Posts Tagged ‘franchise’

Radiator Distribution and the Franchise Model: Notes from the Front

Friday, October 19th, 2007

Good morning entrepreneurs, radiator repair and car part enthusiasts. As I write this dispatch from the 1-800-Radiator Franchise seat, we are on the verge of opening our 195th franchise territory in the United States and talking to some very sharp Canadian candidates in key provinces. I talk to a lot of people interested in learning about our franchise model. The most commonly asked question is ‘do people really need new radiators that often?’ As we continue to grow we’re seeing Radiator Repair shops that used to fix leaking side tanks and re-core radiators either fall out of the market as newer radiators became the more cost-effective way of keeping engines cool. The ones that stuck around will stock some new radiators or contact a distributor like 1-800-Radiator if their customer’s Honda Accord has a leaking plastic side tank and repair is not an option. The discount radiator market has become a huge niche over the last 20 years or so and 1-800-Radiator has seized upon the opportunity by doing a few things very well.

Our size provides tremendous leverage with cooling part manufacturers who offer us the most competitive pricing on radiators. We’ve also utilized technology to create a robust, streamlined web-based point of sale system for looking up parts, managing customer buying data and running effective sales warehouses. We were also one of the first to jump into the online auto parts market by purchasing several doming names that consistently rank high for retail customers or do it yourself guys that don’t go to shops. Handmade radiators and used radiators are no longer marketable even in the most frugal markets when a brand new radiator can be purchased on one of our web sites and shipped at no cost. Finally, allowing local owners the opportunity to grow a protected territory puts customer relationship building with our wholesale buyers in the hands of highly qualified individuals who have a lot invested in insuring optimum service, competitive pricing and quick turnaround times on customer issues.

Our old corporate distribution model had some junk in the trunk that the franchise model has gotten rid of. As we look to the immediate future, radiators will only be one of several key parts that we sell. Some key acquisitions have ushered in the addition of air parts and radiator component parts such as fan assemblies that out franchise owners will all eventually stock.