Shop Supplies

[westover6]

We have a shop supply account(uniforms, nuts, bolts, wheel weights, etc.) and a supply recovery account. How many of you recover more than you spend? and those that recover more do you get paid on it? I figure that I lost $2k in compensation because it doesn't go back to gross.

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[texaslp]

On the GM statement(new last year I think), shop supplies is treated as a sale/cost of sale rather than an expense/expense recovery, so it's part of service gross profit/loss. We're at a 20% profit YTD.

Your DP may consider any additional expense "recovery" as a reduction of other shop costs, ie tools, uniforms, etc.

[agamemnon]

We charge nuts, bolts, wheel weights to the repair order through parts at a highly aggressive mark up. ( much higher than 20%)

[topshop]

If it has a part number (fasteners for example), we treat it just like any other part in almost every case....it is a line on the RO.

Most of the remaining items are contained in "service kits" which are also separate lines on the RO (these kits briefly describe the misc. items needed for that job).

We do not have a generic shop supply charge...customers HATE that (same with environmental fees).

Uniforms are an employee benefit and have nothing to do with shop supplies at our shop.

Profit margins are similar to parts margins in general.


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Tom Ham
AutomotiveManagementNetwork.com

[fburrows]

I agree with Tom. Most DMS systems allow you to charge out a part automatically with a dealer defined labor operation. If it is possible to get the computer to do it, it will happen every time. It is easy to explain why the customer is paying for wheel weights when they have their tires balanced, brake cleaner with a brake inspection or repair. Shop supply explanations get the deer in the headlights look from the customer and they will pay the bill but look for another shop the next time.

Remember it is not important that you win a battle. The important thing is that you win the war by keeping the customer. Nothing else really matters.


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Frank Burrows
fburrows@absdata.com

[Vince Lyons]

Drop ligts and air hoses are shop supplies...

Also it's not legal in every state to bill a % of RO to recover from the customer.

Nuts, bolts, washers, tiewraps etc...

They're not supplies, they are parts and they need to be controlled and billed by the Parts Dept as such.

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When in doubt, charge it out !
I'll be right back with it = Bill it to the Shop Ticket
(Enter any name) will bring you the RO = Charge it to my Personal AR

[nineball]

Frank

Does ADP do this ? (charge out part w/dealer defined labor op)

[OLDPARTSGUY]

"Nuts, bolts, washers, tiewraps etc...

They're not supplies, they are parts and they need to be controlled and billed by the Parts Dept as such."

Why would you do an interal money shuffle on something that you should charge the customer for. A practice like that leaves an incredible amount of money on the table over the course of a year.
Charge it out!!!

[randys2121]

Oldpartsguy, you've got it right.

Not only is an incredible amount of money left on the table, but it will dramatically reduce your shop expenses.

[This message has been edited by randys2121 (edited 01-11-2008).]

[lostgopher]

I don't disagree with nuts and bolts being parts. The question is "where is the bolt bin?". If it is in the shop or an area where techs can come a take whatever they need, I think that is a shop supply, because parts has a hard time monitoring it. The same with the keg of freon/R134. I had to start keeping track of how much got billed out per keg, and if it came up short, the difference was billed to service. After they got a few $600-700 bills, the ac equipment got repaired for leaks, and the valves were shut off better.