Go to Parts → Optimizer
The Optimizer feature must be enabled on your shop account to access this page. If your account is not enabled, you may need to upgrade your subscription plan. Contact us here for more details.
Activate Optimizer
Now it’s time to activate the Optimizer. In order to start, you must have a minimum sales history of around 30 days so the Optimizer has enough data to work with. When you have sufficient sales history (and the Optimizer added to your subscription) you will then see the ability to edit settings under the Parts > Optimizer page.
Until the requirements are met, your Optimizer 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 Gross Profit Parts Optimizer and expand the various settings within this page.
If you want to toggle the GP Parts Optimizer to 'OFF' the following message will appear:
Decide on a Max/Min Markup
Once the Optimizer is toggled 'On' you will then 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)
Pick Target Gross Profit
Next, enter your Target Gross Profit; this is the field (shown below) where you enter the desired GP return 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. If you discover that you’re losing GP % because you have too many “exceptions” (tires, 12v batteries, fluids) you can cheat this number up to compensate. Find more detail about “exceptions” to the Optimizer in the Exceptions article.
The GP Optimizer Example Matrix
Shop Manager’s Parts GP Optimizer asks you a few simple questions to understand what your goals and guardrails are in order to help you achieve proper margins on parts sales.
Once you set your target gross profit margin, minimum markup for a part, and maximum markup for a part, it learns from your data over time and adjusts your matrix to ensure that you hit your Target Gross Profit margin.
This means you can focus on other parts of your business and let the optimizer markup your parts and get you the profits that you need.
