3m Automotive Parts
We have negotiated better member costs and aligned our retail pricing to improve competitiveness in the retail market. These changes improve sales and retailer margins while providing consumers better products at more competitive retails. Categories in which we have expanded distribution include motor oil, windshield washer fluid, coolant, power steering fluid, transmission fluid and brake fluid. Plus, we have made other significant changes:
- Improved the product mix to sell up consumers to higher quality products.
- Added more relevant consumer brands such as Prestone® and Mothers®.
- Expanded the variety of national brands while maintaining True Value's private-label brands.
- Expanded assortments to meet the automotive needs of urban, suburban and rural consumers.
BENEFITS
- Increasing customer expectations for quality products
- Gross Margin Return on Investment of 2.56% (up 29%)
- Inventory turns of 3.26 (up 27%)
- Yearly sales of more than $27,000 (up 26%) and gross profits of $11,000 (up 28%)
CONSUMER TRENDS
Consumers continue to purchase better quality products as manufacturers have made it easier to understand specific categories. Two examples of up selling the customers are the addition of high mileage and synthetic motor oils. In addition:
- Consumers are doing more DIY projects as their cars continue to age. (The average age is more than 11 years old.)
- The top three DIY automotive fluid purchases are: motor oil, windshield washer fluid and antifreeze/coolant.