Purchasing wheel hubs is a process full of pitfalls that can cost your shop money and clientele, making it important to avoid missteps. In particular, there are four common mistakes that small business owners and their managers make when purchasing wheel hubs. This includes ordering the wrong amount and type of wheel hubs, along with purchasing low-quality parts and using the wrong supplier.
Ordering the Wrong Amount
Knowing how many parts to purchase is a function of the clientele you serve, work volume, seasonality, and your inventory capacity. Oftentimes, this equation is further complicated by price changes in wheel hub assemblies. Ordering too few or too many parts is a common mistake that can hurt your ability to meet customer demand or tie up too much of your money in parts inventory. To avoid this mistake, it’s imperative to use a systematic approach to ordering wheel hubs, along with managing inventory. For example, you can use a Just-in-Time inventory management system supported by inventory purchasing software.
Ordering the Wrong Hub Type
Given the wide spectrum of vehicles on the market, there is also a wide variety of wheel hub assemblies to fit specific types of cars and trucks. The diversity of wheel hubs is so great that it can be easy to make mistakes and buy the wrong models. Having a strong relationship with your wheel hub supplier can reduce the risk of purchasing the wrong parts, because your supplier can learn your needs and help you identify the exact parts you need for the jobs you’re completing.
Ordering the wrong wheel bearings and wheel hubs is doubly bad and can cause all sorts of problems for you and your customers. For instance, you may want to purchase BCA tapered bearings because they are made from case-carburized steel and because they are designed to withstand heavy-duty shock loads. However, not all wheel hubs are compatible with these parts, making it problematic if you purchase bearings and hubs that are incompatible.
Ordering Poor-Quality Parts
Not all wheel hubs on the market are made with the same specifications as original equipment-quality parts. There are used and nonconforming OE parts available at discount prices. Many auto shops operate on tight budgets, and cheap parts may seem attractive at first glance. But purchasing low-grade wheel hubs can lead to poor customer retention, rework, and delays that can grind down your revenues and profit margins, ultimately leaving your business in bad shape.
Using the Wrong Supplier
The purchasing function within your business can impact almost every facet of your operations, including the quality of the service you provide and your profit margins. Your vendor selection process and working with the right suppliers are vital for your company’s survival. Oftentimes, business owners fail to use suitable criteria to select a supplier. They may not even have a standardized vendor-selection process. Selecting a supplier solely on price and using no other relevant criteria is an unfortunate mistake many auto shops make.
When you purchase wheel hubs, there are a lot of factors that you need to consider, because you can make mistakes that impact your bottom line. Avoid making the four common mistakes listed above, and keep your shop in proper financial condition.