Parts pricing is often a contentious subject that will evoke many opinions and can lead the discussion in many ways. Mercedes-Benz, for example, has close to 300,000 part SKUs. Does that mean a dealer should sell all 300,000 parts at the same price or discount level?...
If you take a step back and look at the daily activities of a parts department, it’s typically measured in sales: but at what cost? In other words, what did it take in terms of time spent to achieve those sales? Many Parts Managers are leveraging technology, not to...
FACT: Wholesale parts sold through a new car dealer is typically 85% Collision & 15% Mechanical. FACT: The on-hand inventory at a typical dealership is 85% Mechanical & 15% Collision. Wholesale parts are one of many sales channels that parts managers have...
When cars in your local market drive across your dealership’s service drive, the dealership hits a double home run. Sell the labor at a respectable profit margin, typically 70% margin or more, and you sell a part that goes along with that repair at about a 35-40%...
Whether you’re the General Manager, Fixed Ops Manager, or the Parts Manager, we can all agree that it is harder than ever to generate or even retain profit margins in our new car dealerships. However, Parts Managers have the uniquely difficult problem of overseeing...
A lot of GMs don’t spend enough time with the parts department to understand how everything works. With so much focus on vehicle sales, the parts and service department ends up taking a backseat to dealership operations. It ends up hurting the dealership as a whole...
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