In a parts department, we often focus on the “big wins” defined by moving parts and high-ticket accessories. But are you overlooking the “pennies to dollars” optimization?
Rounding your retail price endings from .95 to .99 might seem like a minor tweak, but the math tells a different story for a medium-sized dealership:
- The Delta: A $0.04 increase per part sold.
- The Volume: For an average shop selling 3,500 parts per month, that’s an extra $140/month.
- The Annual Impact: $1,680+ in pure, 100% gross profit.
Why it works:
- Zero Resistance: Customers rarely price-shop at the cent level for filters, gaskets, or spark plugs.
- Service RO Efficiency: A major engine rebuild with 50+ line items nets an extra $2 in profit instantly.
- Set & Forget: Lightspeed DMS automatically updates your pricing allowing you to focus on the customer experience.
In an industry where margins are constantly squeezed, capturing “found money” through smart pricing logic is a no-brainer.
Have you audited your parts price escalators lately?
Ready to stop leaving money on the table? Join “The Three Amigos:” Mark Sheffield, Brian Lucas, and me, Wednesday, May 20 (12 PM CT). We’re breaking down everything you need to know about pricing matrices, escalators, and more.
As always, no cost and no pressure. If you’d like to register for these monthly meetings, here’s the link. https://lnkd.in/eR5H9vkF
Lightspeed
Lightspeed is a leading provider of cloud-based software for dealerships and Original Equipment Manufacturers (“OEMs”), serving the Powersport, Marine, RV, Trailer, Outdoor Power Equipment, and Golf Car industries. Lightspeed’s Dealer Management Solution (DMS) enables dealerships to optimize their end-to-end business operations, including sales, parts, service, rental, accounting, and CRM. When implemented into their daily operations, Lightspeed helps dealers increase their profitability by selling more units, service, and parts, all while creating a more streamlined experience for customers. For more than 40 years, Lightspeed has been empowering 4,500+ dealers across North America with the tools and technology they need to manage their dealerships. For more information, visit www.lightspeeddms.com.
