Common practices for many dealerships is to load the Distributor supplied Recommend Retail (& Trade) Price by a percentage increase and also allocate a certain proportion to freight recovery.
An example of this is a part# with a recommended retail price of $10, on a vendor specific basis this RRP could have an additional 50c added for freight recovery and an additional 8% margin making the RRP $11.34.
Price Loading can be overridden at a customer level (by ticking the ‘no price loading’ box in the customer setup record) for price sensitive customers for example panel beaters.
Dealerships that use this enjoy a much improved parts margin versus dealerships that don’t.
Previously this loading ability was not widely known outside some franchises and was difficult to change the ‘loading’ values once set.
This has now changed; the ‘loading’ values are set on the supplier record in Parts-System-Supplier Maintenance-Flag Settings and can be updated at any time.