A key driver of sales for your website is pricing. How you price parts and accessories online will depend on your business’ goals. Following these steps will help you price your parts and accessories so you can meet your online objectives in a long-term and sustainable way.
1. Define Your Goals
Your online customers can easily compare your prices with your competitors’ with a click of the mouse. However, having the lowest prices does not mean you will be the most successful dealer. We understand that it’s important to recognize that every dealer defines his or her success differently. Before you lower your prices, consider defining your goals and how pricing your parts and accessories plays a role in reaching them.
2. Understand the Combination of Volume and Gross Profit
Is your goal to be a volume player, even if this means pricing competitively and maintaining lower margins? Some volume players receive support from OEM-sponsored financial incentives. If this is your case, then pricing your products very competitively is the right strategy for you. However, keep in mind that a large number of orders means allocating more resources to fulfilling those orders on a daily basis.
Do you consider your website a natural extension of your existing parts counter? If this is the case, you have more flexibility with your strategy and can increase your prices, within a competitive range. You might sell less volume, but your online parts store will be more profitable per order and require fewer resources. Also, the SimplePart Client Services team can work with you on solutions to keep prices higher, but still be competitive in the market. For example, you can run marketing promotions, or optimize your prices to offer free shipping.
3. Use Pricing to Reach Your Goals
Pricing your parts and accessories is important, but there are other tools you can use to meet your objectives too. Shipping rates and advertising spend can also help you sell more. Keep this in mind as you work on your pricing strategy. Just lowering prices on your parts and accessories may not always be the best course of action, but our Dealer Strategy team at SimplePart will tailor a pricing strategy according to your goals.
4. Leverage Existing Control Panel Reports
Our customized reports coupled with our team of experts can help you analyze and improve your online performance as well as track how effective your pricing strategies are.
Here are some reports you should be monitoring on a regular basis:
The Gross Profit Report (by Month) - Located in the Reports section of the Control Panel, this report highlights key metrics to measure your success.
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*Cart C/R (Cart Conversion Rate): The percentage of people who are viewing their cart, most likely after adding products to their cart.
*C/R (Conversion Rate): The percentage of people who, after landing on your website, place an order.
Every dealer and every brand is different, but as a rule of thumb, you should strive to at least 8.2% for Cart C/R and 1.25% for a C/R.
The Ranked Performance Reports - The Dealer Strategy team uses these reports, including the Pricing Matrix report, to help dealers visualize where they stand in terms of pricing compared to similar dealers. By leveraging these metrics, you can quickly assess if your pricing and shipping are competitive.
5. Implement Changes
Once you have a good understanding of where you are, you can work with SimplePart to organize your pricing strategy. Again, you do not need to be the “lowest priced dealer” to be successful. We can help you optimize your pricing to meet your goals.
6. Monitor Results
It’s very important to monitor your performance regularly and make adjustments accordingly. Changes in your performance will not be immediate, which is why we generally recommend reviewing your data every two weeks.
For additional questions, contact our Client Services Team, available to you 24/7. You can contact us by email at support@simplepart.com, or call 1-888-843-0425.
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Pricing Tiers: How to Price For Your Market
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When you’re revising your pricing strategy, it’s essential to take the time to figure out proper pricing for your parts and accessories store. It can be difficult to find the balance between profit and volume for your dealership, while still staying competitive in the market. This is where SimplePart’s easy-to-use Pricing Tiers can help.
In the SimplePart Control Panel, there is a Pricing selection under the Settings menu. From here, you can set the various pricing tiers and matrices for your dealership. An example is shown below:
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It is possible to set up multiple price tiers by product type, having different ones for parts, accessories, and maintenance items:
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The Wholesale Pricing Module
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The Wholesale Module is an optional add-on for your SimplePart site which provides real-time discounted pricing for certain customers when they browse your parts website. This is only visible to your customers who have an approved Wholesale Login.
In order for customers to get a Wholesale Login, they must first request one. Once you have the Wholesale Module enabled, this screen can be found in the footer of your site under the name “Wholesale Login”. The Support team can help you navigate the sign-up process.
Custom Item Pricing
One compelling feature of the Wholesale Module is the ability to create custom pricing for items in specific accounts. This can be especially helpful if you have an IRF (Independent Repair Facility) that frequently orders the same products from you and you’d like to offer them a special deal.
By clicking the Custom Product Information text in the header, you can enter the part number in the “Edit Product” field. Then, you’ll be able to enter custom pricing for this specific product.
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Tip: We recommend editing the cost Markup value rather than the actual cost.
Orders Screen
When you view your Order History, Wholesale orders will be marked with a (W).
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If you have any questions about the wholesale pricing module, how customers can request an account or how to add it to your Control Panel, check out our knowledge base article or contact us at support@simplepart.com or 1-888-843-0425.
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Implementing Competitive Pricing with the OMNIPARTS platform
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OMNIPARTS Automotive Parts Online allows the Nissan customer to shop for all of the vehicles in their garage. These parts are designed to fit vehicles across a wide spectrum of makes and models, so implementing a competitive pricing strategy with OMNIPARTS can have a fantastic payoff: consumers who purchase these parts benefit not only from backed by Nissan North America quality that they trust, but from savings as well.
This unique aspect of the Nissan Parts & Accessories Online Program can allow dealers to extend their reach with their customers–and create further opportunities for loyal customers.
If you’d like to learn how you can highlight OMNIPARTS as a part of your pricing strategy, contact us at support@simplepart.com
or 1-888-843-0425.
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Ready to take advantage of these features and other tips to help you boost your sales? Partner with SimplePart by reaching out to our Sales Team at sales@simplepart.com.
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