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How to operate a repair shop?

Date: Aug 21, 2018

In the past few years, in order to speed up the market, upstream component manufacturers have developed a large number of downstream dealers, lacking control over the second-level or even third-level dealers under the dealers, and overall reduced the threshold for auto parts dealers. The agency system of many accessory brands and categories criss-crossed, making the boundaries of auto parts dealers very blurred. A first-level agent for a lubricant brand may be a secondary agent for a tire manufacturer. It is also operating a repair shop at its own expense. This is a common phenomenon. The large increase in auto parts dealers has intensified competition in the industry.
How to operate a repair shop?
Due to the jagged “selling” traffickers, professional dealers can only focus on the price, resulting in lower and lower service value, lower professional service levels, and higher price transparency. The space for profit will become smaller and smaller, and the auto parts dealer will eventually become a porter.
  The flattening of channels is a strategy that all upstream manufacturers want to adopt. The question is whether it is worth doing. If the dealer's distribution system can help upstream manufacturers to reduce operating costs and stabilize market share, upstream manufacturers can not have to do anything to please. Why have a large number of manufacturers began to shrink channels in recent years, and even spent a lot of investment in self-built channels? The reason is that the channel efficiency of the domestic automobile aftermarket is too low to reach the goal of saving transaction costs and consolidating market share.