By Brian Bachand

“Beauty is in the eye of the beholder”, the epitome of perception being subjective and consequently divergent. Our inventory specialists have been trained to be detail oriented and accurate in their assessments and descriptions. Our sales people have been nuanced to listen to our customers’ needs in order to pitch our parts and sell our services accordingly. With this being said, can we find reason in this riddle? A body shop refuses our used door with a reported 5D1 damage code. A very nice door with a credit card size dent which our sales communicate to the shop. However the customer says it has 3 hours worth of clean up and will not use it. So we take it back and refund their money. But then a repair shop takes that same 5D1 damage code door the body shop refused and tells us, it is good to be bolted on their customer’s vehicle. Our perceptions are conditioned and are unique to the expectations in which we have formed from prior experience and situational understanding. With so many different and sometimes conflicting perceptions to account for, how do we find common ground? How do we standardize our processes and products, so that we may attempt to meet the vast and varying expectations of our customers? Our resolve may lie within the ARA Parts Grading System.

The ARA Parts Grading System is a great rule of thumb for your inventory. It should be the standard for the auto recycling industry and we would be wise to educate ourselves and our customers of the inner workings of this cipher. For those new to the scene, or in need of a great tutorial for your staff, may I suggest an immediate redirect to the ARA website. There you will find the ARA Damage Code Ethos. Print this out and distribute it to the masses. Learn it, live it, love it. A recycler’s Search for Everything Across Hollander, APU and Inventory Buddy. It might not be “Eat, Pray, Love” but this guide alone has the power to reshape and retool your entire inventory. The standard grading system ARA has assimilated, is the lens in which the responsible and exemplary recycler should view and inventory their parts with . ARA’s Parts Grading Module can be found at the ARA University Website. This easy and enjoyable video to watch and understand features ARA’s very own Executive Director Vince Edivan and ARA’s Emily Yancey of Yancey Auto Salvage. This dynamic duo provides us with  a hands-on, engaging and informative tutorial on best practices and perceptions on how to assess, apply and implement the ARA Damage Codes.

Vince and Emily show us that this standardization is not rocket science, yet neither is it the Rosetta Stone. They define the types of damage, how to determine each type of damage and the # of measured units of said damage. They also demonstrate the damage’s location designation according to the part type legend ARA has created. Viewers are able to understand how the amount of damage correlates with the tier of part condition. From there we are able to determine which market is targeted with each grade of part. After reviewing this module we are able to take a lot of uncertainty and risk out of our parts grading system. However, we are now left with the questions of how and where to market our own parts. How can we best implement the ARA Damage Codes and the parts grading system into our system of operations. And what types of customers are we looking to connect with each grade of parts based on the parts we do decide to inventory.

Parts with clear and concise descriptions that account for the accurate aforementioned damage codes, while having corresponding quality pictures is what we should be trying to standardize. The Gold Seal Standard the ARA has implemented and partnered with URG, is the ultimate goal that we are promoting to assure quality assurance. Though we can control what is within our control, such as our inventory control and product presentation, the perceptions and expectations of the customer vary and should not be assumed. Sometimes an enigma, oftentimes miscommunication, regardless of the logistics it can be difficult to align our parts with unknown or changing expectations.

Detailed parts descriptions and accurate damage codes are just as important as proper pricing. It is imperative to do your research and cover your costs when assessing your inventory. But even with flexibility built or room to adjust, there will always be those who do not want to pay our prices for used parts. We all have had experiences where some people just expect brand new OEM parts conditions and aesthetics out of our used auto parts.  How many times have we been wrong, looking at what we think is a good used body panel with maybe a ding or a dent. We account for and communicate these discrepancies and damages, only then have the part refused or passed on because it wasn’t triple zero (000) or because it did not meet the customer’s expectation? My personal favorite is when we think our customer is “a worker” and they will “make it fly” only to have the part come back because the shop “doesn’t do rust” anymore. Or the body person was looking to just bolt it on, and is actually not “the worker” we had assumed they were. These scenarios and assumptions continue to play out over time. We seemingly continue to roll the dice in hopes that we are good judges of other’s expectations and that we did right on our end with communicating clear and reasonable perceptions of our own parts’ conditions. So how do we combat these disagreements and differences in perceptions and expectations?

