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Motaquip

Bringing Motaquip parts to garages

Due to the performance of my parts selling, Peugeot reached out to me to try and get me to help them sell their Motaquip parts.

DATE

2016

COMPANY

Motaquip

INDUSTRY

Car Parts

Introduction

Sukhpal Singh Ahluwalia helped me create a marketing strategy to spread word of Motaquip parts on behalf of a Peugeot dealership group. I also handled sales of 2500+ parts and assembled a team to further improve an automated parts uploading software.

2500 parts+

– Had 2500 parts listed within one month.

Closed deal with dealer group

Dealer group had 7 locations. The deal was that I would market and bring in the sales, they would handle the logistics, shipping and storage.

Got expert advice

The founder of EuroCarParts helped me create a marketing strategy to spread word.

Improved parts information

I used the same system I had designed with my developers to research all the correct data. This meant it would be easier to upload 2500 parts all at once.

Back-story

Upon blowing away the competition with my online sales in parts. A Peugeot dealership group took notice and actually approached me in relation to their brand new parts they had in stock.

These were Motaquip parts.

I had previously been selling my 700+ parts to other garages, car salespeople and individuals. So it was only natural that a Peugeot dealership also saw all of the listings I had.

The Dealership group had about 7 huge showrooms from what I can remember. They had a parts department attached to every dealership.

The premise was simple. The manager said he had about 2500+ Motaquip service parts in stock that he needed help selling. These parts were all geared around general servicing and maintenance. Parts that would fit on many different vehicles and be able to get lots of sales. There is a big demand for servicing parts.

He said that Peugeot HQ have certain parts sales numbers they need to hit every year. He said that if he didn’t hit a certain target then his dealership group wouldn’t be entitled to a rebate. Meaning he would be losing out on a lot.

So after seeing my online adverts, he wanted me to help sell his inventory on behalf of his Peugeot Dealership group.

Situation

A contact from a major Peugeot dealership reached out to me

I had some quite good success with selling Peugeot parts online. In fact I had managed to help out a dealer and get rid of £40,000 worth of parts in a week. In a year that’s £2 million worth of parts.

It was the performance of my ads and how widespread my parts listings featured, beating the likes of EuroCarParts themselves. That got the attention of the higher ups in Groupe PSA.

They first contacted me to see if the parts were legitimate. When I established the parts were fine and from a Peugeot dealer. The person I spoke to knew of another Peugeot dealership who I could help out. They said the dealership would reach out to me.

The Peugeot Dealership reached out to me.
The guy also had seen my adverts and was impressed. He said that he had lots of Motaquip parts and other Peugeot parts that weren’t selling as quickly as they liked. In fact they were desperate as hell to get rid of them.

They said they had quotas from Peugeot to sell “x” number of parts per year. And if they didn’t reach a target, they wouldn’t be eligible for a rebate or something. They would effectively be losing money If they didn’t reach their goals. No one wants to lose money.

They asked if I was interested in buying their parts
It was clear they wanted to do anything to reach their sales targets of motaquip parts. Of course I refused. I’m not a fool. I didn’t want to waste money on purchasing the stuff they couldn’t shift. But I came up with another idea.

I made a deal to sell the parts on their behalf
So instead of me buying them up front. I would market the parts. Then the fantastic Peugeot dealership would ship them out and service the customer. Splitting the sales revenue with them.

About Motaquip

Motaquip is an aftermarket supplier of parts established by Peugeot in 1981. Their head office is now based in Nuneaton, UK, with all parts distributed from a warehouse in Luton, UK. DNA. I was tasked to sell these Motaquip parts.

Motaquip had excellent parts data through E-CAT
Purpose-built. The parts data had been prepared and maintained by industry experts and validated by a TecDoc’ A’ rating. The system offers full OE and competitor cross-referencing across all makes.

E-Cat would make uploading parts quicker
I would have to spend less time researching the information for each part. It could all be given to me on a silver platter.

Product images were already there
I would not have to spend years creating my own photographs. I could use the professional images Motaquip created.

Hindrances

– Ensuring the parts could be sent safely, without damage, so they arrive on time at the customer’s door would be a challenge. The parts would also have to be sent at the right price. It’s easy to overpay. Doing a deal is the challenge, so you’re making money.

– 2500 adverts would need to be created.

– Each part needed photos, vehicle compatibility information and parts compatibility information attached to them.

Challenges

If I was going to sell parts on behalf of the dealership. I needed to sell enough of them to make them trust me. I also needed to maintain the professionalism that their group had built up over the years.

Selling enough parts would be difficult.
I would have to be clever about advertising to be able to sell enough parts at once to warrant getting into this venture. Advertising costs money.

I wasn’t the only entity selling parts.
There were several other companies out there trying to sell the same parts. Not the same brand, but similar parts that fit the same design. Luckily their branding was not amazing. I would have to use the art of story-telling and marketing to get people to buy from me, rather than these faceless corporations.

Logistics would be hard.
Processing the orders so Peugeot knew what was going on and to make sure they did it promptly would be a hurdle.

Actions

Here’s everything I did to get the results I was aiming for.

Closed the deal with the Peugeot Dealership Group

He had 2500 unique parts that could be sold.
Each part had a unique parts reference number.

The Peugeot guy said he would let me have the items from him at cost price. However I made a different deal with him.

The deal was that I would market and bring in the sales, they would handle the logistics, shipping and storage.

Then we would split the profits. I thought 50-50 was fair. 

When orders came in I sent it to them

Whenever an order came in, I had to print off the invoice and then send it over to the Peugeot place. Then they would deal with the customer and ship it off to them.

