Independent repair shops are turning to retailers more than any other aftermarket supplier when making product purchases. The main reason? Price.
The Aftermarket Business World Independent Shop Product Study reveals more than one-third of shop respondents named retailers as their preferred supplier for aftermarket parts. Jobbers and warehouse distributors are shops' second and third choices for preferred suppliers, results show.
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Half of the shops surveyed use one to two suppliers for their aftermarket purchases, while 40 percent use between three and four.
Cost is giving retailers the edge, with fair pricing selected by more than one third of respondents as the most important supplier quality they consider. Parts availability and inventory options are also deemed important characteristics.
Shops report that product quality is the most important need of their professional customers. Price, OEM form, fit and function and availability are also considered priorities, respondents say.
Sales and gross margins have remained steady throughout 2011, and are expected to stay the same throughout 2012. Most shops report one to two inventory turns in 2011, with the same expected going forward.
The Internet is not much of a money maker for shops, with 85 percent reporting they make no product sales online.
METHODOLOGY: The Aftermarket Business World Independent Shop Product Study was fielded to readers of sister publication Motor Age via email. Survey results are intended to show general market trends, not statistical certainties, as results were garnered from a small sample audience.