10-mile radius of your dealership. You can organize this information using three maps: (1) a Zip Code Map, (2) a Mechanical Repair Locations Map, and (3) a Collision Repair Locations Map.
Now that you have defined and identified what IRFs are in your PMA Lexus makes it even easier to connect with these shops via wholesale parts ads.
PERSONALIZED LEXUS WHOLESALE PARTS ADS
Visit Lexuswholesalepartshub.com to take advantage of our pre-made parts ads or customizable Dealer Ad templates on designed to highlight specific Lexus parts with your dealer discounts and contact information. These eye-catching ads have been carefully crafted to captivate your audience and boost their interest in the featured parts (which you can fine-tune by studying the UIO chart). Simply select the parts you want to promote and customize the ad to suit your dealership’s unique needs. Then, share them with your shops. Additionally, don’t forget the personal touch, have someone physically visit those shops to deliver the ad or pick up the phone and call them.
Leverage the DENSO “Feet on the Street” program to establish connections with these potential customers. See the Wholesale Best Practices Workshop story in this issue for more information on this program, and in the next issue of WIN, there will be an in-depth story on the “Feet on the Street” program.
By analyzing the Wholesale Parts Market Report, you can target which collision and mechanical IRFs to pursue to become a wholesale customer for your Parts Department, encourage your existing IRFs to purchase more Lexus Genuine Parts from your dealership, and make the most of this opportunity.
