Sell Parts, Keep America Safe

Fixed Ops Insight - July 19, 2012

Over the past 10 years, deal­ers have seen gross prof­it from parts sales shrink. Deal­ers have few whole­sale parts oppor­tu­ni­ties. NADA says the per­cent­age of old­er cars on the road is reduc­ing war­ran­ty repairs. And the addi­tion of “Quick Ser­vice” lanes is chang­ing the sales mix to low­er mar­gin parts. All of this is affect­ing the bot­tom line of the fixed oper­a­tions depart­ment.

There is lit­tle a deal­er can do to low­er the aver­age age of America’s auto fleet or to reverse the growth of inde­pen­dent repair shops. The trend of longer main­te­nance inter­vals also affect parts sales. Deal­ers do, how­ev­er, have the abil­i­ty to improve the gross prof­it gen­er­at­ed by their “Quick Ser­vice” lanes.

As cars age, the num­ber of main­te­nance-relat­ed acci­dents increas­es pro­por­tion­al­ly. These are acci­dents caused by worn brakes, among oth­er things. Deal­ers who do a prop­er safe­ty inspec­tion will increase parts sales and keep America’s roads safer.



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