Every industry where products are sold to businesses or consumers are comprised of companies that compete for sales. The salvage yard industry is no exception. However, because Lubbock auto salvage yards don’t operate as manufacturers or vendors, how they compete for business isn’t quite as obvious as it is in the traditional business-to-business (B2B) and business-to-consumer (B2C) markets. But the competition is there, and much of it occurs in relation to the following factors.
Late Model Vehicles
The definition of “late model vehicle” varies, but it always refers to a car that was made in the past five years. The average age of vehicles on American roadways was 11.5 years in 2015. However, consumers are likeliest to repair late model vehicles when something goes wrong, even if it’s just an aesthetic issue.
This is why late model salvage vehicles are so valuable to junkyards. They may not be the most numerous vehicles on the road in terms of age, but they generate a high demand for used parts that aren’t nearly as expensive as what you’d pay at a dealership.
Accessibility of Inventory
This factor entails two others: how easy it is to find the vehicle you need parts from, and what you have to do to get the parts. The internet is the first place most of us turn for information, so savvy Lubbock auto salvage yards post an up-to-date vehicle inventory on their business website.
Then, when you go to the yard to remove the part, the junkyard provides you with an engine pulling A-frame if you need to remove an engine, and supplies a wagon or similar equipment for transporting parts. The easier parts are to locate and acquire, the easier they are to sell.
Availability of Warranties
Offering warranties for used auto parts may seem like a chancy business proposition, but each part has a lifespan that it usually fulfills. A parts specialist at a salvage yard can remove parts that show unusual wear or signs of impending failure. The parts that are in good condition are reasonable to sell with a warranty option.
The warranty typically isn’t structured like one from a manufacturer, but rather offered on a day-by-day or week-by-week basis, where you pay a nominal fee (e.g. $1 per part, per day). It may not sound like much protection, but the point is to make sure you don’t have a bad part that fails quickly. If you pull a part from a car that experienced a high-impact wreck, the warranty makes sense.
Condition of Locations
The junkyard business has a popular reputation of serving only the most mechanically inclined of us. Part of the reason why is because salvage yards are often thought of as disheveled places where cars are placed wherever space allows, including on top of each other in stacks that look like they could topple.
Some salvage yards are really like this, but Lubbock auto salvage yards that strive to maximize revenue provide a different experience altogether. Vehicles are neatly arranged and easy to locate, safety rules are posted, and the yard is often under camera surveillance. These are the kind of yards cost conscious consumers who aren’t adventurous mechanics want to visit.
About Our Business
Wrench-A-Part is a professionally operated salvage yard in Texas with four locations: Austin, Belton, Holland, and Lubbock. We buy end-of-life vehicles and used vehicles that are good for transportation. To inquire about our inventory or services, send us an email through the contact form on our website.