In the latest PartsEdge webinar, we uncover why wholesale collision parts might be hurting your department more than helping. Based on dealership case studies, she shows how returns, margin erosion, and outdated discount models are driving profits down. Chuck Hartle founder of PartsEdge share practical ways to evaluate accounts and make tough but smart calls.

Stop Treating All Customers the Same

Some body shops return 25 percent of what they order. That junk becomes dead stock. Chuck explains how to split accounts into three types. Green means loyal and low returns. Yellow means inconsistent. Red means high effort and low margin. Red accounts should be warned or cut off.

Reward good customers with better pricing. Everyone else should earn it.

Volume Means Nothing if Margin Disappears

One store sold 1.7 million dollars in wholesale at only 8.8 percent gross. Another sold half that but made almost the same profit. Chuck explains that chasing volume often hides how little you are keeping. High returns and high effort make it worse. Focus on what brings real profit, not just numbers.

Look at gross profit, not just gross sales.

Wholesale Should Not Drain the Whole Department

Wholesale takes four times the effort to earn a dollar compared to retail. Add in higher returns and shrinking OEM incentives, and it becomes a losing game if not managed well. Chuck gives ways to scale back support slowly, adjust sourcing, and check DMS reports on return rates and payment patterns.

Support wholesale only if it helps retail, not the other way around.

Takeaways

"Wholesale is not bad. But it has to be smart." — Chuck Hartle

Watch the replay here:

https://youtu.be/0B3kgMdjVOU