This is the second part of a two-part series on special and emergency part orders. Read Part 1.

As you think about your special and emergency part orders, what comes to mind? Probably either a technician or a customer standing at your parts counter getting frustrated because you don’t have the part they need. I have been behind enough parts counters to see this multiple times.

It is imperative to have all the wear parts for all the products you sell. However, what are you supposed to do when a customer runs a rock through their snowblower or runs their car over their lawn mower and they have a need for you to get the parts right then? Having a well-defined process for special and emergency parts will save you many headaches behind the parts counter.

Communicating to Customers

One thing to consider before beginning your process is what you want customers to experience when they discover that you don’t have the part they need. By this I mean, when a customer leaves your parts department and goes to your local coffee shop or restaurant, what will they say about their experience at your parts counter? Every customer will say something about your dealership, but it is up to you to craft the right experience.

Again, it is not possible to have every part that every customer will need. It is important, though, to have a clear process that will help communicate with the customer every step of the way, making sure they have a positive experience with you, your department and your dealership.

Defining the Difference

Let’s define the difference between special and emergency orders. Special order parts are parts that are ordered by your customers that would not typically be in your stocking order. Again, it might be because you haven’t had enough demand to begin the “phase in” process for the part. A part that is a special order could cross over based on demand and become a stocking part.

Emergency orders are most typically made for your service department. The technicians may be working on a piece of equipment and realize there was a needed part that they didn’t catch during the triage process. It can also be a part that a customer needs to get a piece of equipment repaired within 24 hours and they don’t care what it costs to get the part in — they just need it.

As a side note, you would want to evaluate the demand level that the emergency order might create for a part and consider making the part a normal part of your stocking inventory.

Create a High Performance Dealership with Bob Clements is a new series brought to you by Yanmar.

More from Bob Clements

Yanmar — Don’t settle for less when you can have more. For example, Yanmar makes all its compact tractors’ major drivetrain components – the Yanmar engine, transmission, and axles — in-house. Because they’re made to work perfectly together, you and your customers get a hardworking machine with more usable horsepower, less power loss, and a smoother, more comfortable ride. Yanmar’s tractors are designed to work as hard as you do for a lifetime. Strengthen your dealership with Yanmar today: AgMarketing@yanmar.com or call 770-877-9894.

Paying for Parts

As you define your process for special order and emergency parts, you first want to create a policy on when the parts are paid for. In all of the dealerships that I consult with, we require all special order parts and emergency parts to be paid up front, with a few exceptions. I encourage dealers to make an exception for “A” customers. “A” customers are customers we never say no to. You will probably only have 10 or 15 of your customers in this category. These are the customers that if they called you up on a Sunday and said they needed a part so they could work the next day, you would meet them at the dealership in 30 minutes. We would not ask them to pay for special order parts up front because we know they will take care of it.

However, in every other situation, I am not going to place that order without being paid upfront for it, including freight.

Another policy you need to have in place is when and how you are charging for freight. If the part is simply added into your stocking order and the order comes to you freight free, most of my dealers don’t charge the customer. Those that do charge, charge a minimal amount, maybe $4, to help off-set freight overages on other orders. If you are going to charge for freight, you should do it upfront before you order the part. It will save some hassles and arguments with customer later.

Keeping Customers Informed

You will also want to think about your process for informing customers their parts have arrived and are ready to be picked up.         

One of the things that drives me crazy is when I see a special order or emergency order that is delivered at 9 a.m. and at 1 p.m., the part is still there and no one has contacted the customer.

You also want to inform customers of return policies for when they ordered the wrong part. In most cases, my dealers have a 25% restocking policy on returned parts that came from a special or emergency order request.

Customers don’t need to know the ins and outs of every aspect of your order. However, it is important to give them the estimated time of arrival on the part and how they will be notified when it gets there. Someone specifically has to be assigned to this important role. It can’t be left up to chance and given to anyone who is available or has time. We all know that the ball will be dropped and that customers will be unhappy. Instead, let the customer know who will be following up with them. That way, if they have questions about the status of their parts, they know who to ask for. If that person leaves, simply move the responsibility to someone else. It all has to be part of the process.

Choosing a System

There are a number of different technology resources to help you keep your customers notified about the process of their order. Do you have a text or email service set up that you can automatically notify them? If you are using a text or email notification in your service department, why not start using the same service in your parts department? Be sure to let customers know about the option.

If that is not something that you can offer, consider giving them the tracking number on the order so they can check on it online. Don’t overlook the power of picking up the phone and updating them about the status of their order.

Ask yourself this: When you order something specific, how do you like to be notified of the status? It is better to over-communicate with your customer then to not communicate the status at all. How you inform the customer about the order status determines how they will view the experience at your parts counter and what they will tell others about your dealership as a whole.

It is also important to have a process in place for informing the service department of the arrival of an emergency order. When there is lapse in that communication, the service department will have an unhappy customer and you will have an unhappy customer of the service department.

Keep in mind that your service department is the parts department’s biggest customer and the two have a mutually beneficial relationship. When labor dollar sales increase, so will sales in your parts department. It is important the two departments work together to help the overall success of the dealership.

Handling Costs

Let’s talk a little more about handling the cost of special order parts for customers. Your special order parts cost should be collected up front, in full. This fee will include the cost of freight, even if it comes with your stocking order. You had to do the extra work to order this part and follow up with them.

In regard to your emergency order parts for your shop, your shop should build the additional freight cost into the labor cost of the repair. In addition, you should make sure you are still adding an extra 5% to each of the emergency order parts that are purchased by the shop. This is because you are doing the extra work of looking up the information of the part and transporting it to your shop.

By taking the time to set up a good process for dealing with both special and emergency parts orders, your customers and your service department will thank you. And, you will see good growth to your bottom line.

Create a High Performance Dealership with Bob Clements is a new series brought to you by Yanmar.

More from Bob Clements

Yanmar — Don’t settle for less when you can have more. For example, Yanmar makes all its compact tractors’ major drivetrain components – the Yanmar engine, transmission, and axles — in-house. Because they’re made to work perfectly together, you and your customers get a hardworking machine with more usable horsepower, less power loss, and a smoother, more comfortable ride. Yanmar’s tractors are designed to work as hard as you do for a lifetime. Strengthen your dealership with Yanmar today: AgMarketing@yanmar.com or call 770-877-9894.