Labour Sales per Parc Unit

Labour Sales per Parc Unit

Annualised Labour Sales x Vehicles in Parc

Guideline: Own Policy

Description:

This is a key performance indicator that you need to thoroughly examine and fully understand before you make any judgements whatsoever as it makes some far- reaching assumptions. Its purpose is to ascertain the value of labour sales that you are achieving as an average across your vehicle parc.

This example below shows that for every vehicle in the parc you are currently achieving an average Labour Sales value of R426.

Different manufacturers account for vehicle parc over different spans of time. For instance, some manufacturers use a five-year parc, some use a seven-year parc and others use a ten-year parc.

Also note that the age span of vehicle parc for the Bodyshop is often different to that of the Service and Parts Departments. Be sure to obtain the correct interpretation from your respective manufacturer.

Example:

A) Annualised Labour Sales = R664,848
B) Vehicle Parc = 1,560
C) Labour Sales Per Parc Unit = R426 (A รท B)

Discussion:

This statistic is not to be used to assess territory potential because it is taking your current labour sales as opposed to what could be achieved.

Related Terminology:

» Motor Retail Terminology and Concepts