By Bob Balderston
While picking up some parts at your local jobber warehouse, you pull up once again and find the local automotive dealership delivery van parked in the will-call lot. Once inside, you see your salesman and when he comes over for some early-morning banter, you express your concern about what you are seeing.
It’s sad but true it appears the dealership is buying and selling aftermarket parts from the very same sources you use and at the same pricing. Now, before you blow your top or want to defend the notion, let me have a chance to explain my view on the matter.
Realize that in many small communities, the local car dealer is also the corner bait and tackle, quickie mart and/or local jobber parts store. In larger markets, Chevy, Dodge or Ford dealerships are so close that even Starbucks can’t match the breadth of their store coverage. But in the dealerships’ fight for more business and attempts to provide parts for more than just their own dealership installation needs, they are blazing a new path and blurring the line of parts sales.
It’s bad enough you have to worry about shrinking markets, inventory controls, out-of-control SKU levels, rising costs all across the board and everything else. But there they are, buying at the same cost from the same suppliers that you have had for years.
What really irks me (and probably you too) is the fact that those in the aftermarket can’t buy the same OEM parts from the manufacturer at dealer cost. But yet, they now, and for some time, have been using this unfair advantage against us.
Having worked in both the dealer/OEM realm and the aftermarket field, I can honestly say it isn’t getting any prettier for us in the aftermarket. Aftermarket manufacturers, hungry for business and shrinking market presence, are courting and selling direct to your customers at your cost. At the same time, those same suppliers, which also make OEM parts, are selling the aftermarket side of their parts lines to dealerships at preferred pricing.
So, how do we combat this larger-than-life issue? I suggest taking it to the streets and to your local and state associations. Join in your local buying groups and let your voice be heard. We in the aftermarket need to get our suppliers to understand and correct this problem and help us level the playing field.
Bob Balderston has more than 25 years of parts distribution experience in both retail and wholesale auto and truck parts sales. He’s ASE certified and currently operates an Internet parts business based in Detroit.