Fixed Ops Focus – Episode 25 Aftermarket vs OEM: The Truth Manufacturers Won’t Tell You
Hey everyone, welcome back to Fixed Ops Focus with your hosts Steve Shaw and Dave Rogers! This is Episode 25, and we’re laser-focused on the parts side of the house – how mastering your parts strategy supercharges customer retention and transforms your parts department into a true profit powerhouse, especially when it comes to aftermarket parts versus OEM.
We lead off with customer retention – the heartbeat of fixed operations. Loyal service customers return again and again, spend more per visit, refer others, and drive up your CSI and absorption numbers. We break down real-world tactics that actually work: crystal-clear pricing to build instant trust, detailed multi-point inspections that reveal genuine needs, thoughtful follow-up communications, smart loyalty incentives, and that personal connection that turns one-time repairs into lifelong relationships.
Then we dive into the heart of the episode: why aftermarket parts are winning big in dealerships today. The #1 reason customers are perfectly fine – and often excited – about aftermarket? Straight-up price. OEM manufacturer parts have gotten ridiculously expensive,
and in this economy, vehicle owners are watching every dollar. A solid aftermarket option can slash the parts cost by 25-50% (sometimes way more), dropping the total repair bill dramatically. That kind of savings keeps the customer in your bay instead of heading to the indie shop across town – and nothing boosts retention like winning the price battle while still delivering quality work.
From the dealership perspective, aftermarket is a massive profit center opportunity. OEM parts often come with compressed margins thanks to factory pricing structures, but quality aftermarket lines from trusted suppliers frequently deliver higher gross profit percentages – think 30-60% or even double what you make on straight OEM sales in many cases. You also get faster availability through multiple vendors, more sourcing flexibility, and the ability to close more deals on price-sensitive jobs. Customers walk away feeling they got a great value, your parts gross profit per RO climbs, and your service department stays full. It’s a textbook win-win.
If you’re a service manager battling to keep bays booked, a parts director hunting higher GP, or anyone in fixed ops who wants to turn parts into a retention and profit engine – this episode is loaded with dealer stories, practical strategies, and no-fluff insights you can use tomorrow.
Hit play on your favorite platform, subscribe so you never miss an episode, leave us a review to help grow the show, and jump in the comments: Are you leaning into aftermarket more these days?
What’s your biggest profit or retention win from offering it?
Thanks for listening – go make those parts departments shine!
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