DealersEdge Professional Forums

I have heard several different numbers and different theories but i'm not sure if any are correct.
At my store we average 29,000 per employee not counting are driver.
I've been told that number is to low by about 11,000.
But we have a pretty high gross margin over all so we make up in gross profit what we are not doing in gross sales.
I would love to hear some input on this subject from all of you and your sales per employee data if you don't mind sharing it .

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dennis wood

Dennis:

I don't think that there is a right or wrong answer for the question. My experience has shown that a benchmark in this area is hard to pinpoint and the measurement needs to be taken from where you are at and relative improvement. The number swings drastically based on what type of business you do, large volume wholesale, mostly service etc. I have seen different measurements on this ranging from gross per employee, net per employee, sales per employee and all the same by a per counterperson basis. Use your numbers and see what you can do to improve from current unless your staffing levels are out of line and that is for you to judge based on what you see in the department on a daily basis!



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Mike

A rule of thumb use to be $20,000 sales per parts employee/month. That assumed only nominal wholesale business.

Because pricing strategies and therefore gross profit margins vary depending on market conditions, those measures have dropped out of favor as measures of productivity in parts.

More recently, cost of sales has become the measure. In a GM store, for instance, the minumum standard would be $14,500 cost of sales per employee per month if wholesale is less than 40% of total sales. It's $17,500 if wholesale is 40% or more of the total.

Dennis:
Our "Benchmark" Data is based on approximately 2200 Reporting Dealers, representing all sizes and all franchises. The "Benchmark" is the average of the Top 50% of these reporting dealers. Current Overall Benchmarks for Parts Department Productivity are:
Sales/Employee/Mo. - $32,609
Gross/Employee/Mo. - $11,394
We also have "Benchmarks" by franchise group, should you have further interest.
Garry House
NCM IN-House Consulting
NCM Associates, Inc.

are franchise line is dodge chrysler plymouth
i would lve some specific info on our franchise line if it's available.
also is this counting all employees?
drivers too?


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dennis wood

Dennis...
I am "on the road" this week and don't have this information with me. To remind me, Please e-mail doconsult@aol.com, and I will respond to you next week when I am in my office. Sorry for the delay!