By Sandy Blalock
One of the most common topics of discussion within our industry is how to compete and grow in today’s professional automotive recycling business sector. With inventory and everything about your company readily available online, there has to be something that can help recyclers grow and set them up for success without having to compete in the proverbial race to the bottom.
I would like to share some ideas with you that not only I, but many successful businesses have utilized over the years. There are many levels of competition, just make sure you are entered into the actual race you want to win and stop trying to compete with those companies not providing the quality service and parts that are important to your business model and define who you are.
Look at your customer experience from their point of view. This works for both wholesale and retail business models. Are your products and services tailored to meet your customers’ and market needs? You must know this in order to shape your business for growth and profitability.
Make sure to enhance your customer experience by training your staff to provide superior customer service first and foremost. High-level customer service should be your target in all you do. Have you looked into potential loyalty programs for your best and repeat customers? How about a rewards program for a customer referral?
Differentiate your company and brand by clearly communicating the unique value propositions that set your company apart from others. How does your company stand out from your competition? Do you have a compelling story that resonates with customers and potential customers? You must always be innovating to offer something distinctive that continuously woos customers to return and refer others.
If you maintain high-quality parts and service that includes a strong quality assurance process that ensures consistency, it will put you in the premium position in your target market area.
I cannot say this enough – and I am tired of hearing “what do people expect – it’s a used part” – please focus on quality and install-ready parts. If you maintain high-quality parts and service that includes a strong quality assurance process that ensures consistency, it will put you in the premium position in your target market area. It has never been more important to stop going after customers who do not value quality, superior service and value over price. Just look around you and see all those companies that are no longer in business because they took the race to the bottom in pricing right out the door of their businesses.
Make sure you are leveraging technology by investing in a strong online presence starting with your website and social media presence. I think our industry has been strongly engaged when it comes to technology, and we know that our digital presence is more important now and will grow every day as market demand increases. If you have not started automating to streamline some of your operations, no time is better than the present to begin.
I will have some more to share in my next article before I close out my tenure with ARA and begin my new journey back to my beginnings of working at the state level where I think I can have the most impact for our industry. If you have ideas on what areas I can help within your state, please reach out to me.
In the meantime, by focusing on the strategies and ideas I have shared with you, auto recyclers can compete effectively in any market while maintaining ambitious standards and, most importantly, profitability.
Stay tuned!
