Their service business helps them sell parts and their parts are right next door ! Think of it as a warehouse of parts and the service people are there to help sell their stuff. That makes it a fully functional business that helps compliment their overall sales and this in turns adds value to their total business model. Their not broken like Cramer said. Their models works. This is a good company. All it needs is a few managers there with better people skills and more positive thinking and ideas. I say long term it is a good buy. Their uniqueness make them special.
You are wrong, Cramer is right, I am right.
This is a broken company with a failing business model.
It's model was [started in the depression] and still is:
buy your parts here at a cheap price and do the repair yourself or we'll do it here in our shop and charge you much less than elsewhere.
Now - the parts are not always in stock and they are no bargain -- go to Walmart for that oil filter for a better deal.
Pepboys labor rates are no bargain, and the quality of labor is not much to write home about.
More importantly, the tricks and fear tactics used by the service managers do no leave a customer satisfied nor convinced they did not get screwed over by Pepboys.
And Pepboys can't seem to make much money implementing this business model.
This is a broken company with a very low price stock that is not respected.
I hear you. You need to understand that the auto repair and the auto parts business in general is fiercely competitive. So given the type of environment that they are in, it's pretty much a tough gig. The key here is image. Once you lose it, it is pretty hard to get it back. You are basically saying they are not trustworthy. I suppose I understand where you are coming from. If this company fails, it is simply because of two reasons:
A. they have ruined their image for being honest
B. the industry they are in is really cut throat
I know this might sound dumb, but look at a company called Food Lion. For years and years they did well and so did their stock. Then all of a sudden bad PR came out on a tv show (i think 20/20 or something) that they were bleaching fish in their seafood department. That was the grocery food business but still it was dealing with customers in a retail outlet nevertheless. No one wanted to shop at their stores afterward after this bad PR spread around all over and hence they had to shut down their stores due to weak sales and they filed bankruptcy. So I beg to differ with you on this one. Once your image is shot down, it is almost impossible to get it back. Honesty and integrity is something that is hard to earn and rightfully so. Talk is cheap. You have to earn it.
why do you say their image is shot? They are the complete package;they just need to adjust some prices and lower shop rates perhaps $3-5p.h. This company is profitable and pays a divy. AZO and AAP pays nothing-unsure of O'Reilly's. I see many people go to AAP and AZO for parts to be installed and they can't do it. I live 1 block from each,PBY would do ok here.
People go to AAP because they are a real auto parts supplier. Look at the shelves in PBY, ravaged with callbacks with nothing new sent in to replace them. Repair shops charge for services that are not done, charging for flush and fill, doing a drain and fill at best. Fuel Injection Service, a can of cleaner added to the tank. More time was spent on putting the unused parts back on the parts shelves, then installing them in paying customers cars. Techs make a joke at calling their alignments, park and pray, meaning don't do the job and pray that the customer doesn't notice.
The future of this company, is plywood on the windows
without viewing the almost 2 hr.video, the sidebar news was only talking about Sears.Why would you say Pep Boys rep is worse the AZO or the other competitors for parts? or other garages for replacing parts. Inform me?