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Hello there.........

 

This is my first post and I wanted start by thanking you all for the wealth of information and insight available through this forum. I hope that eventually I'm be able to share some of my own insight with fellow members.

 

I have a quick question regarding stocking inventory and I apologize in advance if this has been covered in previous posts (I tried searching but was unable to find any answers to my specific question).

 

Ill try to be brief:

 

We've been in the business for roughly a year and a half and it seems I've hit a brick wall when it comes to controlling COGS. We are doing quite a bit of brake work, so I'm going to start by focusing on the profitablility of that service. I've recieved pricing from a few different vendors for brake pads and it looks like I could save anywhere from $5 - $20 per set if I buy in bulk. It has been suggested that I need to carry around 100 SKUs to achieve a respectable rate of coverage. Does anyone have any thoughts on this topic? I realize the vastness of brake part applications on todays vehicles, so my assumption has always been that this is a fools errand. However, if im able to sell a job based on the availability of parts and speed of service, while at the same time achieving lower COGS, its a win win. The pads we currently install meet or exceed OE and I have no intention of trying to expand margins by installing a lower grade pad. This is simply out of the question. Any thoughts or suggestions would be greatly appreciated.

 

Thank so much!

 

 

Edited by SACTO AUTO

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