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ATLAuto

Parts Matrix for Dealer-source parts?

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Guys, we are having a tough time figuring out mark-up on dealer sourced parts. Currently we are selling parts at DEALER LIST and getting parts at DEALER COST, which is roughly 5-20% below list.

This currently isn't cutting it for us.

 

We have considered using the Dealer Parts Matrix, which I have copied below. The problem is that using this matrix will put most of the jobs we do WAAAAAY above the cost of the dealership, which is not an option. Customers get a brand new loaner car at the dealer. They get free food there. They get factory-trained technicians there. etc. We have a great facility and a great warranty. However, we cannot compete if we are way above dealer costs...

 

So, with that said, what strategies are you using on dealer-sourced parts?

 

 

DEALER PARTS MATRIX

$Part cost Gross Margin Divide By

0.01-1.00 70.0% 0.30

1.01-5.00 65.0% 0.35

5.01-25.00 60.0% 0.40

25.01-75.00 55.0% 0.45

75.01-500.00 42.0% 0.58

500.01-750.00 32.0% 0.68

750.01 and up 28.0% 0.72

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