Your Source for Up-To-Date News and Research on the Collision Repair Industry 

 

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

Parts.com and eAutoclaims Sign Exclusive License and Joint Marketing Agreement

SANFORD, Fla., and PALM HARBOR, Fla., -- Parts.com, Inc., a marketplace and software solutions provider for the parts industry and eAutoclaims, a B2B Internet infrastructure company that lowers automotive repair costs paid by Insurance companies and fleet vehicles, have announced an exclusive license, relationship and joint marketing agreement.

Parts.com and eAutoclaims have entered into a five-year exclusive agreement whereby eAutoclaims and its 2,500-networked body shops will utilize parts.com's 2,700 nationwide dealers network to procure OEM collision, mechanical and accessory parts. Parts.com will work exclusively through eAutoclaims to bring value to the insurance industry. In a revenue sharing relationship, the agreement allows eAutoclaims South Carolina call center to begin an aggressive telemarketing campaign to sell car dealerships nationwide parts.com's TradeMotion Storefront in an effort to expand parts.com's dealership distribution and reach saturation in every market. Those dealerships that purchase the TradeMotion StoreFront will be targeted to receive OEM parts orders from eAutoclaims and its body shops.

"This is a big win for all of our trading partners and clients," stated Eric Seidel, President and CEO of eAutoclaims. "First, the parts.com participating car dealerships will see a significant increase in the volume of auto parts orders through the parts.com pipeline. EAutoclaims buys millions of dollars in OEM parts every month and we plan on pushing this through the parts.com network. The eAutoclaims networked body shops will enjoy a discount on OEM parts as part of eAutoclaims Member Benefits Program. The discounts will go beyond their current wholesale pricing. This will allow them to compete with the large consolidators who are trying to take away market share from the independent shops. The new Member Benefit will be extended beyond just eAutoclaims repairs and will help the body shops' margins on non- eAutoclaims work. With this new initiative in-place, eAutoclaims clients will share in the discounts, thus continuing to lower their average paid losses when OEM parts are required," concluded Mr. Seidel.

"This agreement brings millions of dollars in demand to those car dealerships which are utilizing our TradeMotion Storefront software," stated Shawn D. Lucas, President and CEO of parts.com. "The agreement will allow eAutoclaims to bring additional benefits to its participating body shops nationwide and should lower the cost per claim of those Insurance companies who partner with eAutoclaims and parts.com. We have developed world-class software in TradeMotion, which both Cap Gemini and Accenture the #1 and #2 consulting firms in the world have approved. However, this is not enough in today's fast changing economy. In order for companies to be successful, they must provide industry specific software, that has been tested and proven, as well as help their customers by bringing them demand. This is where a lot of companies will fail. Technology budgets have been slashed across many verticals and technology executives are looking for proven, cost-effective software that can bring measurable, quantifiable results immediately," concluded Mr. Lucas.

EAutoclaims recently announced a five-year contract with Royal & Sun Alliance (RS&A) Insurance Company one of the top 25 property and casualty insurance companies in the United States. RS&A will utilize eAutoclaims' 2,500 collision repair facilities and its Internet claims application to bring RS&A customers a complete, seamless solution to their loss, while helping those customers get their lives back to normal much faster. eAutoclaims works with several other insurance companies and Third Party Administrators.

"With the recent court decisions dramatically affecting Insurance companies with respect to non-OEM parts, many of our clients have asked for eAutoclaims to create new programs with preferred part pricing," stated Mr. Seidel. "We made the decision to work with parts.com based on their ability to meet several requirements, including parts discounts and local same day delivery. The new program has the potential to add to eAutoclaims profit margin by as much as 2 percent or better. The roll out is expected to begin this month," concluded Mr. Seidel.

©2000 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?