When it comes to routine maintenance, the parts you need are almost always in stock. This is because historical inventory flows allow you to make reliable forecasts regarding parts with fast turn around, ensuring they are readily available when you need them. 

Sometimes, however, a job comes in that requires specific parts, resulting in special orders. In most cases, the special-order parts are ordered, installed and invoiced but sometimes, these parts don’t end up being used. 

Maybe the wrong part was ordered. Maybe it did not arrive in time and you were able to source it elsewhere but unable to cancel the original purchase. Perhaps your customer decided to go elsewhere.

Whatever the reason, special order parts that remain unused are a waste of space and capital.

So, what can you do to turn special order parts into sales?

1. Require Authorization

Prior to placing the order for the special part, require both the service manager and the customer to sign for and approve the work. Schedule an appointment and, if necessary, require a deposit from the customer.

This will increase the likelihood of the customer returning to pick up the part or receive the service. If they do not come back, the deposit will offset the carrying costs and allow you to unload the part for a decreased price if necessary - to be more competitive.

2. Evaluate Its Life Cycle

If the part is for a newer vehicle model, consider keeping it in stock. While it may be awhile before you are able to sell the part, if it is a newer SKU, there is a greater likelihood of you being able to sell the part to a different customer who comes in for similar work.

The downside of this method is it will take up space and increase carrying costs. However, if you can maximize profit this may be the preferred avenue.

3. Reach out to the Manufacturer or Vendor

Before calling it a loss, reach out to the original vendor or manufacturer to find out if they have a return program. It’s often the case that parts can be returned to the manufacturer. While you may have to pay a fee to do so, the fee will likely be lower than the costs absorbed on a lost sale.

4. Contact Local Shops/Reach out to Peers

If a sale to another customer is not foreseeable, contact local shops that specialize in the type of vehicle that the part is made for. It's possible that they would be willing to purchase the part from you at a discounted price or at cost.

Even if they don’t need it right now, letting them know you have it will keep you top of mind if they do require the part at a later date. This is especially true if the delivery time is substantially less than ordering directly from the vendor.

For help unloading special order parts, contact our team today. We can help you find a buyer and assist in implementing processes to minimize lost sales on parts you would not otherwise carry in stock.