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Key Numbers 101 Series – Key # 2 Parts Cost
This series includes 24 Key Numbers. If you work on getting all of them in the ranges mentioned, your shop should be solidly profitable.
Key Numbers 101 Series – Key # 2 Parts CostFor this key number we want to know what percent of total sales is spent on parts.Last month Acme Auto had total sales of $50,000Total cost of parts that were sold during the month was $11,000$11,000 ÷ $50,000 = 0.22So 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%.There is a fill in the blank form for this number in our Business Calculators area available to Premium Members.Definitions:Cost of parts: Includes the cost of all types of parts, shop supplies and tires if we are looking at a typical independent shop where tire sales are less than 5% of total sales. (Tire shops and others selling a large number of tires should deduct tire sales before doing the calculation.)Total sales: Includes all parts, shop supplies, labor, sublet and tires.#autoshopcostofpartsCopyright © 2016 Automotive Management Network -
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