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Iowa dealership commits to wholesale business, increases customer service options
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Urbandale, Iowa--"The problem with the automotive industry right now is that everything is a challenge," said Mike Hopper, parts manager at Stew Hansen Dodge Jeep. "It is a challenge for the independent garage, and it is a challenge for the dealer, so we have to find a way to make those challenges a little bit easier for everybody."


Hopper said he is trying to do that by making a commitment to his customers. He said his parts department includes an inventory worth $1 million, 15 parts employees, including three full-time drivers and one hotshot driver, along with an outside sales rep.


"With $1 million worth of inventory, there is a pretty good chance we will have common items--our goal is to have what is expected," Hopper said, adding that he covers a territory 50  miles east-west, and statewide north-south. "We have to stay committed to our wholesale clients and get things to them in a timely manner."


Hopper, who began at Stew Hansen 32 years ago, said every day brings up a new wrinkle, largely because parts have become more complex.


Therefore, he said he must also be committed to having knowledgeable counter personnel that know the product. 

 Stew Hansen Dodge Jeep Parts Manager Mike Hopper says he has made a commitment to his wholesale customers by stocking $1 million in inventory and hiring a large, experienced parts team and an outside sales rep.
"When customers call us, sometimes we will know a service tip that a jobber doesn't know because the system that we use tracks TSBs (Trouble Service Bulletins), flags that part number, and we can read it to them or fax it," he said.


Being sympathetic with customers is another aspect Hopper said is necessary to be a good wholesaler. The automotive repair shop owner has a tough road to travel, and we have to understand that, he said.


"When an independent garage has a hoist tied up, they need that part immediately, so it cannot be on part of a route," he said. "So we have one person that just runs hotshots. Sometimes if he is out and somebody needs a part, I will even run it."


It is about becoming a partner with shops, especially the body shops, he said. With so many DRPs (direct repair programs) that want parts at the shop before the car is there, flexibility is key, and parts have to be delivered fast, he said.


Hopper said Chrysler even has a program for headlights, tail lights, bumpers, and fascias in which they will match the pricing on non-OEM parts. Although there is a cap on it, he said in the last eight months, his shop has not missed it once.


Wholesaling collision parts, however, can be a double-edged sword, he said.

Stew Hansen Dodge Jeep has a parts team dedicated to wholesale. From (l.) Wholesale Parts Reps Robert Keeley, Ken Campbell, and Scott Peterson.
"You want them to have everything, but you would like them to use everything," he said. "Return policies have changed with Chrysler, so I don't get a large return allowance. If an insurance company decides to total out a vehicle, I can use up my whole return allowance right there."


Hopper said he used to get $20,000 in return allowance every month, but now he only gets $5,000, and some parts are nonreturnable.


Luckily, he said his wholesale countermen have an average of 20 years of experience, along with solid relationships with many customers, which make informing customers about nonreturnable items an easier task.


"You have to have that kind of relationship with a wholesale account to be able to say something like (that) without upsetting them," he said.


Parts returns were an issue that Hopper said he was running into even with the body shop at Stew Hansen Dodge Jeep -- his largest wholesale account.


He said the 15-member collision shop is a separate entity from the parts department, and it is treated like any other wholesale customer he does business with.

Steve Reben, delivery driver for Stew Hansen Dodge Jeep, pulls a part for delivery. The parts department has three full-time drivers and one hotshot driver.
Hopper said the service department is also growing, thanks to a focus on maintenance and a quick-lube express lane.


Because cars are being built better, he said warranty work was down, so a push was made to do more maintenance work.


The service facility, which employees 23 technicians--works on 120 to 140 cars each day -- a number he said he believes will increase following the addition of quick-lube express lane in June.


Hopper said that previously, oil changes were tying up an experienced technician, so by funneling that work into an express lane, technicians can focus on problems such as brakes and drivability.


From start to finish, the average oil change was taking a dealership 90 minutes, Hopper said, adding that by using the express lane, a customer can be in and out in 20 minutes.


"Instead of an 11-step process, it has also been broken down into a three-step process," he said. "The guy that you bring the car to writes the ticket, dispatches it, and by the time they are putting the oil in, he has the person at the cashier."
Hopper added that the oil changes also include full vehicle safety inspection that includes checks on tire wear and battery condition. 




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