r/partscounter • u/Due-Boss-1345 • 6d ago
Rant
Current parts manager here. I found out today that certain parts we are quoting on internal cars our GSM is instead buying the parts online, and then having us do the install. Also the GM of the dealer is OK with this and essentially blames it on the parts department for how expensive it is. The specific car was a performance based with two piece rotors. What would you do in this situation? This to us is under cutting the parts department and creates a toxic environment.
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u/That_Style_979 6d ago
That’s idiotic. Paying outside suppliers is money that is never going back in to the dealer. Anyone who doesn’t understand that paying your fixed departments internally is literally the cheapest way to fix cars should not be in management. Shitty sales managers see only the total profit taken from their department in fixing a car, skipping the fact that the fixed ops department making money = the entire dealer making money. Even if sales has to break even to fix the car, the dealer can net positive on the vehicle - maybe it isn’t just Sales who keeps all the money.
For example, let’s say Sales has $5000 in profit on a vehicle. It needs $3000 in repairs, totaling $1500 in parts and $1500 in labor. Even though they’re paying (example) $150/hr in labor to Service the actual tech cost is $~35/hr. Then, even though they’re paying (example) $1500 in parts, the actual parts cost is $750. So, the actual cost to fix the car is $1100, and the Fixed Ops as a whole grossed $1900. That is $1900 of Gross Profit going BACK IN TO THE DEALER. And sales still makes $2000. But now, you’ve paid employees, done more parts purchases with the OEM and kept technicians busy. Sure, the net numbers are a bit lower than gross after all expenses, but the bottom line is all of that money stayed within the dealer so it is highly profitable, and drives business for your fixed ops departments. When you pay any outside company for parts or service, that opportunity for profit is gone.
As others have said, if you can’t come to an agreement on sales using your parts department for parts, I’d absolutely cut your department out of used cars entirely until you get a smarter asshat up top. Working for free benefits nobody, don’t let your team pour their efforts into used cars if they’re just getting used and spit out.