1-800-RADIATOR & A/C integrates cutting edge technology, enormous buying power and great vendor relationships with locally owned and operated franchised businesses to provide the best solution for the wholesale auto parts industry.
Franchise Business Overview
The 1-800-Radiator & A/C franchisee has on average 1,000 automotive type businesses as its primary customers, including parts stores, gas stations, repair shops, body/collision shops, new and used car dealers, junk yards, and radiator repair shops. A fully integrated proprietary software system (System) gives franchisees a strong competitive advantage over local competitors in their market.
The System contains algorithms which produce superior breadth and quality of inventory, which allows sourcing from over one hundred major manufacturers by utilizing a robust "stocking mechanism" in its software. The System helps fine tune each and every market to have a unique inventory mix tailored to the specific vehicles in that market. When a customer calls, the exact correct part is almost always on hand at the franchisee’s warehouse.
The System also contains a "Customer Relationship Management" (CRM) feature providing superior marketing formulas. The CRM automatically tracks every phone call, every mailing, every in-person sales visit, every comment, and every sale made to each of the customers in the territory. The system constantly analyzes the data in order to give the franchisee efficient direction on where to focus next with marketing efforts.
The System also provides instant up-to-date information on profitability, sales performance and employee productivity.
Simple Model Aided by Technology
1-800-Radiator & A/C is a simple concept: Franchisees deliver brand-new auto parts within two to three hours to local wholesale customers (automotive repair shops, parts stores, etc). The model hinges on two key components;
The best franchisees always have the correct parts in stock when customers call, which creates long lasting customer relationships. When auto repair shops call for parts they will usually buy from whomever has the part available that same day at the best price. 1-800-Radiator & AC’s technology offers definitive advantages over competitors to execute this effort.
Sales and Marketing
The System provides data which highlights which local auto repair shops should be targeted for a sales call or a personal visit. These timely customer contacts provide a competitive advantage over competitors who do not have sophisticated systems to track the same customers. Most full time sales personnel log 20 to 25 high potential in-person visits per day using the System’s custom built Customer Relationship Management system. The System compiles the lists based on data accumulated from in-bound phone calls and other recent customer contacts, then hands off those lists to a franchisee’s salesperson to execute contacts with the shops. These visits are then rolled up into the System for tracking purposes, giving the franchisee superior visibility into his market. Franchisees with the most market share visit each of their potential customers an average of than four times per year or more.
Over the past seven years 1-800-Radiator & A/C has successfully used its systems to fine tune direct mailings, phone blitzes, sales promotions, inventory optimization, customer pricing and staffing models to triple its market share.
1-800-Radiator & A/C has successfully expanded its product offerings into other key automotive parts categories besides radiators and air conditioning parts. Five years ago most sales came from radiators, but today over half the sales are coming from hoses, clamps, thermostats, a/c condensers, fan assemblies, side view mirrors, fuel pumps, sending modules, gas tanks, compressors and related a/c parts. New products will continue being developed so that franchisees can have even more opportunity to grow their businesses in the years ahead.
The addition of new products leads to verticle expansion through the existing customer base consisting of a robust, loyal group of customer who are already buying radiators, compressors, condensers, fuel pumps and other lines.
Another key factor to franchisee growth has been the internal development of sophisticated tools to identify, evaluate and integrate acquired competitors into the network. Since the year 2000 over $65 million in competitor revenue has been added to franchisee's sales. On the day an acquisition is completed, the competitor’s location is usually closed, and the phone numbers of the competitor are then transferred to the closest franchisee's location. These acquisitions can range in size from single unit buy outs to much larger multi unit deals.