Wholesale Shops—The Newest Profit Center
WHOLESALE SHOPS AS PROFIT CENTERS
Lexus service parts sales are one of the fastest-growing profit centers in the Lexus dealership network. The Wholesale Parts Department is a logical extension to an already profitable opportunity. With your strong independent repair and body shop relationships and your dedicated parts sales training, your wholesale parts business can be as lucrative as your Lexus Service Drive.
With millions of Lexus vehicles on the road and as the vehicle population ages, wholesale parts sales opportunities will only continue to grow. Considering the number of potential shops, repair facilities, and installers near your dealership, identifying and targeting the right independent collision or mechanical repair facilities operations in your area is key to growing Lexus Genuine Parts sales. Managing a growing business means taking advantage of every opportunity. You can respond to that growth by looking at independent repair facilities as potential sales growth opportunities. Information within ServiceView can help you identify IRFs and collision centers within your PMA. PSX’s CRM tools can help you manage your contacts with them as you develop a selling relationship with the shops in your area.
SUPPORTING THE OWNERSHIP CYCLE
An organic ownership cycle typically has dealer service departments repairing new vehicles and independent shops fixing older vehicles. Lexus dealers can support the full ownership cycle by building relationships with the IRFs who are servicing older Lexus vehicles. This creates a great opportunity for future wholesale parts sales. It not only helps increase vehicle sales, but also keeps a steady stream of newer vehicles coming to the service drive for parts replacement.
Selling parts is not the only benefit. Lexus Dealer influence over customer satisfaction can extend to independent shops. And since brand retention improves when vehicle owners are satisfied, Lexus Dealers may benefit when customers keep their Lexus a Lexus.
TONS OF MECHANICAL AND COLLISION SALES OPPORTUNITY
Independent mechanical repair shops install nearly $25 million dollars in parts on Lexus vehicles per dealer primary market area (PMA) per year*. This means there are over $20 million dollars in growth opportunities per dealer. And while Lexus dealers won’t capture all the business, collecting an extra 5% of the opportunity can add over $1.25 million dollars per year in part sales per dealer. One way to capture those sales opportunities is through support to your local independent repair shops. Building shop advocacy helps turn independent shops into profit centers for your Lexus Parts Department. You can support your local IRF with repair information, support, and hotshot delivery service. More importantly, Lexus provides the tools and parts ordering systems to make it all happen. Let’s take a look at them.
LEXUS LEADING THE WAY
Lexus is making it easy for you to grow independent shops into brand advocates. To support your business, Lexus has partnered with industry-leading tools and parts ordering systems in the industry to make it easy for dealerships to turn their wholesale shops into potentially lucrative profit centers. And to increase your chance of success, Lexus has added special pricing programs so you can help your new Collision Center partners increase their use of Lexus Genuine Parts.
AVAILABLE TOOLS
Parts Ordering — To learn more about the partnered ordering systems, visit our endorsed partner sites including:
- OPS Trax® — Overall Parts Solutions (OPS)
- Microcat PartsBridge
- RepairLink® and CollisionLink® — OEC
MORE RESOURCES
WHOLESALE GROWTH
PSX helps you find and target the right wholesale shops. Learn more in this Lexus WIN article: Opportunity Bulletin — Lexus Win
COMPETITIVE PARTS PRICING
Lexus is pricing key parts competitively to help you increase wholesale sales. Learn more in this Lexus WIN article Parts Pricing Reductions — Lexus Win
LEARN FROM THE BEST
Read how leading Lexus dealerships capture the wholesale business. Lexus Wholesale Parts Pros Unite — Lexus Win
*Calculations derived from data presented in AutomotiveAftermarket.org and NADA
