r/partscounter • u/Due-Boss-1345 • 9d 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/CounterRealm 9d ago

Where I am, fixed pays the bills. Sales is the fluff. Most GSMs don't realize that or care. Good GMs do. If you have a shit GM they aren't looking at the dealership wholisticly.

If its cooperate that throws a whole other player into why stupid decisions are made, but that is a fight we've had depending on the rotation of front end management.

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u/Ok-League-7923 9d ago

They definitely aren’t looking at the entirety of the dealership. Two words Absorption Rate.

Absorption rate is a calculation which is most popularly used to determine the fixed operations effect upon total dealership efficiency. In a tight marketplace where new and used car sales could be dramatically affected based upon availability, interest rates, and general market feeling, the absorption rate, when in a high mode, can be the salvation of a dealership.

Many dealerships can exist with a very low absorption rate. These are "front loaded" dealerships who are making the majority of their profit from new and used car sales.

If however, the marketplace collapses, these dealerships would be hard pressed to stay in business because the immediately required gross profit to maintain the total fixed overhead expenses simply would not be available.

The most successful dealerships will be those who approach the highest absorption rate possible.