Attention auto parts distributors and retailers…
Research shows that the market for automotive sensors will grow 10% each year for the next decade. Are you ready to claim your fair share? Allied Market Research estimates that the global automotive sensors market—like ABS wheel speed and engine management sensors— will almost double to just over $37B over the next 10 years. In fact, we’ve already seen our clients grow their sensor business by 2x, 3x, or more over the past few years, just by taking a few easy (and highly profitable!) steps.
Want to learn how you can do it? Keep reading to find out the 4 keys to claiming your share of this exploding market.
Step #1: Be in the business
Every day some distributor or retailer tells us, “But guys, there’s no money in sensors.” It’s simply not true— automotive sensors are already an almost $20B business, and that’s about to double!
There is plenty of money (and massive profits) in aftermarket sensors, but you have to carry the stock if you want to claim your share.
You don’t need to stock every SKU for every sensor type. But you do need to cover a broad assortment of SKUs in each category. But that doesn’t mean just covering the top 50 parts and calling it a day. Because you’ll still be missing out on a ton of potential sales. In general, we recommend following the 80/20 rule— about 20% of the SKUs will drive 80% of your sales. So those are the ones you NEED to stock. In some cases, it may be even less. For instance, we offer over 2,500 ABS skus (as of today).
We recommend that most distributors or retail chains stock around 250 different SKUs, which is just over 10% of our line.
Any more than that, and you’ll slow your turnover. Any less, and you’re probably leaving sales on the table. And what about the sales of the parts you don’t carry? Well, if you’re a Holstein Parts customer, we’ll gladly drop-ship special orders direct to your customers or stores. But those requests will be few and far between if you follow this next step…
Step #2: Stock the right sensors
Easier said than done, right? If you knew what was going to sell in advance, you could max out your bonus every quarter and demand a big raise! Except that when it comes to auto parts, we CAN tell you what’s most likely to sell for you.
Our proprietary SensorOpps analytics gives us access to the sales of automotive sensors for all brands across the US and Canada.
And we can break that down by region. So we can tell you that if you’re in Dallas, the 2ABS0800 is the top seller. So you’re going to want to stock up. But if you’re in New York, it doesn’t crack the top 10. How can you dial in your assortment?
If you’re stocking Holstein Parts, we’d gladly help you compare what you are carrying against what you should be carrying to find the “opportunity gaps” that boost your revenue.
That way you can optimize your inventory, speed your turnover, and eliminate dead-weight from your overstuffed shelves. Speaking of those shelves…
Step #3: Make the space you need
We can hear you talking back to your screen right now. And you’re saying, “Where am I going to find room for more sensors! My shelves are full…” Well, answer this—do you want to look like a hero next quarter? If so, the first thing you need to do is cut the dead-weight out of your assortment to make room for the items that will drive fast-turning, high-profit sales. And then, there’s one more critical thing you can do to save space: Make Holstein Parts your go-to supplier for automotive sensors.
We’ve simplified our packaging to save you both money and shelf space. In fact, without the bulky boxes, you can fit up to 5x as much inventory into the same space!
Just check out the photo—you can fit 25 of our sensors in the same space where you currently fit just 5 of our competitors’ parts. Let’s face it— nobody is buying wheel speed sensors based on the box. So save yourself the space, stock the items you need…and rake in the profits.
Step #4: Take your profits!
If you want to grow your profits exponentially, you can’t be afraid to make money. And that means charging a fair price for an excellent product, regardless of how much you paid for it. Holstein Parts sensors come with a 3-year/36,000-mile warranty. Our in-house quality management team is second to none. These are top-quality parts, as good or better than OEM. So just because you paid less, it doesn’t mean you need to give them away…
When you buy them from us at up to 40% less than our competitors, you don’t need to sell them for 50% less.
Sure—pass some savings on to your customers. They’ll appreciate it and you’ll sell more. But keep some profit for yourself, too. For example, let’s say you buy an ABS sensor from us at $24.11 vs. our competitor’s $79.50 cost.
Our competitor’s MSRP is $159.99…so you can knock 25% off of that price and sell ours for $127.99. And you’ll still make a whopping 81% margin.
Now do that a few hundred times and watch your profit margin explode! Plus, because you’re carrying the parts you need, you’ll sell more parts too. Listen, we can’t tell you where to price our products, but there’s no reason to make any less money than you need to. And if you price Holstein Parts sensors the right way, you can double your sales and triple your profits—and that’s what we want for you.
Ready to claim your fair share of the auto sensor market?
If you’ve made it this far, then you KNOW you’re not maximizing the revenue and profit potential of the automotive sensor business. We’d be excited to change that for you. Holstein Parts offers over 90% SKU coverage in 14 different sensor categories — from ABS wheel speed sensors to engine management sensors, cam/crank position sensors, knock sensors, and more. And we ship your orders with an average 95% fill rate. And in addition to industry-best quality and game-changing pricing, you’ll get access to the most responsive support team in the industry too.
We’ll hook you up with prepaid freight on your first order, regardless of how big or small.
So don’t wait. Click below and send us a message right away. And we’ll run a SensorOpps report for you to find the opportunities you’re missing and get you on the track to profitable growth now.