Seemingly odd business pairings boost revenue

Do opposites attract? Yin and Yang? Beauty and the Beast? Felix and Oscar? The real issue I’m talking about is not so much how opposites attract as it is about things that pair well together and complement each other. More like Dr. Evil and Mini-Me from the Austin Powers movies.

We are all familiar with the term diversification and how that applies to us. Being a traditional jobber is great, but if you add hydraulics, paint, ATV parts and supplies, or service to the normal offerings, we become more robust and less dependent on the traditional fare of auto and truck parts.

It’s agreed by everyone that diversification attracts more potential clients, but I say that the bulk of new potential clients are still within the framework of all-things loosely automotive or service related, but harder to attract. What I propose is something outside the box. If you have the room, talent and desire to attract a totally new set of customers, you are going to have to offer something a little different than normal.

I’m not proposing that you add an ice cream parlor or a donut shop, although we all love those sugary treats. The idea of one of my greasy-fisted techs or myself serving a banana split produces more health hazards than potential profits. Here’s a list of a few businesses that I’ve added to my automotive parts business.

• Truck and Trailer Rental /Dealer

I’m not endorsing one over the other, but there is some easy money to be made renting moving equipment, car dollies, lowboys and enclosed trailers. Most of these add-on businesses require some space for parking the equipment, a computer with Internet capability and someone who knows a good amount about hitches. It also will require a little training as to how the whole system works.

Most of these are commission-based programs where all advertising and brochures are provided free of charge. We currently participate in a dealer program like this, so here are some of the good things to expect. First and foremost, commission every month with no additional overhead. Increased hitch sales along with all towing accessories. An add-on business like this will attract many people from all around your normal customer base, even further than your normal diametric reach, and most of these people have never been in your store or knew you existed.

Plus, new people moving to the area get their first automotive business interaction with you. Many times yours is the first local business they will visit. This can be a real opportunity to shine. There are a few bad things to expect, most of which are customer service issues. They can be cumbersome transactions at times, but with a little savvy and salesmanship, all are easily overcome.

• Equipment and Tool Rental

There are a myriad of ways to do this. You can rent equipment you own, such as hand tools, or you can partner with an equipment rental company to supply a rental inventory of equipment and accessories that would attract contractors, builders, DIYers, county/state agencies, local utility firms or companies that use a tremendous amount of things like man-lifts, fork trucks and excavators. They don’t have the budget to buy them, but they rent this stuff like crazy. Again, all commission based plus you’ll get the ability to go after some fleet accounts or other customers you may not already attract.

• Pre-Fab Outbuildings and Garages

This usually requires a good deal of extra or unused space, but again requires no cost of inventory or additional overhead. All commission based, and these types of sales yield large commissions. If you have the extra space, why not use it?  Now I know you are asking yourself, what does a pre-fab barn have to do with automotive? Well, you’ve also got pre-fab garages to park vehicles in, and if it’s not a vehicle, maybe they’ll park a boat, an ATV, lawn mower or tractor.

Many of us already have diversified into supplying parts for these market segments, now we can provide a place to store them. We were absolutely astounded when we first offered these items as to the response, and how many we sold right away. Every customer of these buildings and garages was a customer we had never seen before, and most of them have been repeat customers.

I realize that some of these ideas are a little non-traditional. But they don’t compete with our core business, which is the dealers and installers, and they sure attract a lot of retail and fleet business. Unlike opening a used-car lot, which many of our customers have or is the central business of a large segment of our automotive wholesale accounts, these items compliment our core business without conflict. They also create a lot of new foot traffic and broaden our ability to do the one thing we all like the most: make money with as little overhead as possible.

Granted, if you do some of these things, you will be the talk of the town. We offer all three of these businesses, and regardless of appearances, we sell more automotive product as a result. I can sell you the part to fix whatever you need due to normal automotive diversification. Now, I can rent you the tools required. If you can’t fix the car/truck/lawnmower yourself, I can provide you a method to haul it to someone who can. Also, if you want a garage or building to stow your cars, trucks, boat, ATV, lawnmowers or other toys, I’ve got you covered there also. Not only are they related, they are uniquely related.

I’m not suggesting that a seemingly odd addition to your automotive parts business should become the focal point of what you do. I am encouraging you to open your eyes to the fact that regardless of the obvious things for what you are known, you are chiefly in the business of making money.

Will there be bumps in the road in one of these ventures? Guaranteed. However, one of those bumps in the road may cause you to hit your head just hard enough on the roof of the car to knock the blinders from your eyes and see what’s around you: More opportunity to make money without losing your identity. What’s so odd about that?

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