The Relationship Between DRPs and Net Profit

Many shops advocate for non-DRP programs, while others insist DRPs are essential to operations. There’s no one-size-fits-all approach to DRPs, but there are trends. The 2017 FenderBender KPI Survey evaluated just how much DRPs matter to overall net profit margins.
Nov. 1, 2017
As noted when FenderBender got an update on William Parkins’ shops in the August issue, DRPs aren’t for everyone. In fact, in Parkins’ case, they were holding him back. Going non-DRP helped raise his net profit margin to 13 percent in 2017. Many of the shops that filled out the 2017 FenderBender KPI survey mimicked Parkins, as the number of shops with zero DRP partners rose from 35 to 66 percent. FenderBender decided to look at varying levels of DRP programs to see if less DRPs truly does equal higher net profits.
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