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Key #2 Parts Cost

Category: Costs

For this key number, we want to know what percent of total sales is spent on parts.


Last month Acme Auto had total sales of $50,000.
Total cost of parts that were sold during the month was $11,000.
$11,000 ÷ $50,000 = 0.22

So, our key number is 22%

When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between 21% and 24%.


Cost of parts:
Includes the cost of all types of parts, shop supplies and tires when looking at a typical independent shop where tire sales are less than 5% of total sales. (Tire shops and others selling many tires should deduct tire sales before doing the calculation.)

Total sales:
Includes sales of all parts, shop supplies, labor, sublet, and tires.

Parts Cost Percent of Total Sales Calculator