Running a profitable shop is a challenge. You’re probably running the numbers multiple times a day—in your head, on paper, in your shop management system—to figure out where you are financially and where you need to be. There are so many considerations with owning a shop, some of them requiring extensive thought and planning, that it’s important to use automated systems whenever possible.
One no-brainer is using a price matrix. You’re probably familiar with the term: a price matrix is a pricing structure that allows you to set your markup on parts and labor. It can be automated in your shop management system so that each time you add a part to an estimate, the part is marked up 30 percent, 50 percent, or whatever your desired margin is—so the price your customer sees is your cost plus your markup. Some shop management systems have only one price matrix, so everything you sell is marked up at the same percentage. Other systems have the option to set multiple price matrices—and that can bring your business some big benefits.
Five benefits of multiple price matrices:
Using multiple price matrices maximizes your profitability.
This is probably the most important reason. You’re in business to make money—to support your family, to support your employees, to be able to retire—so you should be maximizing your profit on every part and every job. Being able to customize the markup for individual vendors allows you to buy at the best price and sell at the best, most profitable markup.
Using multiple price matrices allow you to “set it and forget it,” which saves you time and effort.
One less thing to think about is a pretty appealing benefit. And with price matrices set up in your SMS, the prices that appear on estimates and invoices are automatically marked up at the percentages you choose. You don’t have to do a thing to make sure the price and markup are correct for each and every job.
It’s easy to set up multiple price matrices with the right SMS.
Once you’ve set up one matrix, it’s just a few more steps to set up additional matrices. Customize your markup based on the vendor, the part type and other categories. Set it up once and you’re good to go. Making adjustments is simple too.
Price matrices make markups seamless to customers.
Customers see one price listed on the estimate and invoice and that makes things simpler for them. That’s not to say you won’t encounter questions about pricing, but it won’t be because of complicated or confusing pricing.
Greater profitability means you can breathe easier.
More money doesn’t solve every problem, but it certainly makes life a little easier. And with everything you have to think about to keep your shop up and running every day, every dollar counts. Bringing in more dollars with multiple customized price matrices can help you breathe a little easier.
Are you ready to set up multiple price matrices and maximize your profitability? If you don’t already have an SMS with that functionality, ALLDATA can help. Get in touch today for a demo of ALLDATA Manage Online and see all the benefits it can bring your shop.