Handling your ‘core’ business
While they admittedly don’t look or smell like greenbacks — in the aftermarket — cores equal cash.
The more you return, the more you earn.
Creating a core management plan in your business will maximize your return rates. To build one, you must educate your staff on the value of cores, promote core acquisition, publicize core return policies and follow through with actual returns.
Core return payments are made with your money; you might as well get as much back as you can.
“We believe tracking cores is no different than managing our accounts receivable,” says Gary Troost, general manager at Valley Truck Parts. “At the end of the day, cores are money.”
Schooling employees on how valuables core are is the first step to building a management plan.
Suppliers affix a core charge to any new or remanufactured product sold that can be used in remanufacturing, and it’s that initial deposit that is returned to you when you return a core.
Most core refund programs work using general acquisition rates. When you purchase a dozen brake shoes, your supplier charges you for a dozen cores.
Matt Colwell, global product strategy manager – remanufactured products at Eaton, says his company has core deposit accounts set up for all of its aftermarket customers. When products are purchased, the deposits are placed in each customer’s account, and core returns lead to refunds out of the exact same funds.