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Page 1 of 2 When Armen Kazaryan speaks about his Southern California company, Hi-Teknet, he can barely contain his enthusiasm. He believes that Hi-Teknet will revolutionize the used/salvage parts industry by eliminating the middle man. At Hi-Teknet, the buyer is mated directly to the seller.
A major selling point of Hi-Teknet is that it is a live network, not inventory based. There is a facilitator on the network at all times - 24/7. When a request goes out for a part, sellers respond in real time with parts that are currently available. Depending on the part, buyers often have a choice between different vendors and price points. Once a buyer and seller agree to do business, the buyer can negotiate with the seller to reach an agreed-upon price. The transaction takes place between the buyer and seller either via instant messaging on the internet or by phone. Hi-Teknet does not get involved in the deal unless mediation is necessary. Invoicing takes place directly between the buyer and the seller. And Hi-Teknet does not collect a commission on the parts. Once the network seller acknowledges the part is available and agrees to the transaction, he may not back out. The price is guaranteed and the transaction happens instantly. Parts are delivered free of charge to the buyer -- a huge, cost-saving benefit. Hi-Teknet is composed of auto body shops, mechanical shops, new car dealers and insurance companies. They all have direct access to the source of a part. It is designed exclusively for the auto repair industry. Network sellers are all local southern California wrecking yards from San Diego to Fresno. What's out there now Current networks connect salvage yards to other salvage yards. If a body shop is looking for a part, a call is made to one of the yards. If that salvage resource doesn't have the part, a request is put out over the network to locate the part. The buyer is not included in this process. According to Kazaryan, the yard that made the request will likely add a percentage to the cost of the part before it ever gets sent to the buyer. In addition, parts can come from anywhere in the country, so shipping charges accrue as well. With all these different parties involved, payment can take as long as 45-60 days. After all this, by the time the insurance company approves an estimate, the part may be gone and the whole process begins again. Strict oversight Kazaryan has certain standards that the sellers must adhere to. For instance, orders must be filled within 48 hours. There is a rating system on the web site to evaluate the vendors. If deliveries are late, the vendor will lose rating points. If a vendor has too many complaints within a 30-day period, he will be notified that changes must be made. If there is no improvement after 60 days, the vendor is out of the network. In addition, if a check bounces, the culprit is out of the network -- no questions asked. Kazaryan is strict so that everyone can do business freely and with respect for one another. Cost of membership So what does it cost to participate in the network? Whereas other networks charge a large set-up charge and as much as $500 a month, membership in Hi-Teknet costs merely $25 per month, with the first 90 days free. If a participant is not happy with the service, no harm, no foul. There are no contracts and members can leave if they are not 100% satisfied with the services Hi-Teknet has to offer. Quality parts In addition, Kazaryan asserts that all are "quality parts, not junk. I know everybody and I know what they can do because I have been in the business for 15 years. That is the reason I created this network." Kazaryan's background includes owning a body shop, a salvage yard and working for a life insurance company. As a hobby he builds race cars and races them at tracks around southern California.
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