Key #6 Parts Gross Profit

For this key number, we want to know what percent of parts sales was profit. That is, the total sale price of parts sold minus the cost of those parts expressed as a percent of the total amount of parts sales.

Last month Acme Auto had total parts sales of $23,000.
The cost of those parts was $11,000.
$23,000 minus $11,000 = $12,000 profit.
$12,000 ÷ $23,000 = 0.522

So, our key number is 52.2%

When looking at this number for a typical independent shop which is solidly profitable, this number will normally run between 48% and 53%.

Total parts sales:
Includes all parts of all types, fluids, and shop supplies. Does not include tires.

Gross profit:
The total profit on the sale of something before any expenses or other costs of any kind are deducted.