DealersEdge Professional Forums

Hi everybody ! I have a simple and easy request. What is the average gross profit percentage everyone is getting on wholesale parts?

18.5% YTD through March. We are a medium size Chevrolet dealer.

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Alan1149@aol.com

We get 18%. We are a small Cadillac dealer surrounded by BIG chevy wholesalers. They sell us (and our body shop customers) at cost+5% with delivery, so our voume is low. Even with a 2.5M inventory at the Chevy dealers, there's still a demand on us due to our specialization.

By the way, we are starting to get mailers from other GM dealers showing nameplate logos they are not franchised for. I thought we were not supposed to advertise that way. What do you all do??

scott, we average 22% or better. we are a medium sized chev-olds-cad dealer and like most we have big wholesaler in our area that goes after the body shops at cost + 15% or better. well we say let him have them, i make a much better profit selling wholesale on mechanical parts and using a proper matrix for them. sometimes somebody gripes about the price, but if we have it and we have today they buy it and go on.
as far as the logos, in the past we have used all the gm brands when advertising parts but not anymore. i haven't seen anything says not to.

Our wholesale gross runs at 22%, we let the guys that want the brain damage to sell at little to no profit and decided that this had to be profitable. It is amazing how many people want to sell a million a month even though they make 8-12% and have returns of 15-20%. The real question is what do you have to do to break even, and how much of a return does the dealer want on his investment?



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Mike

Last month(March) we did 21.1% on $325k, ytd is 22.4%. We are a medium sized Ford dealer selling about $550k per month on a $830k inventory. We use a gross profit structure that takes into account the differnce between suggested list and actual cost. Sale price is generated working from cost up controlling the margin.

Scott -
With close to 2,000 clients that report to us monthly, we have Benchmarks for every franchise, and they vary significantly, particularly for Hi-Volume Parts Wholesalers. If you are willing to identify your Franchise and Wholesale Sales $$$$ Level, I can give you a good idea of where you should be.
Garry House
NCM Consulting Division

[This message has been edited by Garry House (edited 04-26-99).]

Thank You Everybody !
Scott

we are a small dodge chrysler franchise in
california.
we average 22% on wholesale with gross sales
averaging about 25,000 a month in the wholesale market.
there are other much more competitive dealers in the area that capture most of the major accounts. i would love to see there gross profit percentages though.
if we can't make money at it we don't waste our time.


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dennis wood