Top Guns – Used motorcycle margins jump
April 19, 2004
Filed under Features
Margins on used motorcycles jumped in February at Top Gun dealers across the country. The February margin was $964 per vehicle, up from $640 in January. By comparison, the margin was only $792 in February 2003, $775, in 2002, and $886 in 2001.
Margins on new motorcycles were $903 per bike, down from $1,048 in January. The margin per bike sold was also down from February last year when it hit $1,237. The margin per new bike sold in 2001 was $1,046 and $1,051 in 2002.
The margin on each new ATV sold in February was $890, off rom $845 in January.
Gross Profit Per Hour
To calculate Gross Profit per effort hour, take the total gross profit generated by your P&A department for a given month or pay period. Divide that number by the total number of hours worked (clock hours) for all members of the P&A team, regardless of title, for the same period. If someone works in P&A as well as another department, estimate the number of hours they worked in Parts.
Average Invoice To Walk-in P&A customers
To see how you compare, determine your total gross sales to walk-in customers. Be sure to exclude all wholesale, mail-order, service through repair orders, and P&A sold with major unit sales. Then divide your gross sales by the number of transactions to those walk-in customers.
OEM Parts Sales Compared To Accessory Sales.
If your accessory sales dollars do not equal your total OEM parts business, your customers are buying from sources other than you.
Service Effective Labor Rate
To determine your effective labor rate, take the total Service team effort hours (techs and all support personnel, including porters) and divide that amount into your gross labor sales for the same period.