Overview
The Shop Manager AI Parts Matrix is a groundbreaking tool designed to automate and maximize your parts gross profit. Unlike traditional, manually-configured parts matrices, the AI Parts Matrix leverages advanced cloud-based computing and machine-learning principles to analyze unlimited inventory and sales data, regardless of your business size.
By assessing your shop’s actual parts sales, it generates a custom, optimized markup curve and dynamically adjusts as your sales mix evolves. Simply set your desired gross profit percentage, and the AI Parts Matrix will automatically fine-tune pricing to achieve and maintain your target—ensuring profitability with minimal effort.
The purpose of this article is to review where to find the AI Parts Matrix and how to activate and configure it within Shop-Ware. Continue reading to get started.
**NOTE: The AI Parts Matrix must be included in your Shop Manager subscription for the tab to be visible. If you would like to speak with someone to review your subscription and add the AI Parts Matrix, please contact support.
Table of Contents:
- Navigating to the AI Parts Matrix
- Activation
- Configuration
- Deactivating the AI Parts Matrix
Navigating to the AI Parts Matrix
If the AI Parts Matrix is enabled on your account, you can access it by navigating to the Parts tab and selecting AI Parts Matrix. Access and editing capabilities depend on individual staff permissions.
Activating the AI Parts Matrix
Now it’s time to activate the AI Parts Matrix. In order to start, you must have a minimum sales history of around 30 days so the AI Parts Matrix has enough data to work with. When you have sufficient sales history you will then see the ability to edit settings under the Parts > AI Parts Matrix page.
Until the requirements are met, your AI Parts Matrix page would look like the image below:
Once the parts purchases requirement is met, you will then be presented with the option to turn on the AI Parts Matrix and expand the various settings within this page.
Configuring the AI Parts Matrix
After the AI Parts Matrix is toggled ON, you will then be presented with a variety of options for you to configure. Let's review those options below:
Pick Target Gross Profit
After activating the AI Parts Matrix, the first field to configure is where you will enter your desired Target Gross Profit (shown below) across all of your parts (unless exceptions are applied).
The range for target GP is 20% - 80%. The typical target is 40-60% depending on your service mix.
You can adjust this value anytime if/when your profit target goal changes.
Decide on a Max/Min Markup
The next 2 fields to the right of your Target Gross Profit allows you to assign maximum and minimum markups. Maximum markups should be used for the very least expensive parts (i.e. drain plug washers) and minimum markups for the very most expensive parts (i.e. rebuilt engines).
The markup range for the very least expensive parts is 2.0 to 10.0. You may enter any number within that range. For example, a value of 6.0 would sell a $0.25 part for $1.50. ($0.25 x 6.0 = $1.50)
The range for the most expensive parts is 1.0 to 2.0. You may enter any number within that range. A value of 1.5 would sell a $3000 part for $4500. ($3000 x 1.5 = $4500)
Notice that there is an optional setting that you can select to always use the highest part price when the list price is higher than the AI Parts Matrix price.
As you adjust the fields, the AI Parts Matrix will automatically update to reflect your changes. The update process typically takes less than five minutes. During this time, the matrix will be greyed out. Once the calculation is complete, it will reappear with updated values. You can track progress in the upper right corner, where a growler message will indicate the completion rate and notify you when it's done.
AI Parts Matrix Exceptions
Below the AI Parts Matrix table, there is the ability to create group exceptions from the matrix, use this option when you want to control and apply your own GP%, independent of what the AI Parts Matrix might suggest.
Similar to when you were setting up your target GP and maximum and minimum multipliers, there is an option you can select to use the list price when it's higher than the AI Parts Matrix Exception price.
When checked, the system will take the higher price between the list price and the AI Parts Matrix Exception %. When unchecked, the system will always use the AI Parts Matrix Exception %.
Deactivating the AI Parts Matrix
If you need to deactivate the AI Parts Matrix, simply toggle it OFF. A confirmation message will appear, outlining the effects of deactivation and giving you the option to cancel or proceed. You can always toggle the AI Parts Matrix back ON at any time.
If additional assistance is needed when setting up the AI Parts Matrix, please contact support.