How to get your product into Advance Auto Parts
- Understand you client: Before you spend a lot of time and money creating a product, you should know if anyone will want to buy it. Learn more about Market Research
- Learn if it’s protectable: Know if you can defend your product against cheap copies if it gets knocked off. Learn more about Copyright and Patent your product
- Test your product: Make sure that there’s a demand for your product and the customer understands what you are selling when it’s on the shelf and nobody is there to explain it. Learn more about Product Testing
- Perfect your pitch: Before you speak to decision makers, know your numbers, know your retailer and know your logistics in and out. Learn more about Pitching Your Product
- Don’t do it alone: If you haven’t been successful in retail before, a secret of success is that you can’t do it alone. Having great sales staff, customer support and marketing partners can take you from zero to success faster than if you tried on your own. Learn more about Retail Partnerships
Information On Advance Auto Parts
Founded in 1932, Advance Auto Parts, Inc. provides automotive aftermarket parts in North America, serving do-it-for-me (Professional) and do-it-yourself (DIY), customers.
The Company’s stores and branches offer a selection of brand name, original equipment manufacturer (OEM) and private label automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks. It serves through various channels ranging from traditional brick and mortar store locations to self-serving e-commerce sites.
Advance Auto Parts, Inc. (Advance) is a leading automotive aftermarket parts provider headquartered in Raleigh, N.C., that serves both professional installer and do-it-yourself (DIY) customers. As of July 13, 2019, Advance operated 4,912 stores and 150 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves 1,250 independently owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos and British Virgin Islands.
The automotive aftermarket in the United States is estimated to be worth $318.2 billion (2013), contributing more than 2.3% to GDP. The aftermarket employs 4.2 million people who work at manufacturers, distributors, retailers, and repair shops. Advanced Auto Parts has shown itself to be very relevant in this billion dollar industry. As there are millions of automobiles on the highways and garages in the United States, this market remains scalable. More, the emerging trends of automation and energy sustainability can only do more to push for more demands out of automotive aftermarket products manufacturers.
You are a vendor; it is essential to know that you need a unique selling point. This is what makes you different from the other suppliers or vendors. The industry is wide. A lot of cars are placed on mass production and custom orders by the years and you don’t want to be a stub in the industry. Look at your market offerings and see what you can offer differently. Improve on your current product offerings and make them more attractive to customers. You can always carve a unique point for yourself by trust and superb customer service. Once your customers can have trust in your products, it won’t be difficult for you to get more customers out of recommendation by current customers. It is vital to keep up quick with trends in the industry.
Advance premiered on the Fortune 500 list of companies in 2003 at No. 466 and has remained on the list since that time, including ranking No. 326 on the 2019 list. As of June 2014, it was ranked at No. 1,412 on the Forbes magazine “World’s Biggest Public Companies” list. Soon after, Advance Auto Parts was bumped to 2nd largest automotive aftermarket retailer by competitor, AutoZone, and has held that that position as of July 2018.
Becoming An Advance Auto Parts Supplier
Advance Auto Parts has its own vendor portal and this can be found by going to the Vendor Reference Center on their corporate site.
You can also reference their shipping requirements guide to discover more information regarding your product and Advance Auto Parts.
Within the Vendor Reference Center, you should be able to hover over the section in order to access the Vendor Reference Guide. Clicking onto the EDI Documents section you’ll be able to access the Advance Auto Parts Shipping Specifications.
Within the Vendor Reference Center, you should be able to hover over the section in order to access the Vendor Reference Guide. Clicking onto the Electronic Parts Catalog section you’ll be able to access the Advance Auto Parts Shipping Specifications.
Within the Vendor Reference Center, you should be able to hover over the section in order to access the Vendor Reference Guide. Clicking onto the Factory Direct Ordering section you’ll be able to access the Advance Auto Parts Shipping Specifications.
Within the Vendor Reference Center, you should be able to hover over the section in order to access the Vendor Reference Guide. Clicking onto the Transportation section you’ll be able to access the Advance Auto Parts Shipping Specifications.
Do not trust any “list” of buyers.
Typically retail buyers change either companies or positions every few years. This strategy helps retailers know that their buyers are not taking “kick-backs” and are selecting the very best product for the very best position each time.
Buyers are typically held to a very rigorous standard of sell-through volume that they must hit and because of this they are risk averse. Your job as a supplier or vendor is to convince them that the buyers going into the stores not only know about what you’re selling but are actively seeking the product in the store currently.
Sometimes easier said than done, however you must get on Advance Auto Parts’ radar.
Call the Advance Auto Parts’ corporate phone number and ask for the names of the buyer and assistant buyers in your category.
Always leave voicemail with whomever the dispatch will connect you.
Use that information to connect with them on LinkedIn, RangeMe and any other professional social platform.
Ask your representative at your trade bureau to connect you to the Advance Auto Parts’ buyers as they will potentially have a better history.
Use advertising, public relations and marketing to make your brand known to Advance Auto Parts’ buyer through 3rd party websites & industry media sources.
Be everywhere that they look, the key is to position your brand as the obvious choice when Advance Auto Parts is looking to either refill a slot or create a new category.
