SEMA News—June 2015
BUSINESS
By Chad Simon
Retail Spotlight
H&H Classic Parts Perseveres Despite Changing Business Climates
|
During H&H’s infancy, the elder Smith also owned an automotive service center. It housed H&H in a small room, but he sold the service center in 1993 so that he could concentrate on growing H&H. Soon after, the company added 7,200 sq. ft. and expanded again last year by 13,000 sq. ft.
Today, H&H is a family-owned retail mail-order company in Bentonville, Arkansas. It has seven employees and is located in a 24,000-sq.-ft. facility that includes a warehouse and showroom.
The company specializes in selling more than 20,000 parts from more than 150 manufacturers for Tri-Five Chevrolet cars, ’55–’72 Chevrolet and GMC trucks, Impalas and GM fullsize cars, ’58–’70 Chevelles, ’64–’72 Novas and ’62–’74 Camaros. It will soon add ’67–’81 Camaro components.
Overcoming Challenges
Since ’95, H&H has achieved success by catering to an older demographic of Chevy enthusiasts. Sales were up 120.8% but, as with many other companies, the 2008 recession brought sales to a crawl. H&H is a discretionary business, so it saw as much as a 20% drop during that time, according to Tray Smith. It still hasn’t all returned, but the company is within 5% of its 2007 peak.
| H&H Classic Parts 12325 Hwy. 72 West |
In addition to outlasting the recession, it’s challenging from a sales standpoint to find a customer who’s willing and able to spend money on hot rods and classic cars and then take care of and retain that customer, according to Smith.
The greatest long-term struggle is what Smith and many others call “the graying of the industry.” Most of H&H’s customers are 45 and older, although Smith is starting to see younger guys ages 25–40 taking an interest in some of the Novas and pickups.
“I’m 40 years old, and I’m considered a young guy in this business,” Smith said. “As an industry, to attract a younger demographic, we have to be willing to adapt to what they’re interested in. It’s tough to get a 16-year-old kid to come out and build a Tri-Five Chevrolet car, because they can’t afford it. We have to adapt to newer model years and different types of cars to stay relevant. If we don’t, we’ll see this industry disappear. It won’t disappear tomorrow; it’s a long-term thing. It’s a tough sell with some of the older members of this industry. Sometimes we get tunnel vision and are focused on only the now instead of 15–20 years from now.”
| |
| Last year, H&H added 13,000 sq. ft. to its facility, including a new showroom. | |
Another challenge facing the industry is combating harmful legislation passed in Washington, D.C., such as stringent ethanol requirements and limited off-road access to public lands. Smith currently serves on SEMA’s Automotive Restoration Market Organization (ARMO) as the legislative committee chairman.
“It’s something I believe in whole-heartedly,” he said. “If we as an industry don’t make noise about what we feel is wrong politically, we’re going to get run over.”
Provide Personal Service
The level of personal service H&H provides is what sets it apart from its competition, according to Smith. Many companies today are being bought up by investment groups and turned into conglomerates. As a result, customers lose out on one-on-one service. Even though Smith is an owner, he always makes himself available to personally help his customers whenever necessary.
“We do our best to make an investment in our customers,” he said. “We understand that they have a choice of where they go to spend their money.”
| |
“Being able to go out there, even for just five minutes of face time, is golden,” he said. “It puts a face to the voice and the money you’re spending with them.”
Smith and his team are set to attend 20 events this year in their mobile warehouse, which is filled with 4,000 to 5,000 different products of the 20,000 they sell. These opportunities will bring them more face time with their customers, since there’s a segment of the market that will buy product only after they see it firsthand.
Another factor that sets H&H apart is its fast ship times. Orders placed on in-stock items are out the door the same or following day. According to Smith, 99.8% of everything going out is correct and damage-free, and the company’s return rate is miniscule.
Looking Ahead
Smith said that H&H will begin to focus more on the Camaro and ’80s trucks because of the plethora of parts available and their numbers on the road. The company had plans to expand its reach several years ago, but those plans were put on the back burner when the recession hit because H&H was just trying to survive. Now that sales are picking up and people have more discretionary income to spend on their toys, Smith believes it’s time to expand into different products to meet customer needs.
Smith advised that novice retailers get to know their product before they sell and stressed the harm caused by giving it away.
“A lot of guys come into this business in the small end of it, and they feel like they have to give product away in order to make a sale,” he said. “It does nothing but hurt the industry. You don’t have to be the highest-priced guy out there; you don’t have to be the cheapest guy. Let the merits of how you do business make the sale for you. Get to know your product. Don’t just go out there and sell it. Don’t be afraid to say, ‘I don’t know, but I’ll find out.’”


_opt.jpg)
From the very first SEMA Show in 1967, hot rodding has remained a highly influential niche within the specialty-equipment marketplace. That heritage was again on display at the recent SEMA Show’s Hot Rod Alley, where attendees were able to examine first hand the amazing parts and craftsmanship that go into custom-built rods. These are vehicles that can trace their lineage from post-WWII dry-lake racing, through the street scenes of the ’50s and the ’70s musclecar era, to the restomod movement of today.
McLeod Racing LLC
McLeod’s Nodular Iron Flywheels are a high-quality yet low-cost alternative when replacing a flywheel. Being Nodular Iron, these flywheels are stronger than the OEM units and can handle higher-horsepower engines.
Now convert your Chevelle to hydraulic clutch actuation without all the hassles. Our kits are perfect for builds where the factory linkage may cause clearances issues.
Marquez Design introduces another innovative product for Chevrolet/GMC trucks and related models. Full wrap, top to bottom door panel. The new door panel can run manual-crank windows or upgrade to power. Factory felts and door handles can be used. It is a hand-laid fiberglass part that can be upholstered or painted.
Keg Media Digital Garage
All Sales
All Sales Mfg. (AMI)
Bob Drake Reproductions Inc.
The SN74Z speed-signal Interface is designed to accept a variety of signals and convert them to work with most aftermarket speedometers and tachometers. Setup is easy with the onboard LED screen, pushbutton and several calibration options for speedometer or tachometer operation.
QA1
Upgrade the interior of a ’63–’67 ’Vette with Classic Instruments’ new instrument package. The package fits into the stock dash bezel and is available in 16 different series. The electronic gauges are perfect for modern drivetrain swaps, and all sending units are included for an easy installation.
Power Steering Pumps
A ’55–’57 Chevy pickup aluminum-core support/radiator/electric fan/shroud, relay package—made to cool any horsepower. Stock mount yet designed for extra clearance from the support to the motor. Comes with A/C condenser and trans cooler optional. Made for LS, big-/small-block, polished or unpolished.

The exact Ford A Model generator look with major engineering changes inside to give users modern alternator performance. Fits existing ’29–’31 brackets. Half the weight; billet aluminum. Huge amp increase compared to original. One-wire hookup. Available in 12V (90A+) and 6V (60A+). Durable black-powdercoat finish. Made in the U.S.A.
Direct bolt-in replacement power rack and pinion for ’79–’93 Mustang and street-
Vintage Air Inc.
VDO Instrumentation
Vintage Air Inc.
Coker Tire
NuRodder Series Smoothie Wheel
PN: 50145
MB Marketing & Manufacturing
Viking Performance Inc.
ididit Inc.
One part number gives users a complete kit with everything needed to accessorize an engine with American-made billet-aluminum and new, name-brand components. The kit offers a simple, hassle-free installation, a sleek, compact design and a brilliant show-quality appearance. Offered in a brightly polished finish or in a variety of custom colors.
Dakota Digital
NotcHead
Rocket Racing Wheels
Steele Rubber Products