This KPI shows the profit percentage of each part sold by the dealership, to see which parts are the most profitable and which are not performing as desired.
The margin can be analyzed for each customer; for each customer type (resellers, farmers, etc.) who may have different pricing policies; for geographical regions; etc. This deeper analysis can help you find opportunities ti adjust pricing and maximize profit.
The parts sales margin can be calculated taking into account replacement cost, FIFO cost or historical cost; each one will offer different conclusions.
