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 43http://asidoors.com/FO1120