Mighty Distributing System of America Inc. executive team (left to right) Barry Teagle, vice-president, franchising, Ken Voelker, president and CEO, Gary Vann, senior vice-president, sales and marketing, Rodrigo Gonzalez Calderon, CEO, Grupo Gonher S.A. de C.V. and Brad Bradshaw, vice-president, product management
Recently, western dealers Co-Auto, which serves 875 dealer members in Western Canada, was awarded an exclusive master licence to distribute Mighty Auto Parts products in the provinces of Alberta, British Columbia and Saskatchewan as well as Yukon Territory.
The new agreement with Mighty Auto Parts gives WD Co-Auto members access to additional revenue opportunities by expanding their ability to service automotive brands above and beyond their franchise brands, an aspect of the business that’s becoming increasingly prevalent. “This is a relationship we’ve put together to help our dealer members win back the express service business,” says WD Co-Auto President Mike Reid, during an interview with Canadian auto dealer.
Thanks to the master distributor arrangement, WD Co-Auto members can take advantage of Mighty’s full range of preventive maintenance products, including filters, wipers, lighting products, batteries, brakes, belts, shop supplies and chemicals for a variety of different vehicles. “It is a cost competitive program,” says Reid “and provides access at an effective price, with the same quality that OEMs offer their franchised dealers.”
Barry Teagle, vice-president, franchising, Mighty Auto Parts, says that as the service side of the business has shifted more towards maintenance and away from factory paid warranty work for many dealers, it has opened the door for a horizontal product offering they can use in support of servicing a greater variety of makes and models of vehicles.
“As the age of vehicles increases, and used cars continue to be a larger part of the dealer business, they are going to have to adjust to be able to provide those services in addition to the OE business,” remarks Teagle.
Mike Reid, president,
WD Co-Auto
He also notes that besides the shift towards more maintenance work, historically low price differentiation between new and used vehicles, as well as the proliferation of stand alone light repair facilities have driven the need for quality aftermarket programs like those offered through Mighty Auto Parts. “A number of OEMs are really promoting the quick lube business and that type of service is really within the wheelhouse of our company,” Teagle says. He also notes that with dealers having to perform more reconditioning work to meet the demands of used vehicle buyers, any program that is able to lower the costs of that work is hugely beneficial, one reason why Mighty has chosen to develop a more economical alternative to using traditional OEM parts.
On the service side of the automotive retail business, Teagle says that because dealers tend to have the most sophisticated equipment, the greatest number of service bays and the most highly trained technicians, there is a significant opportunity for growth in the non-OEM dealer service business. “I think that share of the pie will continue to increase,” he says “but not at the expense of traditional OEM service. I think it will be incremental and it will help dealers improve their retention levels.”
Teagle says that the partnership with WD Co-Auto represents a good match for both organizations. “We have really enjoyed getting to know them,” he remarks “and they match up well with us from both a business and ethics standpoint. I credit them for seeing an opportunity for bringing value for their dealer members and growing the business at the same time.”
Mike Reid notes that through partnerships like that with Mighty Auto Parts, WD Co-Auto’s dealer members can see additional benefits, such as bringing in new customers and boosting their service business, since dealer-operated quick lubes, while technically functioning as a separate business can serve to complement traditional vehicle servicing. “It can drive two-tier service such as alignments, or brakes and even new car sales. It’s very exciting,” he says.
