DealersEdge Professional Forums

HOW MUCH SHOULD A PARTS MANAGER MAKE?
SHOULD IT BE OFF GROSS PROFIT?
SHOULD IT BE ON NET PROFIT OR BOTH?
IF YOUR PARTS DEPT GROSS 100,000. A MONTH
WHAT SHOULD A PARTS MANAGERS INCOME BE.

It depends on what the dealership's needs are. Are there areas that need correction (Obsolesence, CSI, recover lost business, poor employee performance)? The dealership needs to determine what its needs are and then build a compensation play to address the issues.



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Bob Van Der Ploeg
bob@worldparts.com
http://www.worldparts.com
ICQ: 7660816

I don't believe a Parts Manager should ever
be paid on gross. It should always be net.
But I'd like to be paid on gross. I could spend a ton of money advertising to increase
sales but the net would not increase.

So if you would like let's compare!

I'm in New York. I sell app. $200,000.00 a
month. I net about $40,000.00. I'm paid
$625.00 a week and 9% of the net. I'll save
you the math. I make about $70,000.00 a year.
I have a demo and my insurance and dental is
paid for.

I feel this is a fair pay plan but of course
like everyone else I want more

Another thing to consider is your payroll
expence. How many people do you have? I run
my operation with one other man and a driver.

As Chrysler say's...Good luck and good selling!