Fixed Ops Magazine - 2021 Vol18 01 - 43

Here are the factors you will want to consider for building an internal parts operation that gets noticed for
its creativity, intelligence, flexibility - and measurable
contribution to the bottom line:

PRICING

COST
How much are you willing to pay for a cheaper part?
That sounds like a silly question, but it is not. The
pre-owned market is hyper-focused on what they are
paying for parts and labor. As such, those tasked with
getting acquired and trade-in cars reconditioned and

Before you start thinking I am going to tell you that

front-line ready fast often lose sight of what it costs

your Parts Department is charging your Sales Depart-

them to keep that vehicle in stock every day. 

ment too much, think again. I believe that Parts should
charge the Used Car Department retail and use the

The cheapest part is not necessarily the least expen-

same price matrix for retail customers. Many dealers

sive alternative. Also, consider the cost of the factory

are migrating to the matrix pricing model. As a result,

part on the shelf compared to:

the Pre-Owned Department is asking for Parts-counter team members to seek cheaper aftermarket or used
parts alternatives. 

* A lower-priced part available online
* The cost and time to ship that part that is not currently on the shelf
* Holding cost

JANUARY FEBRUARY 2021 || FIXED OPS MAGAZINE

43


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Fixed Ops Magazine - 2021 Vol18 01

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2021 Vol18 01

Fixed Ops Magazine - 2021 Vol18 01 - 1
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Fixed Ops Magazine - 2021 Vol18 01 - 67
Fixed Ops Magazine - 2021 Vol18 01 - 68
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