Kevan Wooden, Chief Commercial Officer, LKQ Euro Car Parts: IAAF Blog – Third Edition

Supporting the aftermarket through the cost-of-living crisis
A recent poll by the Motor Ombudsman confirmed much of what we already know.

The cost of living crisis continues to bite – and garages are feeling it.
Every day, people have to make difficult choices. With rising prices on essentials like food and energy – not to mention car parts and consumables – is it any surprise we’re seeing vehicle servicing and repair take a back seat for some?
After all, there’s no law to say you have to service your vehicle on time.
The immediate concerns for garages are two-fold.
There’s a potential shortfall in work volumes, and costs are going up.
It’s times like these when the big players must step up and support.

Striving for efficiencies

As market leader, we’re in a position to keep investing in the services we offer, to deliver benefits for our customers’ businesses.
We want to be easy to do business with – and that means ensuring the right part, first time, every time, with accurate and efficient ordering and paperless deliveries, to keep costs to a minimum.
To give an example, we’ve enhanced the service we provide through our trade website, Omnipart – prioritising online orders to encourage garages to go digital. Doing so saves time in the workshop and keeps their phonelines free for bookings and enquiries.

Protecting work volumes

Broadly speaking, in the current climate, we can put motorists into three categories.
With those who can carry as normal with their SMR requirements, the focus should be on upselling extras – such as air con servicing, or brake fluid changes. The key is using simple tests to demonstrate there’s a need. That’s what makes for a compelling upsell.
Next, there are those customers who would ordinarily take their vehicle back to the dealership for a service, but who decide to drop out of the dealer network in search of something more affordable.
There’s a real opportunity for independent garages to impress here – and to win and retain new customers.
A credible online presence is an important starting point for new customers doing their research – and quality should remain a priority throughout the entire process, from slick, accurate quoting and invoicing, to a comfortable, clean waiting area, and the standard of the service itself.
Finally, there are those drivers tempted to drop out of the aftermarket altogether and defer the work needed on their vehicle.
To help, just as we’re communicating about the support we’re offering garages, we’re encouraging garages to do the same with their customers.
A big part of the reason why we offer a range of brands in every category is to help garages and their customers choose the right parts for the job, at the right price for them.

Action to take now

Buying from aftermarket suppliers that offer a range of brands (good, better or best) is a good option in the context of garages’ rising operating costs.
But whichever brand of parts garages decide to invest in, it’s only a good idea if the work is profitable.
And with peak demand for MOTs fast approaching, the time for garages to review their pricing – which includes their labour rates – is now.

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