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Parts $ vs Service $

Posted:
Fri Oct 31, 2014 10:27 pm
by Richard
It used to be that you were supposed to sell $1 of parts to every dollar of service. The last several years I've noticed it is changing - now it's like .60 parts versus $1 labor.
Anyone else having this issue/Mind sharing numbers?
Re: Parts $ vs Service $

Posted:
Sat Nov 01, 2014 1:23 am
by Zep33
exactly the same with us.
I think a lot of it, at least here, had to do with the push for hours per RO vs Total $ per RO. That's been changing here and the ratio is closing in again.
Re: Parts $ vs Service $

Posted:
Sat Nov 01, 2014 3:41 pm
by Mike Nicholes
Not surprising since two things have been happening: 1) the flagged labor rate has been climbing faster than profit on parts and 2) because of the trend in quality in the production of parts, the 'rate of use' and replacement is falling.
Re: Parts $ vs Service $

Posted:
Sat Nov 01, 2014 3:52 pm
by cville1987
Here it's about .55 per $1. Mind you though, door rate keeps going up and if you're a GM store, GM lowered MSRP significantly a few yesrs ago and while I use a matrix, the days of getting away with matrix are numbered due to the age of the internet. Also, menu pricing cutting into prices. So I'm not surprised at all.