90% Parts GP? Where did I go wrong?
Is our 50% or so parts GP a flop? According to some it is. Two conversations that began by discussing matrices:
1: “They don’t use one at our shop. They sell all parts at O.E. suggested list price. Then they shop for the cheapest part (brand etc. is irrelevant) in town. If a brake rotor is $100 list for an O.E. part at the dealer and we can find one for $10, then we sell it for $100.”
2: Him: “We don’t use them at our shop. We multiply everything by three (X3).”
Me: “What about more expensive parts, especially ones from the dealer?”
Him: “Doesn’t matter…everything is multiplied X3.”
OK…so #2 is only at 66%. Still a lot higher than me! Are my sights set way too low?