DealersEdge Professional Forums

Is anyone loosing body part sales to LKQ and the aftermarket? Any ideas on how to combat this?

Thanks

Several insurance companies have gone back to LKQ or Used parts again. My body shop manager expects me to price match LKQ/Used......Hmmm, let's see...I have to give him 50% of my profit...and then he wants me to give parts away.....sounds like a GREAT Idea to me....here's my question...if GM/FORD/DMX Really want to help their dealers....cut Body parts prices...by 50%....forget 0.0 % financing....don't they know where the real money is made?

Yes...I am being a BIT overboard here...but what do you do? Continue to put shabby LKQ parts on a customer's car? How many of you have "Disclosure" Forms? How many Body Shop Managers actually TRY to explain the difference between Genuine and LKQ? Before I go on, I would love to know the answers to those questions.

As one who has worked as both body shop manager and parts manager, I can state with certainty that the insurance companies have the upper hand-

1. Body shops don't want to upset the insurers, as "direct repair shops" are becoming more prevalent.

2. Even if the insured knows about and wants OEM, they are afraid to bring it up to their insurer, thinking they will get their ratres increased, or policy cancelled.

The OEM's feel the best plan of attack is to educate the customer. When we do our regular New Car Orientation, we talk about OE quality in both hard parts AND body parts. I don't know as there is an answer.....

Partsguy

You would do well to contact your body shop customers ahead of time and let them know you are willing to go down on prices to compete. BUT make sure you have a set matrix or discount so your counter people won't have to come and get approval from you every time. In my experience, if a bodyshop has a choice he will go with factory parts. Make sure you get a copy of the estimate, otherwise you will be sellilng all your parts at LKQ prices.