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How to Manage the 8 Controllables of Dealership ... - DealersEdge

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Essential #7<br />

Gross Pr<strong>of</strong>it Margins = 75% & 40%<br />

Gross Pr<strong>of</strong>it = The Sale Amount <strong>of</strong> a<br />

Product or Service Minus <strong>the</strong> Cost <strong>of</strong> Sale<br />

Gross Pr<strong>of</strong>it Margin = The Gross Pr<strong>of</strong>it<br />

divided by <strong>the</strong> Sale Amount<br />

Sale Amount Cost <strong>of</strong> Sale Gross Pr<strong>of</strong>it Margin<br />

$112-Labor $28-Tech $84 75%<br />

$90-Parts $54-Supplier $36 40%<br />

Essential #8<br />

Control Expenses<br />

Shop Policy Adjustment – (2% <strong>of</strong> Labor Gross)<br />

Lot Damage<br />

Comebacks<br />

Tools & Shop Supplies<br />

Charge Out Supplies @ 7% <strong>of</strong> Labor (State<br />

Laws?)<br />

S<strong>to</strong>re & Dispense Supplies in <strong>the</strong> Parts<br />

Department (Log)<br />

Personnel (1 Support Person for every 2 Productive)

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