Express Factors: Best Route to Car Parts Market

Express Factors can be the best route to a share of a £2.8bn car parts franchise market.

Unipart Automotive says its Express Factors programme can help dealers grab a slice of the UK’s lucrative replacement parts market.

According to automotive research specialist GIPA, this sector was worth a whopping £2.8 billion in 2008, with the independent motor trade taking the lion’s share (approx 52%).

With more than 165,000 parts in its range, covering in excess of 95% of the UK car park, Unipart is arguably the best-known brand in the aftermarket. It launched the original Express Factors programme in 1981 and boasts that it is now ‘one of the most exciting automotive business format franchises available.’

Stuart Sykes, marketing manager at Express Factors, said: “Taking on an Express Factors franchise can be a dealer’s best route to growth and profitability. It is a method of starting a factoring business that minimises risk by adopting a proven business format. It allows the franchisee to work under a nationally recognised brand, to sell competitively priced, good quality parts and to benefit from the economies of scale achieved by Unipart Automotive.”

Success is based on excellence of service in a local area. For dealers a ‘bolt-on’ franchise has two key advantages – lower initial investment and lower operating costs due to more effective utilisation of existing resources.

Barretts of Canterbury has been an Express Factors for more than 25 years. Its parts operation now turns over £700k a year. Mick Hunt, its parts manager, said: “It is a good way of adding profit to the business. The set up cost is minimal, but you will need someone with factoring experience because it is a different working environment.”

Case study: Express Factors Paynes of Hinckley

Express Factors Paynes of Hinckley, a Ford main dealership, added the Express Factors programme in 2007.

General parts manager Russell Astley said: “Our initial reason for considering the Express Factors programme was the increasing number of other makes vehicles that we were handling in our workshops and to avoid having to deal with numerous suppliers. However, it soon became clear that we could utilise our existing resources and assets more effectively and develop a profitable parts factoring business.

“The Express Factors programme is ideal as it provides a complete and flexible package – not just an impressive range of parts, but also marketing support, including branding and regular product campaigns. We were able to get off to a fast start, with an affordable level of investment. This helped us create a new business that complements our existing business. The improved margins in our workshop come in useful as well.”

Getting started 

So how does Express Factors help dealers to get started? Firstly, a ‘Territory Evaluation’ is essential to confirm the viability of a factoring operation.

Stuart Sykes said: “We will work with you to carry out a thorough evaluation of your territory to identify the full potential. We will support you in preparing a comprehensive business plan. Throughout the start-up period we will guide you through each stage to ensure a successful set up.”

This includes assistance with (as required):

• Premises location and layout planning
• Market leading business operating systems
• Optimised stock profiles
• Racking and storage
• Vehicle specification and sourcing
• Recruitment and start up training
• Developing a launch marketing plan
• Financial support (subject to contract and business plan)

“Once your franchise is up and running you will move on to our ongoing support structure,” said Sykes.

“Each franchise is assigned a dedicated member of our support team who will advise on day-to-day operations and help the franchisee get the growth and return from their investment.”