Parts Warranty markup

[lstacy65]

I'm new to GM parts and this DMS ( dealertrack ) but I seem to be low on gross profit margin for warranty parts. Should be in the 27.5 % range but I'm always hovering at about 24-25. Anybody else have the same issue ?

[RBrown]

Actually, in a perfect world, with 40% markup, you should be running 28.6 g.p. BUT, with the 24/24 maint plan and other flat paying programs, your gross is going to suffer.

[Zep33]

Yup, it's probably all those oil changes that GM only pays a flate fee on. I have to bill them out here at 10% over cost. That does cause some fluctuations in GP month to month

I know some dealers bill them out at full warranty and charge the rest to sales or advertising.