See if you’re using this popular profit-increasing technique.
Article Highlights:
- What could a 58 cent increase in profit per part mean for your store?
- Don’t Forget Your Parts Pocket Change
58 cents. Most people would not pay much attention to 58 cents if they saw it laying around. It would be considered pocket change or a quick vending machine snack. However, parts managers should see that spare change a little differently. To you, it’s a goldmine waiting to be gathered.
Every day, thousands of dealerships are letting bottom line profits pass right through their dealership uncaptured because they ignore the change. Consumers have been conditioned to see prices with high cent endings as normal. Large department stores will routinely mark up products to $X.99, or something close to it. It’s no coincidence that most products end between $.50-$.99 cents – just take a look at your next grocery store receipt! This has become such a broadly accepted practice in the retail sales world that it’s rarely questioned.
Are you following the lead of your local grocery store and marking up your parts prices? The average Reynolds and Reynolds dealership is generating $1,569 per month from picking up their parts pocket change.
Dealerships of all sizes are using this common marketplace pricing tactic to boost profits every month. The Reynolds system has the capability to add a few cents onto your parts and capture that unnoticed extra profit. Working with the existing pricing matrices and price levels, Retail Markup Option is a no-hassle, automated system that marks up the final sale price by a specified amount. Easy setups ensure the parts manager has ultimate control over the implementation of this solution.
Regardless of your retail parts volume, introducing markups on every sale will add to your bottom line. In fact, the Parts Retail Markup Option is generating $25 million annually across Reynolds dealerships by adding an average of $0.58 to parts sold.
How much profit are you missing out on from ignoring your pocket change? Find out using our interactive calculator!
Check out our website for other ways Reynolds can help your parts department.
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Product Planning, Reynolds and Reynolds
Adam Kirdzik is a Product Planning manager for Parts and Service applications at Reynolds and Reynolds.
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