Keeping costs down is essential for any heavy duty repair shop. Considering parts play an essential role in what you charge your clients, that’s a cost you need to minimize. Buying in bulk is one way to do that. It’s also useful to know how to negotiate better parts prices. Start the process with knowing your business and streamlining it. Then, do a little research to arm yourself with vital information.
1. Use Your Parts History
Knowing your shop’s history can help you negotiate better parts prices. When you know what brands and types of parts you use most, you can make informed purchases. Tell your vendors that you’ll be stocking more “A,” “B,” or “C” parts and that you’d like to know what kind of deal they can give you. Also, don’t be afraid to comparison shop or to let your vendors know you are doing so.
2. Trim Your Vendor List
After you’ve found which vendors are open to negotiate better parts prices, trim your vendor list. Cut back to doing business with the ones that give you the best prices and are open to negotiating. This step streamlines your business, too, by reducing the number of companies you do business with.
3. How Research Can Help Negotiate Better Parts Prices
Knowledge is power, and it can help you negotiate better parts prices. Truckinginfo.com points out that the Internet puts a wealth of information at your fingertips. Use it to learn all you can about the newest products, and to compare vendors and prices.
Part of your plan to negotiate for better parts prices is asking for a discount. Occasionally, manufacturers or retailers offer rebates or discounts. Your vendors may make you aware of them, but you can also search for them online. Let’s say your research reveals a vendor not on your list has better prices on parts you need. Take that information to your vendors and ask them to meet or beat the lower price.
4. Be Sure You’re Comparing Apples to Apples
Automotive experts advise that when you negotiate better parts prices, it’s important to compare apples to apples. For example, it’s possible to get a great deal on cheap bearings, but it’s not likely you’ll find high-quality bearings at a cut-rate cost. Learning about brands and quality levels is part of research. That information will come in handy when you haggle.
Finally, in the end, research, information, and streamlining your business can help you negotiate better parts prices. Minimizing that back-end cost will put you ahead of the game and pump up your bottom line.