8 questions for your Auto Part Department to see if it is profitable

Let us say this Transformer stops in your dealership for some parts. Hopefully, he will transform into a human before he inadvertently creates an exponentially larger doorway. Well, if you don’t have his giant-sized nuts, or bolts in stock, you will convert this transformer customer into a loss instead of a profit.

The parts department determines whether the overall auto dealership revenue and profit will be worthy. Therefore, you must always make sure that you focus on profitability. In order to have a profitable business, you have to make sure that everything is organized, customer service satisfaction is necessary, and retention is as high in quality as possible. These things affect the long-term profitability of the business.

Ask yourself the following questions to determine if your auto parts department is profitable:

1.    Does your staff spend more time searching for parts or providing customer service to customers?
2.    Do you turn away customers because a product is out of stock?
3.    Is your inventory turnover level 12 months or longer?
4.    Is the auto parts department producing a ROI that is not desired?
5.    Is there excessive capital in obsolete or slow moving inventory?
6.    Where is your customer service index in industry standards? Is it below industry standards?
7.    Do you have inventory in areas that are not dedicated to storage?
8.    Can you improve your inventory organization and movement?

If any of your answers were yes, it is time for you to come up with a different storage system.

You could compact your existing shelving/racking utilizing a movable storage which would allow you to 1) free up space and 2) increase your storage capacity, to serve all type of customers, yes! even transformers.

The ActivRAC is one of the Spacesaver storage systems that come highly recommended. This is because it features built in mobilized carriages, which move side to side on a rail system. The industrial grade carriages can be configured with your existing or new shelving/racking. The system allows users to decide how many carriages they want to move simultaneously, which means that you are able to have doubled the amount of space in the same space you normally used for storage.

Regardless of the size of the auto parts, from the small spare part to the big bulky tires for transformers, ActivRAC is able to help.  It is able to hold up to 30,000 pounds in each carriage and up to 60,000 pounds in the back-to-back section.

Lern more about ActivRac here and gain all sort of customers, including Optimus Prime and my kids favourite Bumbleblee.