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International Automotive Technicians Network
Re: PROFIT INDEX
Posted to Shop Management Forum on 1/7/2000

Using that formula, you would have to retail your parts for 150% of your cost and turn the inventory 2.5 times per year to hit the 'guide' (that would calculate out to a guide of 125). My experience is that 2.5 times inventory turn is the minimal acceptable; m... Login to read more.