The parts department has always been an important part of a dealership, but it often worked quietly in the background. In the he parts department has always been an important part of a dealership, but it often worked quietly in the background. In the Parts managers can sell parts to a global audience, competing with aftermarket retailers that operate around the clock. As Scott Lindwall, Fixed Operations Director for Bommarito Group, explained, “Our competition isn’t just the dealership down the street anymore. It’s the aftermarket businesses that are working 24/7. We have the tools to do the same—and do it even better.”
To succeed with selling parts online, parts managers need to think of their department like a small business. That means making smart investments in inventory, marketing, and selling tools like an online store. Sure, this means forsaking the old ways and trying something new. But in Scott’s words, “Taking risks is part of being great.”
Manufacturer kickbacks reward dealerships for hitting parts volume goals. When managed well, these kickbacks can bring in a lot of extra money that helps the parts department’s profitability and the dealership’s overall goals.
Many manufacturers offer programs that return 1-2% of the money spent on parts if the inventory is managed properly. This is often called a “return reserve,” and it’s a way for dealerships to earn back cash, especially at the end of the year, if they keep their inventory clean and organized. “Think of inventory as piles of money. The faster you move it, the more money you make. Clean, quick-moving inventory is the key to success,” said Scott.
In addition to the return reserve, manufacturers may offer bonuses for meeting benchmarks, such as hitting certain sales targets or increasing order volume. These benchmarks can unlock marketing money, usually around 3%, that can be used to promote the dealership. In some cases, dealerships have earned as much as $70,000 a month from these kickbacks, which adds up fast when the parts department is bringing in higher sales volumes.
By adding a few hundred thousand dollars in extra parts sales, the dealership earns more reserves and benefits from extra cash flow. This money can then support other areas of the business, such as improving tools, hiring staff, or boosting marketing efforts.
Manufacturer kickbacks are more than just a bonus—they’re a way for parts departments to lead the way in driving revenue and supporting the entire dealership.
A great parts department starts with a great team, but many dealerships don’t give employees the support they need. Most new staff members only get a brief introduction to their job and are left to learn on their own, which doesn’t set them up to succeed. Scott believes managers should focus on building strong teams. “Set them up to be on a winning team,” Scott said.
Employees need to feel valued and know how their work fits into the bigger picture. Managers can help by providing training, sharing clear goals, and giving workers the tools they need to excel. Offering bonuses for good work and teaching employees about other departments through cross-training can also help teams grow stronger. Scott explained, “your bottom line is your front line, and your people are your front line.”
Scott also highlighted the need for technology. He says tools like eCommerce platforms, inventory management systems, and consulting services are key for growth. These investments are critical for staying competitive. “General Managers need to trust their operators on the tools they need,” Scott explained.
Parts employees today do more than just take orders — they provide customer service. Since many shoppers don’t know much about car parts, employees must explain, in a clear and kind way, what the parts do and why they matter.
Patience is another essential skill. Customers may not know the right terms or exactly what they need. A great parts employee can guide them through the process, making sure they leave with the right part and a positive experience. Whether the customer is chatty or in a hurry, employees must adjust their approach to fit the customer’s needs.
Scott also pointed to the importance of building trust with parts shoppers. “I spend money with folks I trust,” Scott said. Building relationships with customers and providing excellent service creates loyalty. Empowering employees to take ownership of their roles and make decisions helps build this trust.
• Power in Fixed Operations: Car sales aren’t as profitable so dealerships now rely more on parts and service for income.
• Greater Recognition for Parts Department: Parts departments are finally being seen as an essential component of a dealership’s success.
• Growth Through eCommerce: Online tools are creating new ways to reach customers and grow sales.
• Rising Customer Standards: Customers want fast, reliable service, and the parts department can meet those demands.
When the parts department does well, everyone at the dealership benefits. Strong parts sales pay for dealership costs and make it easier for other departments to succeed. Clean inventory and high sales can also earn bonuses from manufacturers, putting extra cash back into the business.
With the right approach, leadership, and tools, your parts department can lead the way in 2025. Now is the time to take advantage of the opportunities ahead.
Mike King’s life has always revolved around cars. From his early days in shop overalls to 25 years behind the parts counter, he’s a true automotive enthusiast. In 2009, Mike co-founded Quantum Sales, growing it to nearly $5 million in annual sales before selling it to Tasca Auto Group in 2014. He then helped build Tascaparts.com to roughly $25 million in annual sales. A drag racer turned road racer known as “Boris King,” Mike now channels his vast experience into RevolutionParts, helping others succeed in the parts industry. In his free time, he enjoys restoring his ’67 Chevy Nova and ‘64 Ford Fairlane, traveling, good food, and spending quality time with his family.
