The Parts Department is one of the most profitable departments for a dealership. Depending on the product mix the dealership sells, most parts departments that we work with make a 35% – 52% margin on their parts. The other reason that parts remains profitable and easily scalable is the fact that just one parts person can handle anywhere between $350,000 – $600,000 of [...]
For many of you, the season has slowed down and you are getting a chance to catch your breath for the first time. While it is important to grab some much-needed rest as you end your 2019 seasonal journey, it’s also the perfect time to reflect on the season while it is still fresh in your mind. This is the time that we [...]
It’s probably no surprise to most owners and managers, but typically, the biggest expense in a dealership are the people you employ. In the heat of the battle, when you feel the pain of needing another set of hands, it can be easy to justify adding another body to the dealership and another person to payroll. However, as you approach slow season, you [...]
Have you ever had a terrible manager? I have, and my guess is you have too. Whenever the topic of management comes up, I can’t help but mentally go to all of the bad managers I have had. When I think about a terrible manager, I think of someone who micro-manages, lacks communication skills and motivates with fear. The first manager I had, [...]
One of the most important jobs of a department manager is working to keep their team motivated. In the parts department it is even more important than in service and sales because of the amount of customer contact that happens daily. One unmotivated parts person can impact both your parts sales and your customers’ experience with your dealership. One of the simplest and [...]
As customers’ attitudes continue to change about their need to interact with a person rather than a machine, we’re faced with great opportunities to make some innovations to the parts departments in dealerships. I am guessing that most of you have looked up and ordered an item online or perhaps have gone through a self-checkout line in a store. Where several years ago, [...]
The parts department is one of the most complex parts of any dealership. It serves as the first impression for many customers and has challenges that no other department will face. At times, it may even seem like an impossible task to make everyone happy. Keeping your parts department running smoothly boils down to three key processes. The Process of Having the Right [...]
When it comes to parts, most people don’t think about them until they need them. Therefore it is critical to be at the front of your customers' minds when that need arises. One of the easiest ways to do that is to set up parts displays in your showroom near your equipment displays. While the customer is looking at new equipment, they are [...]
Not just anyone can be picked off up the street and be placed at the parts counter. There is a mix of customer service, technical knowledge, sales ability, and attention to detail required to be an excellent parts person. So, when you are in need of the mystical parts person, how and where do you find them? With season upon us, there never [...]
Today, it makes no sense for a dealership to maintain a large parts inventory, or stock ten of the same item, because manufacturers have greatly improved their ability to get you the parts you need when you need them. Twenty years ago, it took almost 30 days to get a part, and now you can get a part delivered to you in one [...]