The Sum of Parts is Greater than the Whole – At Least in Dismantling
Willis came into this industry as a dismantler, but he didn’t just dismantle cars, he did the parts too. Generally, when customers came to buy parts from dismantlers they got the whole package, whether they wanted it or not. Willis did not see any sense in customers paying $400 for a fully dressed motor with the alternator, starter, and other parts still hanging on it when the customer already had a working alternator.
Willis decided to make a change. If a customer went to Mather, he or she could buy just the motor for $275 and alternator for $25. When wrecked cars arrived at Mather the additional parts were taken out, restored and sold separately. By the time he was done he could get double the amount for the same parts, and the customers were happier. “This caused my profit margins to far exceed that of my competitors,” said Willis.
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