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One of the biggest challenges dealers face when launching an OE accessory sales program is appropriate pricing so that every department gets a share. Typically a dealership’s parts department charges 25-40% mark up on replacement parts and the service department charge their regular labor rate for install. But, they are typically not replacement parts.
Just like fashion accessories they are often an impulse buy, sold in high volume for lower margins. In order to remain competitive with the store down the road selling aftermarket accessories should be priced with a 10-15% markup based on brand and value. Now that they are priced appropriately, revenues may be split between parts, service, and sales.
