Denver—Aisles upon aisles of engine and transmission parts and powertrain components fill Allstar Automotive’s warehouse. The shelves contain a huge variety of rebuilt automatic transmissions and transfer cases, torque converters, and new and used hard parts that have proved to be a winning combination for Bret Plue, who co-owns the business with his wife Leigh Plue.
“With the poor economy, people are fixing their old cars,” Bret Plue said, adding that many are choosing to repower their vehicles with remanufactured aftermarket transmissions. Having rebuilt units in stock and wholesale parts readily available in the 19,000-square-foot warehouse ready for rebuilders and repair shops helps get customers back on the road quickly, he said.
In some cases, Plue said, his units can be 40 percent less than a dealership’s, an attractive alternative that comes with a three-year, 100,000-mile warranty.
Although business is good, it’s still down significantly from last year, Plue said. “You have to work harder and compete with price.”
Plue said he’s come a long way from his beginnings in 1997, when he and his wife started the business with $200. Today, Allstar services both retail and wholesale markets, and sells many used engine parts online, a market he said is underserved.
There’s a big void on the internet for used engine parts, he said. “It takes a lot of manpower to dismantle, clean, inspect, and magnaflux cylinder heads,” he said, adding that they sell plenty of camshafts, intake manifolds, timing-belt covers, and engine blocks online.
Without capable employees, Plue admitted that their business wouldn’t be where it is today because of the skilled labor required to dismantle, inspect, and rebuild transmissions.
“My employees are a huge asset,” he said, adding that Allstar employs 12 people. “Without qualified people, it’s hard to have a viable business.”
Jerry Robinette, Internet sales manager, oversees online engine part sales, Plue said, while Eric Umberger, engine teardown foreman, with more than 20 years of experience, processes the engines as they come in.
Michelle Brooks, the general manager of part sales, has more than 20 years of experience with soft and hard transmission parts, Plue said, including experience with transmission parts supplier Axiom.
Heading up the rebuilding department is 30-year veteran Jeff Weaver, who tests all the rebuilt units on a SuperFlow transmission dyno before delivery, Plue said.
Since about 25 percent of Allstar’s business is retail, he said he’s constructed a single bay in his warehouse for installations, a service Allstar began offering when it moved into its current location a year ago.
Although Allstar does cater to a retail audience, Plue said its main focus is on the professional installer; even a defunct Chrysler dealerships that are now operating as used-car lot has become a customer.
Having remanufactured transmissions, transfer cases, and most parts in stock, ready for same-day delivery, is what wholesale customers want, Plue said, adding that Allstar mainly focuses on serving Colorado, Utah, Nebraska, New Mexico, Wyoming, and Kansas.
Plue said his rebuilding department focuses on domestic four-wheel- and rear-wheel-drive pickup truck and SUV units, which include Dodge diesel, Ford diesel, and GM applications.
New surplus units are also occasionally purchased and warehoused for future sale, he said. Typical rebuilt units in stock include Dodge 4748RE and 46RE, and Ford 4R100, and other specialty transmissions can be rebuilt on request, he added.
“You make your money when you buy inventory, not sell it,” Plue said, adding that 2009 model year transmissions can be bought today, warehoused, and sold seven years from now at a premium when they’re in high demand. “If you don’t buy today thinking about the future, you can miss the boat.”
Having an ample supply of transmission cores available for rebuilding is a must, Plue said, adding that Allstar has more than 14,000 in stock. A combination of purchases through salvage yards and other transmission-focused businesses are the best sources, he said.
When inventorying used parts, Plue said that if the parts aren’t at least 80 percent new, they’re scrapped. “If we wouldn’t use it in one of our remans, we won’t sell it,” he said. “Our big plus is clean parts, clean shop, and clean equipment.”
Another advantage for professional installers is that they can purchase rebuild kits and needed hard parts from a single source with a single phone call, Plue said.
Two major brands Allstar carries are Sonnax and Transtar, along with their Recon torque converters, he said. Those parts are sold with an Automatic Transmission Service Group (ATSG) manual, which makes the rebuilding process and installation easier, he said. “More and more garages are tackling this type of work.
“Without wholesale customers, I won’t go anywhere,” Plue said, adding that he intends to service them well to ensure the growth of his company.
In the near future, Plue said he will add manual transmission rebuilding to Allstar’s offerings, as he seeks to increase distribution through jobbers across the mountain region.
