Auto Dealer Monthly

APR 2013

Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.

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AC C OUNTING ��ISTOCKPHOTO.COM/SCHLOL return allowance very quickly, which could spell problems for those parts that are becoming obsolete. Special parts should be stocked separately so they can easily be tracked. Doing this also helps you quickly calculate the total dollars you have sitting on the shelves. You should also try to obtain prepayment on special-order parts as ofen as possible to try to minimize the parts return allowance they use up. 4. USED PARTS Where are all those used parts your techs have removed over the years? Did you personally keep track of the $2,000 worth of tires and wheels you took of that three-quarter-ton pickup? I don���t know many dealers who can tell me the value of their used-parts inventory. In fact, most dealers don���t know whether a removed part is still in stock, has been installed on another used vehicle or was sold to a customer. Used parts also should be tracked on the parts counter pad and have a price attached to them. You should be able to run a report of these parts to physically check if they are still in stock. Failure to track these parts means they can easily disappear out the back door and no one will ever know. 5. IDLE HANDS How busy are your parts counter employees? You don���t have to walk through the department to f nd out. Just look at your f nancial statement, take your total parts sales and divide that by the number of employees you have in the department. I have seen average sales of $30,000 to $75,000 per employee, which is quite a range. Some stores f nd themselves in the predicament where sales aren���t enough to add another person, but they���re too much for the ��ISTOCKPHOTO.COM/DIFYDAVE 14 AUTO DE ALE R MONTHLY ��� APRIL 2013

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