Parts Matrix help

[IntegrityJack]

Hey guys! I am a brand new shop and this is my first business. I am starting it from the ground up. Can anyone please tell me how they have their parts matrix set up? Exact info would be helpful. I have done something horribly wrong with the way I have it because most everything seems to be marked up way above list price. ((a screen shot of your set up would be the bee's knee's)) Thank you in advance!

[steven kiser]

To begin with list price is basically a fictional number from all parts stores. Dealers are different. I add 15% over list from the dealer. When a part is sold to a shop from a dealer and list is say 65.00 the same part is sold in a dealer job to the customer for 76.00. Any large ticket item such as an engine will not fit into any of my matrixes and I need to make up as much as I can in up sells or if I purchase an install kit (Jasper) it costs say 300 dollars I line item the parts through my cost from my parts store and it increases the list profit by 200%. I also increase the labor to cover more loss on my matrix. As a rule tires, engines, transmissions, batteries, and a few other items will not fit into the matrix pricing. I try to charge a bit more in labor to try to cover it. My carry over matrix list from my wholesalers is running around 125%. Now where you need to be careful is (my experience) is if I can purchase a new axle from World Pac for 99.00 and the list (I'll use BMW) for example is 864.00 while a local part store sell a new axle and the list is 365.00 my cost may be 210.00 I'll purchase it from World Pac and list it for 365.00 or if there aren't any other new axles available from any other part stores I'll go the whole 864.00.

Where it gets complicated is sometimes the list of a part is more than your matrix figure is it needs to be overridden. It's not an easy program and go. Each invoice needs to be looked at and from time to time adjusted. I compete with no one and depending on my profit and loss figures I move my %. I know if I have two transmissions, an engine, 40 tires, 10 batteries in a week no matter what else we do I'll show a loss for that week and maybe the month so I need to move the numbers. I added up all my costs based on last years figures added 15% (low number) for increases and figured out what I need to make per day to brake even. Being a new shop you have to basically put a bit more work into it. I include stationary, fuel to get back and forth, first aid supplies for an example. Don't forget all insurances. Complicated isn't it. When I install new tires normal steel rim weights are included but if I need to use any stick on or other style wheel weight (alloy wheel) I charge for them and always install and charge for new valve stems. If the wheel needs to be cleaned at the bead seat, 80% do, I get 12 bucks to wire wheel it clean and if it's an alloy that needs to be sealed because of corrosion I add another 10 bucks. Watch the pennies and the dollars will take care of themselves. I can go on and on and on about pricing and if you want to chat let me know.

[Jeff @ Able Auto]

I use a parts matrix I found in an article in Motor Age mag. Try this link.http://www.searchautoparts.com/motorage/profit-matters And along with Steves post, dont be afraid to charge for all the little things. May not seem like much but it adds up.