Parts matrix

Definition

The markup schedule a shop applies to parts by cost tier, where half the gross profit sits.

Why It Matters

Labor rate is the number every seller quotes and parts is the number that decides the year, because a shop with no matrix is selling parts at a flat markup and giving away margin on every expensive component. Ask what the parts gross profit percentage has been for three years and whether the matrix has been touched, since a shop that has never raised it is either leaving money on the counter or has already lost the customers who would have noticed.