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.