Set Goals for Your Gross Profit Margin (GPM)
Setting and hitting appropriate GPMs is crucial for your automotive repair shop to maintain success. At a minimum, set goals to achieve a 50% profit margin on sales of parts and accessories. Parts and accessories purchased from dealerships are normally priced somewhere lower on the spectrum, while parts and accessories purchased from jobbers are normally priced higher on the spectrum. An overall pooled margin of 50% is a realistic and attainable goal.