Power Selling Through DPT

Most dealerships have some idle parts inventory. Parts are typically considered idle when they have not been sold in the last 12 months. Industry statistics suggest that if a part has been sitting on your shelf for 12 months, you only have a 10% chance of ever selling it.

Parts Inventory can become idle in many ways:

•Manufacturers have done their part as well. They are constantly changing part numbers and are lowering return reserves or excluding parts that can be returned.
•Your DMS can even contribute to the problem if it is not configured correctly. Do you use your suggested order report? Is it helping you or is it part of the problem?
•Maybe you have done a decent job of managing your parts department, but the changing market conditions have you guessing about which parts to keep in stock.

Regardless of what caused your problem utilizing the Dealer Parts Trader’s Power Broker tool can help get you regain control and recover cash flow.

Why would I want to sell my idle parts inventory at a discounted rate?

Most parts departments can turn their inventory over four or more times per year while making a gross profit of at least 25% or more. Why would you want to tie up your cash flow on assets or parts that are not contributing their return on investment? How can the Dealer Parts Trader Power Brokering Tool help me?

Dealer Parts Trader has a network of buyers that are interested in purchasing your idle parts inventory. The process begins with a DPT staff member helping you extract your list of idle parts out of your computer system in an electronic format. The list of your parts is then imported into our Power Brokering Tool to determine how much opportunity you have for selling parts.

It is typical for DPT to be able to sell 35 - 50 % of the parts that you have available. There is no charge to you for the evaluation process. If you choose to sell your parts, it begins a 4 stage process that we call an offer. You will be issued a user name and a password to login to our website.

How does the Power Brokering program work?

Dealer Parts Trader created a web based, Power Broker Tool to create opportunities for you to buy parts at discount. As a buyer, DPT would obtain a list of parts that you purchase 6 or more times per year (this can be customized). This is done automatically if you have submitted a data extraction form or by your parts departments submittal.

Once we have your data, we import it into the Power Broker Tool and begin to make buying opportunities for you by comparing your list of desired parts with a sellers list of idle inventory, we then create an offer. The minimum offer is normally $200.00 if the two dealerships are in a similar region (we want to keep shipping cost minimal for the seller). Most offers are around $2,000.00 at the discounted price. We can customize your offers based upon a dollar amount, regional locations, or number of parts in the offer. Please do not be afraid to ask if you would like a specialty taken when working with your account.

We always send the offers to the sellers first. There is no reason for you to consider buying parts that are not available or that the seller does not want to sell. The seller does a quick bin check to verify the parts are in stock and in sellable condition. The seller also considers how far the parts are going to be shipped when deciding what to sell.

After the seller has reviewed and approved the offer, you receive an e-mail telling you that you have an opportunity to buy parts. You have to login into our website and review the list of parts on the offer. Depending on your current qty on hand, you should be interested in buying most of the parts on the list. You select the parts you want and approve the list. The seller then boxes up the parts, creates an invoice and mails them out to you. You receive the parts in and check them for accuracy and condition and issue a check to the seller.

In most cases the parts that are on these offers are parts that you already have 1-2 or more of on the shelf. Therefore, there is no sense of urgency for you to receive the offers in the next 5 days. You have the luxury of replenishing your fast moving parts at substantial discounts.

Instand Questions & Answers:

What is the Power Broker discounted rate?
•Power Brokering has a discounted rate of .50 cents on the dollar. Simply put; HALF PRICE.

How does Dealer Parts Trader get paid?
•We collect a 5% commission on transactions from the buyer and the seller. This is 5% commission of the completed deal on the manufacturers last published price. DPT compiles all transactions from the 26th of the month through the 25th of the following month and sends out a single invoice in net 15 terms.

Is there a risk involved?
•NONE. There is no risk using DPT. There isn’t a binding contract to keep you tied to us. There are ZERO setup fees. When you receive parts at half price, then DPT will bill you for that transaction.

How do I start?
•Begin by visiting our forms page and downloading the DPT Packet. Complete the SSAG and Data Extraction and we typically can have you set up in the system in 1 business day. Please give us a call if you would like to speak with a sales representative about questions or concerns or would like more detail about buying through our Power Broker program.

Call us today at: (866) 291-1200.