Chuck Hartle is the Founder and President of Parts Edge, a company helping to increase DMS utilization, improves efficiency, accuracy, and profitability with solid and consistent plans for eliminating all types of idle inventory in Parts Operations.
Introduction to Strategic Parts Pricing
In today’s fast-paced auto industry, mastering the art of strategic auto parts pricing is crucial for dealerships striving to maximize their profits. Kaylee Felio, the host of the Parts Girl Podcast, dives into this topic in an engaging episode featuring Chuck Hartle, the Founder of PartsEdge. Together, they explore effective strategies to optimize pricing through in-depth customer pay analysis and strategic matrix utilization.
Unraveling the Complexities of the Pricing Matrix
Many dealers instinctively raise their pricing matrix to increase gross profits, but Chuck Hartle offers a different perspective. He highlights the untapped potential in reevaluating the pricing of maintenance parts, which often remain constant despite escalating costs. He encourages dealers to conduct comprehensive customer pay analyses, excluding internal sales, to truly understand their matrix usage. Surprisingly, these analyses reveal that on average, only 15% of parts actively participate in matrix pricing.
Elevating Inventory Management with Precision
Chuck Hartle also underscores the importance of breaking down inventory into finer categories and assigning accurate codes for enhanced flexibility. This approach opens up various pricing options and matrices to help dealers meet their goals. He recommends partnering with seasoned experts from PartsEdge or a reliable DMS vendor to navigate the intricacies of inventory coding structures and optimize outcomes.
Embracing Data-Driven Decisions for Enhanced Profits
In wrapping up the discussion, Chuck Hartle stresses the significance of regularly analyzing customer pay data, adjusting maintenance parts pricing, implementing detailed inventory coding, and seeking expert advice. These practices empower dealerships to make informed, data-driven decisions, ensuring they optimize parts profits effectively and maintain a competitive edge in the auto industry.
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Sponsors:
This show is powered by PartsEdge: Your go-to solution for transforming dealership parts inventory into a powerhouse of profitability. Their strategies are proven to amp up parts sales by a whopping 20%, all while cutting down on idle inventory. If you’re looking to optimize your parts management, visit 🔗 www.partsedge.com.
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Takeaways
- Only 15% of parts use matrix pricing.
- Focus pricing on maintenance, not just matrix.
- More inventory sources and price codes enable accurate pricing.
Quote
“Nowadays, only about 15 percent of the parts are actually being matrixed.” –Chuck Hartle
Connect
Chuck Hartle
LinkedIn: www.linkedin.com/in/chuck-hartle-1923ab14
Website: www.partsedge.com
Kaylee Felio
LinkedIn: www.linkedin.com/in/gotopartsgirl
Website: www.partsedge.com