DealersEdge Professional Forums

Just a question for the more experienced in the business. Im a 10 yr parts person with only 4 yrs mgr experience. id like to ask if there is something im missing. Our dealership is fairly small but growing, 4 out of 5 used units are being sent elsewhere, or parts are being purchased elsewhere instead of internally. I do understand the need for the occasional quick, inecpensive repair, but this is like I said 4 out of 5. The way I was told this was set up was that "EVERYTHING" is suppose to go through serv/parts dept. when it comes to sales needs that we can provide. This however, isnt the case here. When the Srv Mgr or I try to explain that there are procedures to follow to the salesman, they walk away. Subsiquently, instead of "doing it right", they are just having checks cut to take the place of the PO they would get if things were done as structured.
So, what am I missing besides the sale? Any suggestions as to how to approch the problem?
I appreciate any feedback and time that you may give in response. Thank you.
Humble partsdude

It is high time to get the dealer prinicpal or general manager involved. This can only happen if they allow it to happen. A couple of immediate red flags on your situation: Number one -- who in the office is cutting these checks and who has to approve before check is cut? Should be the same as a purchase order -- restricted access and approval. Number two -- this sounds like a situation that is prime for a kickback scenario: it is suprisingly common how many used car managers get a kickback from whoever they are sending this work to or possibly from a supplier they are in bed with. This happens with sublet repairs, sublet accessory installation, sublet detail and recon work, supplies, wholesalers, auctions, and on and on. When someone pays lip service to agreeing with how things are supposed to be done and then continues to deviate they likely have some sort of vested interest in doing so.

You will likely never solve this issue on your own. It needs to come in the form of a mandate from ownership / upper management and creation of significant penalties for failure to comply (such as the unemployment line).

Scot Strong

Yeah. What Scot said. He's right on the money

DD

Know of a general manager who has done ALL of what you speak of, Partsdude. Separate agenda......hmmmmm....seems like he had a 'friend' everywhere except at the dealership. When they look like a duck.......

Partsdude, what Scot said. That is absolute bull-sh&t!! It has to come from the man at the top. EVERYTHING, including outside purchases should be run through you. Tell your Sales Manager you'll be buying your next delivery vehicle from the dealer down the street because you can "get a better deal". My personal opinion is that anyone who can't see the "big picture" of keeping your store (where they work)healthy should be fired ASAP. It's 2006 people, do the math.

It comes from the top down! Great topic....

WE HAD THE SAME PROBLEM. PARTS BEING BOUGHT FROM A PARTS STORE. LABOR BEING DONE OUTSIDE OF DEALERSHIP. ONE DAY PARTS STORE CALLED AND ORDERED A PART THAT WAS DEALER ONLY. I BILLED THE PARTS STORE AND THEY PICKED IT UP. THE NEXT DAY I GET BILL FROM THE PARTS STORE FOR THE PART I SOLD THEM. THEY SOLD IT TO OUR USED CAR DEPT. I GOT TO BILL IT BACK TO THE USED CAR DEPT. THAT PART COST THEM ABOUT $50.OO MORE THAN IT SHOULD HAVE.

AS FAR AS DOING LABOR OUTSIDE OF THE DEALERSHIP, IT COST THE DEALER A LOT MORE THAN DOING IT IN HOUSE. IF A JOB IS GOING TO TAKE 3 HRS, INTERNAL RATE AT $70.00 TECH IS PAYED $18.00 HR DEALER PAYS $54.00 TO THAT TECH THE BAL STAYS AT THE DEALERSHIP.SUBLETING THE JOB AT $60.00 AN HOUR SEND $180.00 OUT THE WINDOW.

partsdude,
approach this from a sales view
take the last 60 days of invoices that sales sent units out for repair, compare apples to apples labor dollar the same sit down with sales manager, service manager and general manager lay your cards on the table, you would be suprised what you find out, remember the sales people only hear what their customers tell them "how expensive your shop is" you need to educate them. one thing for sure will come out either way you will know if your to high in price then suck it up and change or they are spending to much and loosing profit...

HHmmmmm......where are all the GMs and Dealer Principals? This is your forum. No constructive comments on this subject?
Partsdude, if your GM or owner doesn't understand the benefits of keeping all work inhouse and/or won't kick your UC manager's *** when he goes out of bounds, there is nothing more to be done by you.