Most dealership owners do not get into business because they love numbers. They get into business because they love equipment, customers, and the independence that comes with building something of their own.
But one way or another, you are going to end up at the numbers anyway.
Even if you are not a “numbers person,” you need to be tracking these five at a minimum: Sales Profit Margin, Service Profit Margin, Parts Profit Margin, Rental Profit Margin, and Whole Dealership Profit Margin.
These tell you how much of the money you bring in you get to keep — and which part of your business is contributing the most.
See below for a little more breakdown of these measurables.
1. Sales Department Profit Margin (PM)
What percentage of every sales dollar stays after cost of goods, commissions, and delivery costs?
Common costs to include:
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Unit cost
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Freight or setup
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Sales commissions and bonuses
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Advertising or floorplan interest tied to sales
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Any parts or accessories added at build or by customer request
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Labor related to pre-delivery setup or customization
A healthy sales department does more than move volume — it contributes margin that feeds the rest of the store.
2. Service Department Profit Margin (PM)
After you pay your techs, buy supplies, and cover shop overhead, what’s left?
Common costs to include:
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Technician wages and benefits
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Shop supplies and consumables
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Warranty write-offs or rework
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Service admin or dispatcher wages
Service profit is stability. It keeps the lights on even when sales slow down.
3. Parts Department Profit Margin (PM)
Parts can quietly make or break your month.
Common costs to include:
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Cost of goods sold
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Shipping and freight in/out
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Parts staff wages
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Obsolescence or discounts
Strong margin here covers mistakes elsewhere — but only if you know it.
4. Rental Department Profit Margin (PM)
Rentals can be great revenue, but only if utilization outweighs cost.
Common costs to include:
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Depreciation or lease cost of units
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Maintenance and repairs
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Delivery and pickup labor
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Rental admin or scheduler wages
When you track rental PM, you see if your fleet is working for you or sitting idle.
5. Whole Dealership Profit Margin (PM)
Finally, look at the big picture: after all direct costs and operating expenses, what percentage of every dollar do you keep?
Common costs to include:
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Admin and management salaries
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Facility costs (rent, utilities, insurance)
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Marketing and general overhead
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Office, accounting, or technology expenses
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Every department’s individual Profit Margin contribution
This number is the truth about your business. It tells you how much of what you earn actually becomes profit.
You do not need a complex dashboard to get started. Start with what you have, separate it by department, and look at each Profit Margin side by side.
Healthy dealers know where their profit comes from.
Happy dealers use that knowledge to make better decisions — and more money.
Follow Healthy Dealer, Happy Dealer on Facebook or LinkedIn for practical ways to measure, manage, and grow your dealership’s profitability.
