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Old 10-29-2009, 05:53 PM   #1
XDCX
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Default Chrysler to introduce Mopar eStore - Selling parts to retail customers

Chrysler just released a Press Release and a D-mail indicating that they'll be launching a Mopar eStore where customers can purchase parts on-line and have them delivered to their doorstep.

Parts ordered on the Mopar.com website will be referred to the local participating dealership for shipping.

There was no information about pricing or dealer margin - details to follow.

From a dealer's perspective, is the Mopar eStore a good thing or a bad thing?

Here's a link to Chrysler's Press Release from Reuters - click here
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Old 10-30-2009, 12:43 PM   #2
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Originally Posted by XDCX View Post
Chrysler just released a Press Release and a D-mail indicating that they'll be launching a Mopar eStore where customers can purchase parts on-line and have them delivered to their doorstep.

Parts ordered on the Mopar.com website will be referred to the local participating dealership for shipping.

There was no information about pricing or dealer margin - details to follow.

From a dealer's perspective, is the Mopar eStore a good thing or a bad thing?

Here's a link to Chrysler's Press Release from Reuters - click here

The answer to your question will depend on several factors.

-What's the pricing level?

-How will the dealership/Mopar.com integration be configured?

-Who handles invoicing?

-How will returns be handled? Due to either wrong look-up or just the customer changing their minds? How will that affect our return allowance?

-How does the dealership collect on their sales and how long does it take (or 100 other potential screw ups in that area)?

-How will the customer know which part to select? Is it going to be a StarParts based system? If so, will they have to go through the training program to use it like my countermen do?

Etc, etc, etc...

If it's handled like the National Installer program, God help us...
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Old 10-30-2009, 12:46 PM   #3
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Oh, and if it's like anything else a manufacturer does, they make it really attractive for the first year and then squeeze the good stuff out of the program after it takes off.
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Old 10-30-2009, 12:49 PM   #4
possum
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For years, the factory has tried to get around the Dealer. This is another "test" to get it done. Work out the bugs, then dump the Dealer part all together.

This is an age old saga..................
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Old 10-30-2009, 04:51 PM   #5
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-What's the pricing level?
Great comments - it's nice having a Parts Guy in the House.

Concerning pricing, this will be the key in my opinion. If Mopar tries to sell at Suggested Retail they may as well stop now, no one pays Suggested Retail on the Internet.

But if Mopar offers a discount, that's a slippery slope. Are they going to try to undercut existing Chrysler dealers that have an active presence on the Internet? What percentage of the margin is Mopar going to want to keep?

As we witnessed last year with the Service Contract mailing, Chrysler has a history of trying to sell directly to the retail customer and bypass the dealer.

I wonder, do any of the other OEMs sell parts on the Internet?
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Old 10-30-2009, 04:53 PM   #6
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For years, the factory has tried to get around the Dealer. This is another "test" to get it done. Work out the bugs, then dump the Dealer part all together.

This is an age old saga..................
I was thinking the same thing. It reminds me of GM's "test" by selling new cars via Ebay.

Life's not good when you realize you're competing directly with your OEM.
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Old 10-31-2009, 01:59 PM   #7
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Concerning pricing, this will be the key in my opinion.

Pricing is important, but I really don't think it's at the top of the list. There are so many things that can make this program not worth fookin' with even if it's pulling 45%.
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Old 11-02-2009, 10:04 AM   #8
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Pricing is important, but I really don't think it's at the top of the list. There are so many things that can make this program not worth fookin' with even if it's pulling 45%.
I agree with your point that there are several factors that could make this program unappealing to a dealer even if it were pulling a 45% gross profit.

The reason I've focused in on pricing is my fear that Chrysler will try to undercut dealers who have existing Internet operations. If that's the case, then profits which used to go to the dealer are now going to be split with Chrysler.

Conversely, if Chrysler promotes their website and more customers purchase Mopar parts instead of off-brand parts it has the potential to be a win-win situation. Time will tell....
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Old 11-02-2009, 10:10 AM   #9
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A further peril is when the customer gets a bad part or accessory. Who will they go to then? The dealer closest to them will get all the bad and no revenue.
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Old 12-02-2009, 02:14 PM   #10
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A further peril is when the customer gets a bad part or accessory. Who will they go to then? The dealer closest to them will get all the bad and no revenue.
To their credit, it appears Chrysler's addressed this issue and the local dealer will not have to deal with returns.
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Old 12-02-2009, 02:19 PM   #11
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Default Who pays Retail on the Internet?

I just read the sign-up information for the Mopar eStore and was amazed that Chrysler hopes to sell parts and accessories at List Price.

Maybe I live in a different world, but my experience dictates that anyone who's sharp enough to find Mopar.com and order a part is probably sharp enough to perform a Google Search and find a lower price.

Maybe I'm paranoid, but it's almost like this program is designed to fail?

On the plus side, I'm glad Chrysler's not trying to compete with their dealers who have existing Internet operations by selling parts below List Price.
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Old 12-02-2009, 05:49 PM   #12
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A Chrysler program...not thought out...thrown into the market place half done...constant babble from.....oh I can't go on tonight. Where's my gallon jug of Carlos Rossi ripple?
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Old 12-02-2009, 09:53 PM   #13
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A Chrysler program...not thought out...thrown into the market place half done...constant babble from.....oh I can't go on tonight. Where's my gallon jug of Carlos Rossi ripple?
At least this program is better than where we were last year at this time - that's when Chrysler Service Contracts sent out a Direct Mail piece to retail customers offering contracts for less than dealer cost.

I still remember the Conference Call where Press indicated that he knew nothing about the program but he'd fix it so the dealers would be able to share in the profits from future mailings. I guess we're still waiting....
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Old 12-03-2009, 04:58 PM   #14
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Where's my gallon jug of Carlos Rossi ripple?
I thought I was the only one who drank that? My wife really gives me hell about it.

Fellas, I keep saying, the good times are over for good.
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Old 12-03-2009, 05:28 PM   #15
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Fellas, I keep saying, the good times are over for good.
So, I'm guessing you didn't see my posts earlier today about making this a happy site for the NEWCO dealers to visit.... (Just kidding, but it did make me laugh when I read your post.)
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