Out of the Crisis.Org

[Louis Altazan]

Most quality shops are all too painfully aware of the problem with parts. Low quality parts have always been a problem, but shops could largely avoid it by buying OEM and name brand parts only. I find this is largely changing, and changing rapidly. Brand name companies of the past, more and more are turning to inexpensive offshore manufacturers. The potential for short-term profit is immense.

In a normal free market system, higher quality parts command a higher price. People seek them out, realizing a bit more spent up-front is much less expensive long-term. The superior results obtained and much longer life expectancy justify the price. Further the lack of additional problems caused by substandard parts makes high quality replacements a bargain.

Traditionally low quality producers suffered a great many comebacks and often went out of business. This was in a normal free market system. We have evolved into a much different arrangement over time. The complexity of vehicles precludes most people from being able to judge or measure quality. It is very difficult to distinguish one part from another, except over time.

Secondly, government regulation have increased cost drastically for domestic manufacturers. Rather than a twenty to thirty-percent advantage, offshore companies can produce for a minute fraction of the cost. A quality part that cost $60.00 to produce may sell for $120.00 at retail. A low quality replica may cost $5.00 to produce and sell for $80.00 retail. With that sort of margin, the installer will get tired of changing the part before the seller tires of handing him replacements. The seller does not have to cover the labor to replace, supplies used, time that might have been sold instead of replacing defective parts and on and on.

This was all bad enough when low cost parts were represented as such. Now many large companies have fallen prey to this thinking. They realize the name on the box is normally the primary selling point. Why not cash in on the low cost bonanza?

For instance A.C. Delco has long represented a quality brand. The name commands a higher price for this reason. Now Delco sells two lines. One being their traditional part, the other a low-cost replacement, but still in their traditional blue and white box, prominently labeled Delco. Without carefully checking part numbers it is difficult to tell one from another, except over time.

People are pretty smart and judge things by results, not claims. If not, Toyota would not be mopping the floor with the remnants of GM and Ford. In the interim, shops need to be very careful about their suppliers. It’s our reputation that is on the line, and us the client trust to continue to provide quality.

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Louis Altazan
Owner/Manager AGCO Automotive Corporation
Baton Rouge, LA

[Dave]

As the different parts suppliers change who makes their parts it can be a challenge to find quality parts. We are starting to find that sometimes the OEM's do not have the best parts.

For example, we have a client that has an Isuzu NPR he delivers packages with. Lots of stop and go, in town driving. We were getting 10,000 miles from a set of OE front brake pads, changed them twice a year. After trying different pads we found Carquest Blue pads lasted three times as long with no adverse effects. The did cost more initially, but the cost per mile was much less.

It is interesting to me that some of the different parts manufactures and distributors talk about branding their products. They seem to think that the average person on the street can be made loyal to a brand of parts. But we find it is very rare that we have someone come in and ask if we use XYZ parts. They trust us to install quality parts.

Several years ago I was talking to the owner of a local parts store about oil filters. The store carried three lines or qualities of filters. For the most part the only people that bought the bottom quality filters were repair shops. The individuals that came in bought mostly the middle quality filter. some purchased the high quality filter. That told me who was buying on price and who was looking for quality.

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David Wittmayer
Owner / Manager
Hansen Enterprises Fleet Repair, LLC
Camp Verde, AZ
www.hefrshop.com

[Louis Altazan]