Are these $1.00 Service Parts Costing You $1000’s?

By Greg Iorfida

 As the saying goes “little things can add up”.  And unless you’re paying close attention the little things, like inexpensive service parts, can add up to $1,000’s in lost profits for an auto repair shop. The general service parts we’re talking about are the ones used every day when servicing vehicles – lug nuts, oil drain plugs, fuses, nuts and bolts and more.  So, how can these low cost service parts cost you $1,000’s?

Profit and productivity take a hit when these inexpensive service parts are not readily available. Trying to locate, source or wait for delivery for these items results in three big problems: wasted technician time, idle service bays and lost profit.  How much lost profit? Consider this example:

Average service sales per bay, per hour……………………………… $150.00

Hours per week bay is idle waiting for parts……………………………… 2 hrs.

Lost service bay revenue per week……………………………………. $300.00

Lost service bay revenue per year (x 52 weeks)………………… $15,600.00

Average net profit……………………………………………………………… 33%

Lost profit per year……………………………………………………… $5,148.00

Number of service bays……………………………………………………….. 3

Total lost profit – all bays per year……………………………… $15,444.00

For a very modest cost a service shop can have these parts on hand and ready to use.  Most of these general service parts are available in organized and inexpensive kits and assortments. Take a look at your operation, see what you need, make the investment, and increase your profit.

Minimum service bay downtime results in maximum productivity and profits.