November 18, 2011 at 6:11 pm #10972
I know that some of the GM dealers around here use the ACDelco all makes/economy parts which can be substantially less than OE. Since they say ACDelco, I really doubt that customers realize they are often not getting OE GM parts,
5355 Plainfield Ave. NE
Grand Rapids, MI 49525
Tom@AutoCentricRepair.comNovember 25, 2011 at 6:05 pm #10973
We specialize in transmissions and transmission related repair only. Our gross profit margin is normally 66% (parts cost X 3) however, that’s not always the case on all parts.
What we really look at is total cost of parts as a percent of sales which should be 20%. Some ROs have parts much less than 20% while on others, there’s no way in the world we can keep parts any where near 30%. As long as our overall batting average is 20%, we’re on target.
J. Larry Bloodworth, CMATNovember 26, 2011 at 12:25 am #10975
Using matrix, on the low end 15% tires 25% batteries, with most parts 50-75%November 26, 2011 at 2:30 pm #10977
since you only do transmission work, have you been able to get a enough
of it to stay busy/profitable? I ask because many trans shops have
taken on general repair too, and some wind up doing more general than
trans these days.
What has been you experience with that?
How many techs/builders do you have in the shop?
Thanks.November 26, 2011 at 4:40 pm #10978
Yes, we stay busy. We have 2 builders and 3 R&R techs. We cross the $1M in sales last week. While that may not sound like much to most people, what’s amazing to me is that we did it all out of 4-bay 3K sq. ft. shop in only our 3rd year of business.
The reason transmission shops go into GR work is that they are poorly marketed. They don’t have enough qualified leads, including the larger chains. They simply don’t know how to make the phone ring or get people to come in the door. Often they make the mistake of hiring an “expert” that knows less about the automotive business than they do.
Personally, I don’t like GR work because it’s too many small tickets that has everybody in the business running around like a bunch of chickens with their heads cut off. 25 or more tickets a day is normal for them whereas 20-25 tickets a WEEK is normal for us.
It’s a more sane pace and easier to keep track of everything and what’s going on. Less stuff falls through the cracks. I’d rather have one $3K ticket than 10 $300 ticket.
Check out our website and YouTube channel when you get a chance.
P. F. Infante wrote:
> since you only do transmission work, have you been able to get a enough
> of it to stay busy/profitable? I ask because many trans shops have
> taken on general repair too, and some wind up doing more general than
> trans these days.
> What has been you experience with that?
> How many techs/builders do you have in the shop?
J. Larry Bloodworth, CMATNovember 26, 2011 at 4:47 pm #10979
That is great, and I hear ya about the GR work….What is your average
RO on a trans rebuild?November 26, 2011 at 6:04 pm #10980
$1444 labor, plus parts for most. About $3200. Some more, some less. Dodge diesels $5-$6K. Chev P/U $2500. Prices are really all over the map. Transfer cases are around $1K.
You have to remember that out of those 25 or so tickets a week, half of those are minor stuff where the transmission never comes out of the vehicle. Solenoids, sensors, electrical, fluid & filter changes, leaks, and stuff like that.
Some weeks, it’s like EVERYTHING is minor. 30 tickets and only 1 rebuild. Other weeks, only 19 tickets and 18 of them are major rebuilds. It’s no different than GR: Feast or famine.
J. Larry Bloodworth, CMATNovember 27, 2011 at 12:25 am #10981
Do you sell base price (labor and soft parts), then sell hard parts once
the unit is opened? Or, do you do a complete price right up front?
And, what type of warranty do you provide 12/12 or 3/36 ?
Thanks.November 27, 2011 at 1:38 am #10982
We sell off the RDI method. Check out our website at http://www.CertifiedTrans.com and under our FAQ page it answers the question “What’s A RDI?”. Click on the link to our YouTube channel and you’ll see RDIs in process.
We shoot a Show-N-Tell video of every transmission we do. I’ve been giving a 5yr./50K warranty since ’85. No big deal unless you’re trying to sell transmissions and everybody in the neighborhood is giving their work away. That’s way it always is. It’s no different here. That’s why our competition is starving to death. They give their stuff away and wonder why they run out of money at the end of the month before they run out of bills.
We give shop tours, no negative signs like (Employees Only) on the shop door. We’re a destination for school field trips and the like. We run a very transparent operation and simply sell the work just like general repair has for a century: labor plus parts.
It’s when you comoditize what you do like rebuilding starters, alternators, and engines, (or price off your competition) is where you run into trouble. Thing about it is, the transmission is the ‘last frontier’ with automotive engineering and that’s the only place left to get any big gains in MPG. The engineers don’t know what they are doing; they are just making their best guess with 6,7,8, and 9 speed transmissions. Making it up as they go along.
And like always, us transmission guys will always be there to fix them for what has always been the VERY FIRST BIG TICKET REPAIR on any vehicle, bar none.
J. Larry Bloodworth, CMATNovember 27, 2011 at 7:34 pm #10983
I agree selling from an RDI is the only honest way to do it. Let me
ask, how much of the price does the customer have/know before they give
authorization for the pull and RDI ?November 27, 2011 at 8:01 pm #10984
It depends on how much they ask. Most either don’t ask because they are told that’s the purpose of the RDI, to write an estimate,-or- they’ve already called around.
We had a guy last week that was a hard nose that wouldn’t take anything unless it was a firm written estimate with the transmission still in his truck. So we shot the estimate with the maximum possible hard parts, electronics, and bored & sleeved case and it end up at $4K for a Ford Ranger. Of course we never saw the guy again, but that’s OK, for every one we lose there’s 4 we get.
It’s never peaches and cream at any shop but I think we have it better than most. We have a good market area and a good economy. I Can’t complain a bit.
J. Larry Bloodworth, CMATNovember 27, 2011 at 10:17 pm #10985
Isn’t that an issue when they don’t want to.get it done and it
will cost them money for reassembly and reinstall?November 29, 2011 at 2:23 pm #10986
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.January 15, 2012 at 3:00 am #10992
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.February 21, 2012 at 3:19 am #10995
Hi Ken, Can you use a excel spreadsheet? If so, e-mail me & I’ll
send an example.
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