Latch on to the news of the day and any trend that will make your product fill that niche whether that be Non-GMO or Vegan Leather for example.
Investing in your brand can only benefit your opportunities in the future. As being “top of mind” will have a ripple effect when you physically present your product at a Advance Auto Parts buyers meeting or trade show in the future.
Advance Auto Parts buyers typically got to their position by picking “winners” and know how to see through the fluff.
Focus on the numbers, know your bottom dollar during a negotiation and how fees and chargebacks may cut into your position.
Know that long term success may outweigh short term sales, however financing large purchase orders from Advance Auto Parts when the net result is negative is not sustainable.
Understand the playing field and the other brands that are in your space, what they are offering as promotion and pricing and how you can stand out against them.
By knowing that each buyer at Advance Auto Parts probably knows more than you do, take an active listening approach to sales and understand that no is a perfectly acceptable answer that may have saved you millions of dollars on the backend.
How to Submit a Product to Advance Auto Parts
There are several ways to get a product placed in Advance Auto Parts. However, most entrepreneurs only dream about getting their product distributed to major retailers, few actually do it. We have experienced a significant rise in interest since the show Shark Tank started airing on NBC. Mr. Checkout has had the pleasure of working with a few Shark Tank success stories such as KISStixx and 180 Party Cups which are now currently being distributed around the country to stores like Walmart, Target, Kroger, 7-Eleven and more.
If you envision your product would be a good fit for Advance Auto Parts, we have a few steps to help you get your product on their shelves.
Here are the 6 steps you need to take to have your product placed in Advance Auto Parts.
1. Start with the right questions.) Before you try distributing your product to Advance Auto Parts, you need to ask yourself a few basic questions. Do you need to build demand for your product, or is there already a demand for it? Do you know that Advance Auto Parts would be interested in selling your product? If you can strike a deal with Advance Auto Parts, can you handle the production volume? Do you want to sell directly to Advance Auto Parts, or do you want to license your product to a manufacturer that will handle distribution?
2. Be prepared to profit.) Does your product offer enough of a profit margin for Advance Auto Parts? Can you sell your product at a reasonable enough profit to cover the packaging, shipping, commissions, marketing and wholesale distribution? Check Advance Auto Parts’ guidelines for other fees that you will have to build into the cost of your product in order for you to be able to turn enough of a profit to make the effort worth your while. If you work with a discount retailer, they will try to strip your profits down to zero in order to keep their prices as low as possible.
The typical breakdown of margins are: If a products costs $1 to produce, that product will retail for $4. That product that retails for $4 will wholesale for $2 to distributors and stores that purchase direct. Big box retailers like Advance Auto Parts may offer to pay $1.25 to the manufacturer if the product costs $1 to produce. That is the typical profit margin.
3. Determine if Advance Auto Parts is the right store for your product.) The relationship between you and Advance Auto Parts starts with you browsing their store for competing products. If Advance Auto Parts already has a similar product, it is going to be very difficult to get your product picked up. Spend some time at your local Advance Auto Parts to see what kind of products they are selling, speak to the manager and see if he thinks your product will sell well in their store. Picture in which zone your product would best fit on the shelf and keep in mind that the most precious asset that these big box stores value are their shelf space. Keep this information in mind when you are preparing your presentation to Advance Auto Parts.
If your company is minority or women owned, check Advance Auto Parts’ website and see if they offer specific opportunities for those designations.
4. Pitch your product to Advance Auto Parts.) Decide whether it will be you or a representative to present your product to Advance Auto Parts. Your presentation depends heavily on your strengths as a businessperson as they will most likely ask financial questions and logistics questions.
It’s common for companies to hire a broker to pitch their product to Advance Auto Parts, as it will be more likely that your product will make it to the next stage if the individual pitching your product has industry knowledge or a personal relationship with Advance Auto Parts. The percentage of commission verses, however generally a broker will take around 5% to represent your product to Advance Auto Parts.
We at Mr. Checkout have experience dealing with brokers and know that there are several retail brokers that have poor business practices that can potentially damage your brand. If you are seeking a legitimate Advance Auto Parts broker, please give us a call for a recommendation. It could save you a huge headache and a lot of money.
5. Complete the required Advance Auto Parts paperwork.) Often Advance Auto Parts will have you go through an application process. However, before submitting the paperwork required by Advance Auto Parts, you should contact a buyer at Advance Auto Parts and let them know your intentions. Having a contact inside of the company will potentially move your application more smoothly through the process.
6. Anticipate the need for increased volume.) Having Advance Auto Parts agree to stock your product will most likely mean a significant increase in volume. You should be prepared to ramp up your production and informing your manufacturer of this opportunity.
Having production, logistics and distribution to sync is not only difficult, it requires a significant amount of time invested in customer relations. Also, Advance Auto Parts may have stipulations in the contract that may penalize you for delays in shipping and production. Have an attorney explain all contracts to you if you don’t understand the terms.
If you’re looking to sell your product to Advance Auto Parts, be sure to thoroughly assess the marketplace, carefully prepare for production growth, and take full advantage of resources available to help you grow your business.
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