5 WAYS TO FIND HIDDEN CASH IN PARTS

You’re not stocking parts to fill empty shelves. Make sure your parts are turning and making you money. Here are 5 ideas how:

1. Don’t just price to MSRP. Price to Value. Use your experience and test different prices. Dealers have increased their margins ten times over by increasing prices on the little stuff.

2. Stop the monster from Growing. Identify obsolete, slow moving or overstock parts and stop ordering them. Just because you ordered them before doesn’t mean they’re still in demand.

3. Preach Up Selling. Make sure similar and reference parts are marked in your Dealer Management System. One quarter line per invoice increase in your average ticket adds $60,000 to your bottom line.

4. Rounding is your friend. Rounding your average prices up can add $8,000 per year to your bottom line.

5. Writing down obsolete inventory. The average dealer has about $200,000 sitting on their shelves. Writing it off could save you up to $70,000 in taxes. Talk to your accountant to see if this is an opportunity at your dealership.

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