Even though unit sales of new ATVs dropped by more than 10% in October, profit per unit remained strong at Top Gun dealers across the country. Profit per new ATV in October was $880, up from $873 in October 2001. It was also an increase over the $760 per unit posted in September.
Profit per new motorcycle was $1,026, up from $961 last October. In September, profit per new motorcycle was $1,099, up from $923 recorded in September 2001.
Gross Profit Per Hour
To calculate Gross Profit per effort hour, take the total gross profit generated by your P&A department for a given month or pay period. Divide that number by the total number of hours worked (clock hours) for all members of the P&A team, regardless of title, for the same period. If someone works in P&A as well as another department, estimate the number of hours they worked in Parts.
Average Invoice To Walk-in P&A customers
To see how you compare, determine your total gross sales to walk-in customers. Be sure to exclude all wholesale, mail-order, service through repair orders, and P&A sold with major unit sales. Then divide your gross sales by the number of transactions to those walk-in customers.
OEM Parts Sales Compared To Accessory Sales.
If your accessory sales dollars do not equal your total OEM parts business, your customers are buying from sources other than you.
Service Effective Labor Rate
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To determine your effective labor rate, take the total Service team effort hours (techs and all support personnel, including porters) and divide that amount into your gross labor sales for the same period.
Copyright 2003 Powersports Business