GUIDES OR ACTUAL FIGURES

[AL HAGER]

LOOKING FOR SOME FEEDBACK ON DOLLARS PER RO ON CUSTOMER PAY?? DOLLARS PER WARRANTY RO AND WHOLESALE/ RETAIL INVOICE. WE SEEM TO STAY AT SAME LEVEL. ALONG SAME LINES DOES YOUR LABOR PER RO MIRROR YOUR PARTS PER RO??

[Mike Nicholes]

Al: your question is one of those that is always hanging around and never seems to get a firm answer. Here is what I can offer you. I do not know of studies that have defined sales per per person by type of sale. In the case of over all sales/person/month the average (and that is a loaded gun by itself) is currently running 25,000-30,000 per person per month. That is defined in Gross Sales. Ford and Chrysler, for reasons know only unto themselves tend to use cost of sales which ignores any effort to maintain a higher gross margin at the point of sale. In addition, if one has a multi-line dealership, the numbers tend to slip a bit and could be considered good at 20-25,000/person/month. If you are heavy in wholesale it can often go higher. We have always used the total number of people working in parts as the 'people' factor based on the logic that it takes the team to back up the heavier sales at the counter. If this helps, good. If not and you want to chat about it, let me know and I will give you a contact number. Mike Nicholes

[AL HAGER]

MIKE I GUESS WHAT I'M LOOKING FOR IS ACTUAL
PART DOLLARS PER RO CUSTOMER PAY. ALSO WHAT WARRANTY PART DOLLARS PER RO??? THANKS

[Mike Nicholes]

Al, one of the figures that I have seen often that is taught by our guys who do the service side is a 1:1.1 hours to parts $ ratio. I hope this helps a bit. If you are still in a mire, would you email a detailed request to rlomni@aol.com and Richard Owen can see that you get the answer.

[RPMGeorge]

Al, our Parts / RO averages 53% as of June. Our Yearly Average ~46.7%. I dont know what the numbers should be in the perfect world, but our averages don't get to a 1:1.1 Ratio. This could be thru the Spread of Service, Repairs & Body repairs. I would be interested in finding out what and how to achieve better Quotas. I also would like to know what the average Cost per Part should be. There are some very confusing numbers out there.

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George Schmitz

[David S]

I think this is what you are looking for. Sorry it took me so long but I have been traveling and it took me a little while to find a dealer that authorized me to reveal their figures. These numbers are for a mid-sized Toyota store in major metro market that definitely has some opportunity.

Customer Pay is an average of $95.43/RO
Warranty is an average of $107/RO
Internal is an average of $83.63/RO
Parts/Labor Ratio is at .63/1.00

Your question is very interesting. How about sharing your averages and in addition I think it would be interesting if we could get others to do the same.

David S

[Gary J. Naples]

Hi Al,

Have you investigated what dealerships like yours are doing in your zone?

Anyway if your looking for generalized performance, log on to the NADA web site (www.nada.org.) Select "Industry Info," then Facts & Figures," then "Parts, Service & Bodyshop." You'll have to do some of the math to arrive at specific ratios, but the site does offer some good information.

As far as your performance staying the same goes, is your parts and service team trained to sell? In other words, what do you do as far as marketing and retailing goes? Don't misunderstand me. I don't condone over selling customers or selling products and services that customers do not need. However, its good practice, good service, and can be very profitable to sell ancillary or related parts and services. For example, if a retail customer purchases brake parts, is a can of brake parts cleaner recommended? Or if a customer is in for service having a front cover seal replaced does the service advisor check to see if the timing belt was ever replaced?

My book (order # R-219) available through the Society of Automotive Engineers (SAE International, www.sae.org) bookstore includes tips on improving performance and customer service. If you wish to speak with me one-on-one, please feel free to contact me at (570) 824-1258, or e-mail me at gss83@aol.com.

Gary J. Naples
GNA

[This message has been edited by Gary J. Naples (edited 07-14-2000).]