Motorcycle margins increase
Gross profit on each new motorcycle sold increased in January to $1,007 from $729 in December, but it was down slightly from the $1,081 and $1,035 recorded in January of 2002 and 2001, respectively.
Gross profit on used bikes slipped even more, dipping to $716, down from the $861 and $1,015 in January 2002 and January 2001, respectively.
Profits on new ATVs also softened in January compared to the same month in 2001 and 2002. This year it was $805, compared to $938 last year and $809 in 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
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.