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Green parts prices - are they falling?

green parts
Select Vehicle Spares' Jon Caunce sees a link between delivery issues and prices.

Does a lack of cost effective national delivery services contribute to the falling prices of green parts?

Although we have covered topics relating to this in the past, Jon Caunte, Director at Select Vehicle Spares, recently brought this issue to our attention. He wrote, “Due to the problem with posting large panels, the price of 'Green parts' such as doors, bumpers and wings have had to be reduced as the market is much smaller. This is because they have to be collected by customers locally, normally within a radius of 50 miles. Due to space constraints we are regularly scrapping perfectly good panels, as I'm sure many other dismantlers are.”

Jon goes on, “Without a cost effective national delivery service for these types of large panels, green parts will remain a small market in my opinion.”

Jon said, "It is difficult to put a figure on how it affects our business financially but I know we are selling these 'green' parts for less and selling less of them due to the market being smaller as we are restricted by location."

His suggestion is to follow the business model in the USA for the UK green parts market to grow. What type of courier network do they have? Is this restricted to a localised area? - a topic ATF Professional will cover soon.

We spoke to Mike Morton, Operations Director at Direct Courier Solutions. He said that it’s a minefield, used car parts is specific but it comes down to packaging.

Items need to be well packaged and this is down to the customer and not the courier company. If parts are packaged together or have ill-fitting packaging then goods are knocked about and damaged. Liability is covered by Direct Courier Solutions providing items have been packaged adequately.

And according to David Goodlife, Project Manager at Partspeed Ltd, if a customer requires a unique part then they will be willing to pay the cost of delivery on top but he does say that due to the increasing volume of postal usage (more people shop online these days!), the service levels are not keeping up with their demand.

Bumpers and doors are a problem class as they are unconveyable, meaning these items don’t have standard packaging and need to be manhandled, in particular items with glass.

David suggested that the best option is to send out your own parts with your own delivery vehicle. And being a large enough company, parts are being sent out frequently and more important cost effectively. He says, their company van is filled up (usually 28 packages in total) and sent out over a 48 hour period around the country for a door to door service. Delivery prices are charged accordingly and customers are willing to pay if the part is unique.

Having your own van or delivery vehicle seems to be the answer in getting your parts delivered intact. Not only this, but delivered door to door and the responsibility lies with the seller and no one else. This idea works well if you are a large enough company and can justify your own delivery vehicle but what if you’re a small company?

David’s idea was to start to think cooperatively. They (ATF’s) all have vans on the road. What if there was a collective between all ATFs? Maybe in the future - watch this space!

If you have any thoughts or suggestions on this topic, please let us know at ATF Professional.

July 2017

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