NAPA TRACS is not only a great tool for managing your shop, but its also a powerful toolthat will ensure you hits the target you need to increase shop profits and make more money. In the next several editions of TRACS Power Tips, we will we sharing ways to improve the profitability of your shop by utilizing several powerful tools available in TRACS.
The First Step: Take control of parts Pricing
To accomplish this you’ll want to set up what is known as a pricing matrix. A matrix uses a sliding scale to maximize overall parts profits.
Some parts will not work with your matrix. These “loss leader’s” are typically wipers,oil or any item people can easily find at other retail locations. To avoid loosing customer to price on these items. you should make a list of these items and set Pricing rules, this will give your shop a compatative edge for the price conscious consumer.
Pricing Rules allow you to set pricing by specific item, category, manufacturer and even vendor , these rules will override your matrix on “price sensitive” items.
After you have established pricing, set up a warning for when your gross profit falls below a preset percentage you wish to make on a line or item and still be profitable is 40%, then set the profit margin alert to 45%.
When creating a Estimate or work order in TRACS, parts and labor that are under profit margin you set are shown in red. In this example , labor hasn’t been entered
and TRACS indicates the shop is under margin on oil. Pricing matrices and Rule may be set up on other parts and labor to make up for loss of margin on oil.
What NAPA TRACS users are saying…
“Using the parts matrix effectively is one of the most impactful tools we have . I try to maintain a 50% gross profits on parts and TRACS helps me get there. We also use the PROlink and online ordering functions constantly. it is very handy to compile estimates and other parts online.”
Kit Johnson
J4 Automotive
East Helena,MT
“The pricing matrix and rules setup is about building trust with my customer. It helps me to increase my profit percentage where appropriate and price commodity items where are they in line with the completion. My service writer is able to sell the job faster without calculations or questioning from the customer about costs. i am able to maintain credibility and confidance of thr customer without question on specific parts.”
Randy Hancock
Randy’s AutoCare
Littleton,CO
“Basically if you are not using TRACS, you are not getting 100% from your business. The first year i used TRACS, I increased my net profit by aproximately 40% by using the matrix and the rule that automatically went into effect on a car-by-car basis. i was able to determine exactely how much i was making, or not before the car left my shop. Another plus from TRACS, is the time i save by ordering directly from NAPA with the click of a button and no incrementle phone calls.”
Sean Miller
Franks Auto Inc
North Ogden,UT