Fixed Ops Magazine 2025 Vol 22-1 - 53

Many manufacturers offer programs that return 1-2%
of the money spent on parts if the inventory is managed
properly. This is often called a " return reserve, "
and it's a way for dealerships to earn back cash, especially
at the end of the year, if they keep their inventory
clean and organized. " Think of inventory as piles
of money. The faster you move it, the more money
you make. Clean, quick-moving inventory is the key to
success, " said Scott.
In addition to the return reserve, manufacturers may
offer bonuses for meeting benchmarks, such as hitting
certain sales targets or increasing order volume.
These benchmarks can unlock marketing money,
usually around 3%, that can be used to promote the
dealership. In some cases, dealerships have earned
as much as $70,000 a month from these kickbacks,
which adds up fast when the parts department is
bringing in higher sales volumes.
Parts managers can sell parts to a global audience,
competing with aftermarket retailers that operate
around the clock. As Scott Lindwall, Fixed Operations
Director for Bommarito Group, explained, " Our competition
isn't just the dealership down the street anymore.
It's the aftermarket businesses that are working
24/7. We have the tools to do the same-and do it
even better. "
To succeed with selling parts online, parts managers
need to think of their department like a small business.
That means making smart investments in inventory,
marketing, and selling tools like an online store.
Sure, this means forsaking the old ways and trying
something new. But in Scott's words, " Taking risks is
part of being great. "
UNLOCKING NEW REVENUE STREAMS
THROUGH KICKBACKS
Manufacturer kickbacks reward dealerships for hitting
parts volume goals. When managed well, these kickbacks
can bring in a lot of extra money that helps the
parts department's profitability and the dealership's
overall goals.
JANUARY FEBRUARY 2025 || FIXED OPS MAGAZINE
By adding a few hundred thousand dollars in extra
parts sales, the dealership earns more reserves and
benefits from extra cash flow. This money can then
support other areas of the business, such as improving
tools, hiring staff, or boosting marketing efforts.
Manufacturer kickbacks are more than just a bonus-
they're a way for parts departments to lead the way in
driving revenue and supporting the entire dealership.
INVESTING IN PARTS PEOPLE AND TOOLS
A great parts department starts with a great team, but
many dealerships don't give employees the support they
need. Most new staff members only get a brief introduction
to their job and are left to learn on their own, which
doesn't set them up to succeed. Scott believes managers
should focus on building strong teams. " Set them up
to be on a winning team, " Scott said.
Employees need to feel valued and know how their work
fits into the bigger picture. Managers can help by providing
training, sharing clear goals, and giving workers
the tools they need to excel. Offering bonuses for good
work and teaching employees about other departments
through cross-training can also help teams grow stronger.
Scott explained, " your bottom line is your front line,
and your people are your front line. "
53

Fixed Ops Magazine 2025 Vol 22-1

Table of Contents for the Digital Edition of Fixed Ops Magazine 2025 Vol 22-1

Fixed Ops Magazine 2025 Vol 22-1 - 1
Fixed Ops Magazine 2025 Vol 22-1 - 2
Fixed Ops Magazine 2025 Vol 22-1 - 3
Fixed Ops Magazine 2025 Vol 22-1 - 4
Fixed Ops Magazine 2025 Vol 22-1 - 5
Fixed Ops Magazine 2025 Vol 22-1 - 6
Fixed Ops Magazine 2025 Vol 22-1 - 7
Fixed Ops Magazine 2025 Vol 22-1 - 8
Fixed Ops Magazine 2025 Vol 22-1 - 9
Fixed Ops Magazine 2025 Vol 22-1 - 10
Fixed Ops Magazine 2025 Vol 22-1 - 11
Fixed Ops Magazine 2025 Vol 22-1 - 12
Fixed Ops Magazine 2025 Vol 22-1 - 13
Fixed Ops Magazine 2025 Vol 22-1 - 14
Fixed Ops Magazine 2025 Vol 22-1 - 15
Fixed Ops Magazine 2025 Vol 22-1 - 16
Fixed Ops Magazine 2025 Vol 22-1 - 17
Fixed Ops Magazine 2025 Vol 22-1 - 18
Fixed Ops Magazine 2025 Vol 22-1 - 19
Fixed Ops Magazine 2025 Vol 22-1 - 20
Fixed Ops Magazine 2025 Vol 22-1 - 21
Fixed Ops Magazine 2025 Vol 22-1 - 22
Fixed Ops Magazine 2025 Vol 22-1 - 23
Fixed Ops Magazine 2025 Vol 22-1 - 24
Fixed Ops Magazine 2025 Vol 22-1 - 25
Fixed Ops Magazine 2025 Vol 22-1 - 26
Fixed Ops Magazine 2025 Vol 22-1 - 27
Fixed Ops Magazine 2025 Vol 22-1 - 28
Fixed Ops Magazine 2025 Vol 22-1 - 29
Fixed Ops Magazine 2025 Vol 22-1 - 30
Fixed Ops Magazine 2025 Vol 22-1 - 31
Fixed Ops Magazine 2025 Vol 22-1 - 32
Fixed Ops Magazine 2025 Vol 22-1 - 33
Fixed Ops Magazine 2025 Vol 22-1 - 34
Fixed Ops Magazine 2025 Vol 22-1 - 35
Fixed Ops Magazine 2025 Vol 22-1 - 36
Fixed Ops Magazine 2025 Vol 22-1 - 37
Fixed Ops Magazine 2025 Vol 22-1 - 38
Fixed Ops Magazine 2025 Vol 22-1 - 39
Fixed Ops Magazine 2025 Vol 22-1 - 40
Fixed Ops Magazine 2025 Vol 22-1 - 41
Fixed Ops Magazine 2025 Vol 22-1 - 42
Fixed Ops Magazine 2025 Vol 22-1 - 43
Fixed Ops Magazine 2025 Vol 22-1 - 44
Fixed Ops Magazine 2025 Vol 22-1 - 45
Fixed Ops Magazine 2025 Vol 22-1 - 46
Fixed Ops Magazine 2025 Vol 22-1 - 47
Fixed Ops Magazine 2025 Vol 22-1 - 48
Fixed Ops Magazine 2025 Vol 22-1 - 49
Fixed Ops Magazine 2025 Vol 22-1 - 50
Fixed Ops Magazine 2025 Vol 22-1 - 51
Fixed Ops Magazine 2025 Vol 22-1 - 52
Fixed Ops Magazine 2025 Vol 22-1 - 53
Fixed Ops Magazine 2025 Vol 22-1 - 54
Fixed Ops Magazine 2025 Vol 22-1 - 55
Fixed Ops Magazine 2025 Vol 22-1 - 56
Fixed Ops Magazine 2025 Vol 22-1 - 57
Fixed Ops Magazine 2025 Vol 22-1 - 58
Fixed Ops Magazine 2025 Vol 22-1 - 59
Fixed Ops Magazine 2025 Vol 22-1 - 60
Fixed Ops Magazine 2025 Vol 22-1 - 61
Fixed Ops Magazine 2025 Vol 22-1 - 62
Fixed Ops Magazine 2025 Vol 22-1 - 63
Fixed Ops Magazine 2025 Vol 22-1 - 64
Fixed Ops Magazine 2025 Vol 22-1 - 65
Fixed Ops Magazine 2025 Vol 22-1 - 66
Fixed Ops Magazine 2025 Vol 22-1 - 67
Fixed Ops Magazine 2025 Vol 22-1 - 68
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