parts/service split

[harleygrl]

So, question to all of you really seasoned Fixed Op's people. If I have a goal of 100k gross (fixed) what is realisitic and fair as far as the parts and service split? For example, should the goal be 40k parts gross and 60k service gross? 30/70? 45/55?
Let me know your thoughts.....thanks!

[TheOne]

If all of the retention percentages are held in line, 66% service 33% parts. This also assumes no body shop.

[RPMGeorge]

How do you maintain a 66/33 average?

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George

[KLINK]

Including parts wholesale, now 50/50 one year ago service 65/parts 35 and thats with service beating last years Oct. gp by 32%

[Tyler Robbins]

There isnt a standardized split - It is dependant upon your total available hours, gross profit on labor and parts to labor ratio and gross profit on parts.

Work the math backwards from your 100K and you will have your answer.

[harleygrl]

Tyler,
Can you give me the math equations to work?
Thanks!

p.s. I have taken your Mazda classes before. Is that math figure in the service profit and performance workshop manual?

[gmcgrew]

The amount of gross made by each department really depends on what kind of business parts is doing. If they take care of the occasional retail/wholesale customer and focus on service than it should be somewhere around 2 to 1 in favor of service.

With a target of 100K I would assume that you have a small store with out a lot of wholesale. Build the service business and parts will follow. If you have good parts people you can bring in some more business wholesale but the service business will make a lot more for the store in less time. The store makes about 60-70% for each hour of labor sold and about 30-40% is kept for each dollar of part sold. If the ratio is about 1-1 for all of the parts sold in service than a 2-1 ratio makes lots of sense.

[Tyler Robbins]

harleygrl,

contact me directly and I'll walk you through it...

Some of the equations are in that workbook - yes.