Service Department Parts Multipliers

You must use the correct parts multipliers to ensure that you are grossing 65% on parts sales.

Below is a company that I worked with a few years ago. They had very low multipliers and we changed them. As you can see, it made a tremendous difference!

Using the old multiplier, they were selling $410 parts cost for $795. That is 48% gross. Using the new multiplier, they are selling the $410 parts for $1,225 or 65% gross. That is a 54% increase in parts income!

Now see what a difference it made in their service department's operating statement.

If you want to increase your sales and profit, go up on your prices!

If you have any questions, please do not hesitate to call me.

Thanks for all you do and as always “Expect More From Us”!

Thanks,

Bruce Martin

Dealer Business Consultant

Value Added Distributors

(757) 469-1205