FTR 065: Bill Haas – Never Let a Third Party Influence Your Profit Structure
Bill Haas, AAM, is the owner of Haas performance consulting LLC, with 40 years of experience in the automotive service and repair industry. Clients have access to Bill’s solution-based focus, expertise, unique perspectives and in-depth knowledge of the industry.
Bill began his career working part-time at a full-service gasoline station in Appleton, Wisconsin. His career includes time as a technician, shop owner, technical trainer and on the staff of the automotive industry’s oldest and largest association representing automotive service and collision repair businesses. While at the association Bill had the opportunity to work with all segments of the industry.
His knowledge of the industry has been shared on many occasions as he has been invited to speak at numerous industry events as well as providing testimony at hearings of the US Congress and several state legislatures on important legislation and regulation affecting the automotive industry.
Bill received the Accredited Automotive Manager (AAM) credential from the automotive management institute in 1996 and has been a member of the automotive management institute’s faculty since 2002.
Bill is also the business manager for NACAT, the North American Council of Automotive Teachers. His services include business management seminar development and delivery, keynote presentations, business consulting, performance coaching, and strategic planning facilitation. Listen to Bill’s previous episodes HERE.
Key Talking Points
Dealer Pricing Margin is a big factor in your overall profitability
You’ve got to mark-up no matter where you buy your parts the parts margin you need to maintain your net operating profit
Includes Insurance/Warranty companies. The owner may have to pay a deductible to you
Always keep in mind that the customer is the vehicle owner not the Insurance/Warranty Company
If our labor rate is set on pure mathematics and the need to generate the right net income then your parts margins cannot be compromised.
How much do you charge?
Based on where you used to work/work for
Can’t have the mindset you charge less you would get more customers and compare pricing to other businesses
Value your services
Not hitting parts gross profit targets excuses- buying parts from the dealer, source of parts should have no effect on what you’re selling parts for
Should have pricing strategy- buy part for X, sell for Y, profit is Z
Never allow an unrelated third party to influence profit strategy- including warranty companies, the vehicle owner is your customer, not the warranty company
A special thanks to Bill Haas for his contribution to the aftermarket.
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