Automotive Service Network programs:
Components And RequirementsA Glimpse At These Programs And What They Aim To Achieve
by Monica Buchholz In their infant years, parts store network programs, such as those offered by Big A and NAPA, primarily offered automotive repair shops the use of their signs to help the shop gain national identity and recognition. In exchange, shops agreed to buy parts from the program sponsor. Today, the existing programs have expanded and new ones have been developed. More commonly, they are now referred to as automotive service network programs. Although signs and parts purchases are still components of the programs, they also offer many other features to reach the top-notch independent automotive repair shops.
Big A's program was first established in 1987. It was enhanced and formally introduced to the market in early 1997 as the Big A Service Pro Program. According to John Morris, manager of marketing services, it is designed to raise the sophistication of independent service dealers, provide them with the tools to grow their businesses, and ultimately drive new business to their shops. Morris said the company also recognizes that independent repair shops make up a substantial portion of their parts business and that the components of the service dealer program can help make them even better customers.
In addition to signs, the program includes a Money Express 90 Days Same-As-Cash credit card program; co-op advertising; the Big A Pro computer management system; sponsorship in the Automotive Service Association (ASA); reimbursement for National Institute for Automotive Service Excellence (ASE) technician certification and business management education through the Automotive Management Institute (AMI).
To participate, shops pay a first-time enrollment fee and an annual fee thereafter. They must buy parts from a Big A store and meet a minimum purchase qualification. Shops also agree to use and honor the company's Across-America warranty to ensure customer satisfaction and use the same-as-cash credit card program. They agree to participate in a limited amount of advertising, including using the Big A sign. The shop must employ ASE- certified technicians.
The National Automotive Parts Association (NAPA) program was initially started about 12 years ago. Approximately six years ago, it was expanded and presented to the industry as the NAPA AutoCare Program for mechanical shops. The goal is to give independent repair shops access to training, marketing and business-management resources. According to Steve Handschuh, vice president, wholesale markets, a shop must meet strict criteria to participate in the program. Recommendations for participation come from NAPA wholesale managers who have visited the shop.
NAPA has a 16-point criteria that its AutoCare Centers agree to, including making NAPA their primary supplier and first call for parts; stocking a least four NAPA product lines; employing ASE- certified technicians; honoring the NAPA AutoCare "Peace of Mind" Guaranteed Repairs Warranty for customers; prominently displaying the AutoCare Center identification; and following the NAPA AutoCare Code of Ethics. There is an annual fee and a re-enrollment process once a year.
As a participant, shops get access to approximately 25 benefits. These benefits include a same-as-cash credit program, a Customer Satisfaction Index (CSI) program, EPA/OSHA compliance resources; management and technical education; ASE certification reimbursement; publications; a scholarship program for students; and national AutoCare advertising. Most recently, NAPA announced it will sponsor the NASCAR Truck Series race at Nazareth Speedway in Nazareth, Pa. The race will be called the NAPA AutoCare 200.
Approximately a year ago, NAPA introduced a similar program to the collision repair industry. It also sets criteria for shops to follow to become an AutoCare Collision Center and receive benefits specific to collision repair. NAPA expects to have 12,000 shops on its programs by the year 2000, according to Handschuh.
Parts Plus established its initial Car Care Center program back in the '80s, and after adding marketing components, launched it to the industry in 1994. According to Gil Gunn, director of marketing, the program is designed for independent repair shops that recognize the challenges of operating a business and are willing to meet those challenges. Parts Plus warehouses monitor the program at local levels and recommend shops for participation. Shops should have a good reputation and a good general appearance. ASE-certification of technicians is encouraged and shops that participate agree to place Parts Plus signs in and around the business.
Shops pay an annual fee and are re-evaluated every year for participation. As part of the program, they receive business management and technical education; business builders, such as floor mats, steering wheel protectors and repair orders; a North American Parts Warranty; customer communication brochures, service reminders and system operation analysis forms; publications; an incentive program; a technical diagnostic hot line; a lease financing program; and product promotions.
According to Gunn, there are 33 warehouses trained to market the program. "They go to their very best customers first ... the good quality installer," said Gunn.
"A service dealer program, developed by service dealers, for service dealers" is how All Pro/Bumper to Bumper describes its Automotive Service Center program introduced to the industry in 1996. According to Dewayne Johnson, marketing communications manager, program participation exceeded the company's first-year projections. Johnson attributes its success to a council of service dealers who helped develop the program's components, as well as the sales efforts of its warehouses and jobbers.
To participate, shops agree to follow a Code of Ethics, display the All Pro/Bumper to Bumper signs and use the 29 components of the program. The fee for participation varies from market to market as the program is often customized. Its general components include business management videos; technical clinics; a video and audio library; service news and information; super clinic scholarships; customer retention tools; a diagnostic hot line; an inventory management guide and reimbursement for ASE technician certification.
"We wanted to create a healthy distribution channel from headquarters, through member warehouse distributors, through local jobbers, down to the service dealer and their customers," said Johnson. He said that five new marketing promotions have been added to the program in 1997, including Toys for Tots and Muscular Dystrophy campaigns in which shops may participate.
The National Pronto Association has had its Pronto Auto Service Center program since 1984, which according to Bill Maggs, vice president, is designed to provide service centers with additional benefits beyond purchasing automotive parts. The association's warehouses and parts stores market the program, and the criteria for participation varies as do its components. The basic elements include national recognition through the use of signs; advertising and marketing items, such as service reminders; an incentive program; management education and a Protection Plus Nationwide Warranty for parts. There is an annual fee to participate.
CARQUEST provides training and management education to independent repair shops, however, it does not have an automotive service network program. According to Marsh Mundee, director of marketing, CARQUEST has completed its research and will soon announce a new and innovative program to the industry. Mundee said CARQUEST research has shown that shops don't want the company's name on their buildings, and that the new CARQUEST program and its name will support these findings.
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Automotive Service Network Programs: Components And Requirements || Value-added Programs: Helping Auto Body Repair Shops Prosper || NHTSA Air-bag Proposals Being Reviewed, Final Rules Near || Thinking About Expanding Your Shop? || Guest Editorial: New Educational Horizons || Tech To Tech || Tech Tips || News Briefs || Taking The Hill || Around ASA || Shop Profile || Net Worth || Chairman's Message
AutoInc. Magazine ®, Vol. XLV No. 4, April 1997