Warranty Parts Profit % Question...

Warranty Parts Profit % Question...

Postby partsman103 » Thu Apr 07, 2016 5:31 pm

First of all, my brain is fried :shock: so pardon my ignorance,,, but right now i'm having a rough go of it trying to think clearly. My "Warranty Sales to Gross" ratio usually averages 29%. For some odd reason, after reviewing the daily report I noticed that my percentage dropped to 24%.

What steps can I take to find out "why" or "how" did my % decrease by 5%. Again, my brain is fried from the other things I'm trying to figure out (V/C recall part Back Orders et al.) so any and all steps, suggestions to finding out the "why/how" are greatly appreciated.
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Re: Warranty Parts Profit % Question...

Postby PartsPlant81 » Thu Apr 07, 2016 7:22 pm

If your gross was 29% that means your warranty markup is only 40% which is the standard but could be much higher just an fyi.
Now it went down to 24% which means you are only billing your parts out at about a 32% markup.
Did a price level or sale type gets modified in your DMS on accident?
Other than your counter people manually changing every part that they charge out the only way I can think of is the sale type or price level was changed in your DMS for warranty parts.
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