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Survey – Parts Gross Profit
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Isn’t that an issue when they don’t want to.get it done and it
will cost them money for reassembly and reinstall?
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I agree with Ron Haugen! We use the same parts matrix for all parts, both dealer and jobber. %50% to 52 % on all except batteries and tires. Did you know the dealer are often times quoting a lower Retail price to us versus what they retail the part through their service department.
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Anyone care to share a mark-up matrix or lead me to a scorce for one?
jon ludwig wrote:
> I agree with Ron Haugen! We use the same parts matrix for all parts, both dealer and jobber. %50% to 52 % on all except batteries and tires. Did you know the dealer are often times quoting a lower Retail price to us versus what they retail the part through their service department.
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Hi Ken, Can you use a excel spreadsheet? If so, e-mail me & I’ll
send an example.
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With tires removed we are always between 58% and 61%
Gerry
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ranges. from 20% for high dollar major assemblies like engines, to 25% on tires and batteries up to 60% for small dollar items. Trying to maintain an average of 50% but it just depends on the mix
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Not quite related, but it kills me when people come in with quotes to install used major assemblies (engine or trans) for an overall estimate that is lower than the All Data or Chilton labor for the job. Now figuring the engine, fluids, and incidentals, you must have guys who are crazy enough to install these for a couple hundred bucks. A transmission, maybe I could see that, but an engine in a mini van? Imo that is a good two days work for a proper job. Thanks but no thanks. So how do you folks mark up used components? On the rare times I do one, it gets a full markup and the customer is told I do the job one time for the money. I do not warranty used assemblies, even if the salvage yard offers a warranty, because they do not cover labor or incidentals. If that motor you brought me from the junkyard has an issue after its in, its YOUR problem.
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Target is 53% to 55% GPM on parts, which we maintain. -
NICE!! Keep up the great work. Curious, What is your target on Labor Margin? Productivity?
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Anyone care to share a mark-up matrix or lead me to a scorce for one?
jon ludwig wrote:
> I agree with Ron Haugen! We use the same parts matrix for all parts, both dealer and jobber. %50% to 52 % on all except batteries and tires. Did you know the dealer are often times quoting a lower Retail price to us versus what they retail the part through their service department.
I’ll be happy to share my pricing matrices with you all. I have quite a few. I advise my clients to target 58-62% GPM on parts, exclusive of tires, LOFS, and dealer parts. When you cannot make it on parts, that MANDATES that you make it up on labor. That is, unless you’re satisfied with single digit NOP.
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50-65
Target is 53% to 55% GPM on parts, which we maintain.
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