Shifting our paradigms to better meet the demands of our customers is a great place to start. Re-evaluating our own perceptions of our customers expectations can help us simplify our processes and can guide us to how we want to market our parts. We know Tom is very picky while Tina will work with the usable product. Amber won’t take anything with rust and Adam will take everything if the price is right. Knowing your customers and getting feedback on the parts you are sending out and are taking back,are keys to understanding how and what parts you should be promoting to each targeted market. Sell smarter not harder. This concept is easier said than done given the nature of our daily operations. We want to sell more parts and time management is priority numero uno. Constructive and efficient uses of time, focused on communicating our perceptions and understanding our customers expectations create continuous customer service that will translate into quality assurance and customer satisfaction. Sound sales strategies will reap you greater profits even when you find your parts are not triple zero (000) or bolt on ready. In order to capitalize on this concept we must make sure that we are transitioning our parts towards transparency.

Transparency is a key attribute coveted by our business and with all our customers. In the age of automation and speed, the humanity aspect has become a collateral casualty. You call your cable provider and it’s a menu of voice commands and responses. Mobile Banking, Internet Troubleshooting and online shopping, all carried out by the monotonous monotone of the digital sales entity. All this innovation has done well to increase sales and optimize production, but in the process of this evolution, we have suffered the loss of human empathy and problem solving. Should we be embracing the change and using these technological advances in our business? Absolutely we should be keeping with the cultural trends and market shifts. However, in light of this movement, it is imperative now more than ever that customer service keep the auto recycler relevant and viable. The reviews we earn and the perceptions we create of our business, our association and our industry is the moral fiber of our existence. How we relate to the customer, earn and keep their trust, while supplying them with a quality product and a positive memorable experience is the remedy to this rancorous riddle. Transitioning your inventory control and sales design towards transparency is good ethics worthy of a 5 start review and is also a proven revenue and reputation boost.

Changing your outlook on your parts starts with you. Reviewing the ARA Parts Grading Module with Vince and Emily is an energizing way to get yourself and your staff headed on the path to auto recycling reverie. Get your sales team and inventory department together to cross train and brainstorm the following ;  what is the best directive to take, what vehicles/ parts / part types should you inventory, how will you implement the grading system, and where and whom will you market and sell your product to. These are absolute essentials to optimizing your inventory control and quality assurance. Analyzing and strategizing your perceptions of your customers and their expectations will significantly enhance your sales potential while decreasing your return rates. The damage codes you correctly state, to the descriptions you use for each part,  paired with quality pictures of the part and or vehicle inventoried, are the foundation of all to follow. The sales team partners with the inventory specialists to determine the market for the parts based on year, make, model and demand versus supply. Those logistics compared with the parts grade and condition will determine how you inventory them, as well as how and to whom you target to sell those parts to.

Tapping into your business’s trajectory when it comes to inventory and sales is something everyone should be doing routinely. The times are changing and so is the nature of the industry and the needs of our customers. Make the time to make it happen before we find ourselves at the mercy of one of the hardest to shake adages of what we do.  We say we do not have the time, so basically we are saying we are not making the time to do it right. Yet there is and always will be time made to do it again? Failure to plan is planning to fail. Strategize how to alleviate risk. Otherwise we are dismantling vehicles only to put the should have been sold parts back on the shelf or in roll offs.

Consider the following. That rear suspension camber bolt is looking like it’s frozen and isn’t going to come out? New England problems, but still maybe we should not bother inventorying forty dollar rear control arms that won’t come apart. That 20 year old hundred dollar door has three plus hours worth of cleanup on it? Inventory it as a parts door instead of gambling on a desperate need. Or how about that good money 3.6 liter motor that is noisy upon start up and has higher miles? Get a video and keep it local or put it in under engine parts. Otherwise run the risk of eating shipping costs or refunding or replacing the motor.

It is time to turn the page and buy into the vision of a transparent and prepared future of the auto recycler. Implement ARA’s Parts Grading System and its Damage Codes into your inventory and work with your staff to strategize what is the best way for your business to inventory and sell parts. Together with well thought out inventory standards and procedures tailored to customer favorable sales strategies, our businesses can continue to evolve and shape the trajectory of our industry. Be a part of changing the public’s perception of your business and who we are as auto recyclers, by transitioning towards transparency. Altering our own expectations whilst analyzing and accommodating those of the customer, will blaze the path towards quality customer service, inventory assurance and hopefully renowned customer services. Behold the beauty of the beast and you will perceive the path to your next beneficial business endeavor.