Parts $ vs Service $

Parts $ vs Service $

Postby Richard » Fri Oct 31, 2014 10:27 pm

It used to be that you were supposed to sell $1 of parts to every dollar of service. The last several years I've noticed it is changing - now it's like .60 parts versus $1 labor.
Anyone else having this issue/Mind sharing numbers?
Richard
 
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Re: Parts $ vs Service $

Postby Zep33 » Sat Nov 01, 2014 1:23 am

exactly the same with us.

I think a lot of it, at least here, had to do with the push for hours per RO vs Total $ per RO. That's been changing here and the ratio is closing in again.
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Re: Parts $ vs Service $

Postby Mike Nicholes » Sat Nov 01, 2014 3:41 pm

Not surprising since two things have been happening: 1) the flagged labor rate has been climbing faster than profit on parts and 2) because of the trend in quality in the production of parts, the 'rate of use' and replacement is falling.
Mike Nicholes
 
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Re: Parts $ vs Service $

Postby cville1987 » Sat Nov 01, 2014 3:52 pm

Here it's about .55 per $1. Mind you though, door rate keeps going up and if you're a GM store, GM lowered MSRP significantly a few yesrs ago and while I use a matrix, the days of getting away with matrix are numbered due to the age of the internet. Also, menu pricing cutting into prices. So I'm not surprised at all.
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