Pub. 57 2016-2017 Issue 2

22 Texas Dealer Academy Maximizing Profit in the Parts Department TDA Trustee, Tim Crenwelge, provided Texas young dealers an in-depth analysis of their parts business in the most recent meeting of the Texas Dealer Academy with presentations by two of the leading experts on dealership parts operations. Chuck Hartle, President of PartsEdge, along with company Vice President Cliff Cope, came from San Diego, California to conduct a hands-on look at each member dealer’s parts department. The content of the day-long session included the following agenda: Your Parts Inventory, Treasure or Trash Is there a simplified way to really measure the performance of your inventory? By turns, by age, by movement? All of these have some significance, but what do these reports really tell you? Are Manufacturer Stocking Programs, such as General Motors’ RIM (Retail Inven- tory Management) or Chrysler’s ARO (Auto- matic Replenishment Ordering) better than traditional methods of Dealerships making their own settings and stocking criteria? This presentation will go through this and more. Break Workshop Break into groups andwewill present a scenario on inventory value and have the groups work solutions to handle the problem. Workshop Review and Questions Lunch Matrix or NoMatrix? Maximizing Parts Profits This presentation will cover current pricing strategies in today’s Parts Dealerships. Chuck will dive into the traditional methods of both retail and wholesale pricing schemes used and where the potential flaws are in pricing that “drag” down the gross profit numbers. This presentation is a great “follow up” to the “Treasure or Trash” presentation with regards to how inventory control and pricing have a strong relationship to each other. Break Matrix Escalator Table Review We will go through your own store’s escala- tor strategy and have you compare it to your own store’s profit margins. Chuck will give you the equation for determining your gross profit “yield.” Break Questions and Wrap Up (Prior to class, send PartsEdge your parts inventory file for evaluation. Dealers can call PartsEdge to get the correct data file and fields to pull and send to PartsEdge for evaluation. This information in part num- bers only, no customer information at all. Bring your current “Escalator or Matrix” set- tings report to the meeting with you. You can call PartsEdge if you are not sure how to have someone pull this report for you.)