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Are we seeing the “Home Depot” effect in the Auto Parts Industry?

Joe Marconi
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LynxStarAuto Contributor

LynxStarAuto

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The Carquest acquisition only really helped us (the repair facilities). They now are the biggest distributor for the commercial segment, and added other part houses to the mix like Worldpac. Advance Commercial is giving Napa a run for their money. That is always a good thing, because competition keeps ppl honest.

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JimO Collaborator

JimO

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Joe's analogy is correct. The Advance acquisition of CarQuest came early to my area. The change was NOT good, no benefit only detriment. The Advance DIY business model was apparent to me based on the following: 1) Increased cost and list pricing. 2) Elimination of parts required by us but not required by the DIY's. 3) Print and radio spots offering "no charge" code reading, battery tests and battery replacements which not only placed Advance as my competition but also degraded the knowledge, equipment and effort required to diagnose a modern vehicle to a mere "no charge" accommodation.

 

Now the good news concerning Joe's last sentence about the big guys not changing. On Friday afternoon I received a call from a member of a business investment research firm who was hired by a group of investors to review Advance Auto Parts as a possible investment opportunity. This gentleman contacted me and reviewed my feelings about Advance because in the past I had posted comments about Advance on Auto Shop Owner. We need to know that our comments, praise or criticism, are being viewed by other people and some of them are Wall Street people. We never had an independent public platform that could reach so many people before. I am ashamed to say this but I never talked about business with shop owners in my immediate area no less the amount of people this forum reaches. We need to talk, we need to realize and understand that we are all facing similar problems and maybe together with careful consideration and open discussion we can make a change. Thanks again Joe for another great post.

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alfredauto Experienced

alfredauto

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The dealers in my outlying areas are becoming very commercial friendly. They see the opportunity. They come down from 100 miles away every day so we can put their parts on cars they aren't going to normally see, I like buying from the dealer the parts fit right and don't advertise free diagnosis.

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
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      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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