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amount of people they employ.
6. WASTED SPACE
Daily parts orders and factory stocking guides have reduced the average parts inventory. With that in mind, do you
really need all the room you
used to need back there? Can
it be put to better use? Could it
become a special tool room or
a work area for the technicians
that would free up a bay in your
service department? Could you
use the room to expand your
customer waiting area or service write-up area?
You also should run your
parts management report on a
regular basis. T is report will
show you how your parts inventory is aging, how many
dollars of adjustments have
been made to the inventory
value, how much you have on
your parts pad vs. your general ledger, what your projected
obsolescence is, negative parts
and dollars on hand, your parts
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turn and how many dollars
are more than 12 months old.
Map the information out on a
month-by-month basis to f nd
out if you are going in the right
direction.
Lastly, check your parts
grosses on your f nancial
statements. Are your internal
parts grossing at least what
your customer-pay parts sales
are grossing? If not, why not?
You are giving up gross proft
which can help increase your
parts and service absorption of
f xed expenses. Have your parts
manager increase the parts matrix to a higher markup until
you achieve at least the customer-pay gross proft percentage.
T is should not negatively affect your average used-vehicle
gross proft. If anything, it
should do the opposite.
Take a chance and spend
some time with your parts department. Maybe you will fnd
out why they never seem to have
the right parts in stock.
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APRIL 2013 ��� AUTODE ALE R MONTHLY.COM
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