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Tuscola, IL | Absolutely, Bryon. Thanks for the feedback.
I think it's been a long time coming, but with pennies being pinched all around, I think dealers really need to start putting pencil to paper and seeing what the labor rate actually covers. Same for parts markup. Are we charging enough on labor to cover shop supplies? Or are we barely covering salaries? I think it started out being an actual number that had some relevance, like you show with the 1/3,1/3,1/3. But, I think anymore it's just an arbitrary number that reflects the competition in the area.
If we could justify lowering our labor rate because we have the shop supply charge, or justify raising labor rate and not having a shop supply charge, I think we could show the customer exactly what he's getting. I think this is going to be more of an important issue over the next several months as dealers look to the parts and service departments to keep the doors open while sales lag behind. | |
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Billing Issue - Shop Supplies
