Parts Gross Profit Standards

[imacdude]

I have read the previous posts regarding what different Parts managers expect for Gross Profit Percentages for RO Cust, RO Warranty, RO Internal, Counter, etc. but is there a true NADA standard or benchmark for these categories. I have looked all over for the numbers. I can go back and pull trends etc. But I am trying to put some things on paper regarding the Industry and its standard/benchmark/average. Can anybody help?

Thanks
John Belen

[ronc925]

I looked through my NADA and manufacturer's materials and I can't find any standards for gross profit on parts.

Maybe this is because each market is so different with the economies, dealer and aftermarket competition?

For example when I worked with dealers in the Denver, CO market, those dealers averaged 46-48% GP on Customer Pay parts on RO's, 20-22% on wholesale parts. In the Portland, OR market, these dealers are averaging something like 38-40% CP and 14-16% on wholesale.

Warranty Gross Profit on parts should be relatively the same since manufacturers reimburse at the same rate nationwide.

It's not like GP% on labor, where your labor costs would change by market conditions and economy. As you know, everyone in the country pays nearly the same for a part from the same manufacturers.

Your manufacturer's reps should be able to tell you if you are in the ball park for your area. Although they can't or shouldn't be disclosing exact numbers, they should be able to give you a good indication by each category and look at the profitability side of the department as well.

[SantoC]

You can call NADA and request an NADA 20 Group Profiles Book, which will provide you with guides on the info you are requesting specifically geared toward your franchise(s). See there website for contact info. Good luck.
www.nada.org