Scrap Car Spotlight 1.4
Scrap Car Spotlight 1.4
Cleveland Scrap Cars is back with our 4th installment of Scrap Car Spotlight, a forum that discusses vehicle scrap news. We seek to be much more than simply the guys that give you a price for a wrecked car and a location to sell your junk car. The year 2015 has continued to be the lowest year for scrap prices in recent memory, in fact, the quoted price for a wrecked car or non-running vehicle is easily 20% lower than in 2012. Our next interviewee is James Pautot, who owns Glendale Auto Wrecking in Glendale, AZ. The city of Glendale was a desert until development began in the early 1900’s and geographically the city is only 9 miles outside of Phoenix. Phoenix has a population of over 1.4M and ranks in the top 10 largest US cities. Glendale played host to the 2015 Super Bowl and its climate is dramatically different than here in northeast Ohio. The average daily high temperature in December is 66 degrees and 67 degrees in January; needless to say that vehicles in this region are not exposed to the horrific snow, ice and road salt that our vehicles experience.
- I saw that Glendale has been in business for over 40 years. What is the secret to your success and longevity?
Watching the markets and listening to our customers. We monitor the trends in the industry through our state association (AARA), the national association (ARA) and trade publications to stay current with what is changing and upcoming in our industry. The only way to stay in business for an extended period of time is continually making changes.
- What are some of the changes in the auto recycling industry recently that you have noticed?
The industry in the last 15 years has matured at a rapid pace and is now recognized for the professional automotive recycling services that are provided across the country. The technology integration into the automotive recycling industry has been the biggest change.
3. Do you see the “self-service” business model as the future of auto recycling? Will the traditional used market model be phased out?
There is a movement currently towards the self-serve business model. It allows for a lower operating overhead with fewer employees but requires a higher volume of vehicles to process. There is a strong demand from the public for self-serve facilities. Traditional full-service facilities will cater to the wholesale repair customers. Finding out what serves your desired customer base the best will be a key to long term success.
- Are there any marketing initiative(s) that you have used lately that was very successful?
Everything is going to online marketing. Traditional advertising that we did 10-15 years ago just does not work as effectively. Take a look at the “Yellow Page” ads that used to be placed for thousands of dollars a month and none of those exist today. Having a functional website that provides customers useful information and the ability to order items is key. We have spent a lot of time and energy on our website glendaleautoparts.com.
- How does your company track its inventory of vehicles and components?
Yard management systems and the utilization of technology are keys to maximizing your inventory exposure. We use Pinnacle Pro and have all of our vehicles inventoried with multiple pictures for our sales staff, product pullers and customers to use to verify the items.
- Are there any things that your company does that are different and unique in the industry (perhaps a certain niche)?
There are many ways to process vehicles to sell used auto components and be successful. We have found that being consistent in our buying, processing and marketing is key.
There were a couple of interesting points that Mr. Pautot brought up. First, he acknowledges that having a quality online presence is critically important and they have allocated significant resources toward its development. Secondly, his company also uses the Pinnacle Pro yard management system. We have noticed that this system seems to be the most widely used among those in the industry. Lastly, he stressed the importance of consistency in the various functions in the business. He is certainly a solid example of this since his company has been around for over 40 years!
We encourage those seeking a price for a wrecked car and those looking to sell your junk car for cash to call us at (216) 282-JUNK or visit our website at http://www.ClevelandScrapCars.com. Our junk car buyer is on hand 6 days a week to pay you cash for cars. We service the regions of Cuyahoga, Lake and Geauga County and free junk vehicle removal and scrap car hauling is always included in the price.