Auto Service World
Feature   July 1, 2000   by Auto Service World

MARKET FEATURE: Top Five Profit Tips

1.Focus on new applications and premium products. Since most garages are using oil and filter changes as a traffic builder, popular filter numbers are extremely price-sensitive. Newer applications and specialty filters are less prone to this commodity treatment.

2. Focus on service. Even with the price sensitivity of popular numbers, a tech would rather have the filter now than wait, even if he leaves a few pennies extra on the table.

3. Focus on higher-profit filter categories. Air filters, particularly the newer applications as well as cabin air filters and fuel filters, are changed less often, turned into promotion items less often, and neglected more often. This spells profit.

4. Pay special attention to the rarer applications. It may be worthwhile to source from a number of suppliers. You don’t want to turn your offerings into a series of short lines with no consistency, but there may be some competitive advantages in favor of plugging in the occasional addition outside your normal suppliers.

5. Always offer the first line first, and the second line only when asked. The market may be forcing you to carry the second line, but it can’t force you to lead with it.

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