Since the launch of their online store
under the Car Monkeys brand name in 2013, Car Monkeys Group has subsequently
leveraged their proprietary search and procurement technology (to which the
company has sole and exclusive license) to become a leading U.S. supplier of
quality used car, van, and SUV parts. The ability to exploit a just-in-time
inventory system that reaches out across a network of distributors and auto
dismantling centers, to make available to customers a menu consisting of
hundreds of thousands of parts, has given the company a significant advantage
over traditional retailers who must incur the costs of maintaining a comparable
inventory. The trend towards shopping online is a key growth driver for CKMY as
well, because it makes acquiring parts a breeze, whether the customer is a
mechanic or an individual consumer, and consumers in particular, who are often
new to the practice of acquiring auto parts or who are automotive novices, tend
to really enjoy the no pressure environment of interacting with a website.
Furthermore, this virtualized online
architecture allows Car Monkeys to coordinate a recycled automotive parts
business, sourcing ready-to-ship low-mileage parts that have been run and
tested, which can entice consumers into the model via benefits like zero
shipping cost, a generous 30-day no hassle return policy, and a 5-year
unlimited mileage warranty on all used parts that is unheard of in the industry
today. Car Monkeys’ approach is quite shrewd, taking advantage of an
underserved market by supporting the ever-growing volume of used cars on the
road today, which have not really been targeted by any major players as a
growth market, including dealerships. The majority of the company’s business
thus far has been focused squarely on used engines, transmissions and rear axle
assemblies, where CKMY has spent the majority of keyword advertising dollars
and where the company can most effectively grow their business model.
By purchasing keyword advertising in
this core niche of parts, while also continually growing their supplier
network, Car Monkeys is quickly becoming a profitable conduit, servicing a
largely underdeveloped market full of eager customers. Given that NADA
(National Automobile Dealers Association) data from 2014 indicates that sales
of used vehicles were nearly triple that of new vehicles, at over 42 million
sold in the aggregate, the size of this market is considerable. Consumers can
also feel good about their purchase and how they are getting more life out of
older vehicles through reusing parts, helping to reduce the overall
environmental impact, making CKMY’s venue a solid alternative for pollution
conscious consumers who cannot afford to step into an expensive new hybrid or
EV.
With competitively low prices on parts
and the capacity to offer parts across a wide range of vehicle makes and
models, Car Monkeys is quickly becoming the Amazon.com of high-quality used
auto parts, providing consumers and auto mechanics with a hassle-free shopping
experience and an easy-to-use website interface that allows them to find the
exact part that they need. By inputting the vehicle’s engine type, make, model
and the year that it was produced, customers can instantly access a listing of
parts and accessories that correspond to their specific vehicle. And because
the Car Monkeys website also offers the option to shop by year and part
category, it’s also very easy to simply browse through the entire array of
available parts for a given type.
With tidy revenues of just under $350k
for the six months ended December 31, 2014, up 17.3% from the same period in
2013, on gross transactions of just over $1.2 million, CKMY is moving along at
a good clip, weighed down from a growth standpoint only by advertising
expenditures, supplier payments, and increasingly affordable shipping costs.
Over this same period, CKMY managed to grow gross transactions by 58%, clearly
indicating the health of their business model and the company has redoubled
their efforts by increasing their keyword search engine advertising budget
proportionally.
Take a closer look at the company, or
find that part you need, by visiting www.carmonkeys.com
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