So it was a gamble that they would do it right, but they were Peugeot, they must know a thing or two. But it wouldn’t be my name attached to the branding of the boxes. A small price to pay for easy revenue to be generated.

Getting parts information correct for adverts

I used the same system I had designed with my developer to research all the correct data. Based on the parts numbers Peugeot gave me. This meant it would be easier to upload 2500 parts all at once.

Used manufacturer photos to begin with

Taking 25 manual photos of 2500 products was not feasible at the beginning. So instead I started by uploading generic photographs, those which were the official Peugeot Photographs and “exploded” pictures of the parts, found in automotive software.

Then gradually more and more photographs were added which were the same as my colourful system. The same kind of photos I used when selling the 900 parts beforehand.

However the parts were selling without the need for the colourful photos.

Gradually expanded advertising and number of parts for sale

I did an initial trial for maybe 100 parts at once. Choosing those parts that would sell quite regularly. Parts which would feature on the most number of available vehicles in the country. Things like cambelts and brake pads.

In the first 30 days, every item I listed did sell.

But the advertising for 100 items was barely anything. In fact it might have been free to list them.

So then I took a gamble and decided to expand as fast as I could. Uploading maybe 400 parts a week extra.

I saw this did in fact increase the number of sales that were happening but the advertising costs were also increasing dramatically.

I then decided to gamble and thought I would just sell them all at once.

I was selling many parts per week. All I had to do was pay for the advertising and keep track of the expenses vs revenue.

This gamble of selling all the parts at once had many benefits.

The plus side is when you are advertising 2500+ parts. There is an economy of scale. It costs the same amount per month to advertise as if you were selling 400 parts. As after a certain point you can list an unlimited amount of parts. But if no sales come in, it’s expensive. Very expensive. That was the risk.

Also I had to take a risk that Peugeot on the other end would be able to deal with the number of parts orders that would come in. I did tell them about it beforehand. They agreed and said go ahead. See if you sell any.

Well I did just that. We sold a few items.

– The value of parts varied between £10-£120. Some were a little higher.

More actions

– Established a 50-50 profit split with Peuget dealership. I handled marketing. They handled shipping.

– I reached out to my list of repair garages and breakdown companies to see if I could convert them into buying any of my parts. I realised I didn’t have enough stock or could act quick enough to service these people.

– Saw that most businesses require same day morning service., Usually from local parts suppliers within 5 mile radius.

– I automated uploading of parts using the same system I had created from my other parts selling ventures.

– Started with 100 parts. Then gradually increased to listing 2500+ parts. The spreadsheet was too big.

– All I did was press a few buttons. It wasn’t difficult.

– I also created a website, so customers could order directly from me. Eliminating any fees.

Results

– Due to the performance of my parts selling, Peugeot reached out to me and we closed a deal for me to sell their parts.

– Had 2500 parts listed within one month.

– Each part had an average value of £15.

– Sold about 170 parts a week. 15 x 170 = £2550 revenue per week.

– In a month turnover would equate to only £10,200 per month. Limited the amount of items that were sold due to manpower. Could sell more if I wanted to.

More results

If I really wanted to branch out into storing thousands of parts. I would then effectively be competing with the biggest parts suppliers. Both Peugeot themselves and EuroCarParts.

– 2500 parts listed within one month
– Each part had an average value of £15
– Sold about 170 parts a week
– Sold 15 * 170 = £2550 a week
– In a month revenue would equate to only £10,200 per month.

I was forced to limit the amount of items that were sold due to manpower. Could sell more if I wanted to. The number of sales being generated were fine however the time it took to process the different orders meant that other more profitable ventures were hindered. It would be better to sell one vehicle for £1000 profit, than mess around dealing with 200 parts orders.

I paused the selling of these Peugeot parts as I wanted to see if I could obtain similar parts myself and make much more profit per sale. My advisor said China was a great source I should check out.

Something Memorable

The plus side is when you are advertising 2500+ parts. There is an economy of scale. It costs the same amount per month to advertise as if you were selling 400 parts. As after a certain point you can list an unlimited amount of parts. But if no sales come in, it’s expensive. Very expensive. That was the risk.

GLYN TAYLOR-WILLIAMS
Sales & Customer Service, Motaquip Parts

Evaluation

It was quite good having a main Peugeot dealer group reach out to me because my adverts were better and performing higher than the competition in the online marketplaces.

The number of sales being generated were fine however the time it took to process the different orders meant that other more profitable ventures were hindered.

It would be better to sell one vehicle for £1000 profit, than mess around dealing with 200 parts orders.

I paused the selling of these Peugeot parts as I wanted to see if I could obtain similar parts myself and make much more profit per sale. Rather than give it all away to someone else. I eventually discovered something that could work. Notably importing items from China. Something everyone hates.

I could restart the selling of the Peugeot parts if I wanted too. But I would effectively still be selling something with the brand of another company in it. Relying on others to package it up and ship it out.

If I wanted to expand even more, it would mean getting a bigger warehouse and then storing things. Maybe paying out another £30,000 a year in staff. This could be achieved but the profit margins are too slim for this particular branch of business to really explode and go somewhere huge.

It would be fine as a side-business.

If I really wanted to branch out into storing thousands of parts. We would then effectively be competing with the biggest parts suppliers in Europe. Both Peugeot themselves and EuroCarParts. Who’s have millions of pounds worth of buying power. They get items for next to nothing. They make real money on each transaction.

To really get anywhere in the parts business I’d have to go to China and/or acquire other parts businesses and serve the local customers. Those who need parts within an hour. Where time is critical. Not competing with the online sector, where price is the main thing people look at.

Having a range of servicing/repair garages buying from you consistently is a much stronger business.

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