MATRIX AND INTERNAL

[bigmac]

How many of you use a matrix and how is it broken down? Also what do you charge internal?

[Denise Trimble]

Don't use matrix pricing, internal is cost + 25%

[MSInventory]

I use a "matrix" on parts costing up to $50.00. After that i follow List.
All internals are billed at List price.

[Fixed Ops Mgr]

I don't use a matrix at all. Customers are smart and all they have to do is google the part number on the internet and if they see
they paid more than retail, they perceive that you ripped them off and that word travels fast.

Internal vehicles all get charged out at retail price. Your sales department sells the vehicle off the cost that they have in it so
why give them a discount? You are only giving away profit from your parts department/fixed operations. If the sales manager
balks at paying retail for internal vehicles because his cost is to high that he won't be able to sell the car then he better have a long
talk with his sales team.

Keep in mind that the higher fixed coverage percentage that you can maintain means more profit on every car they
sell from the sales department.

[MSInventory]

Amen!