Discounts to Service Customers

[Fixed Ops Mgr]

One thing to consider is are your loyal customers that you see several times a month or more and buy parts and service from you really costing
you profits over a full retail customer? I would rather give a discount of 10% or 15% off GM list price to our loyal customers who purchase from
us many times per month in parts or service than to sell at full retail for a customer who we may see every few months or only once. Selling
at full retail is not always making you more money, sometimes volume an loyalty matters!

We work off of GM list price on all customers and the loyal ones get a 10% or 15% discount on parts depending on their purchase volume.
We work off of GM trade price when dealing with our large volume wholesale customers.

[mightytitan9]

One thing to consider is are your loyal customers that you see several times a month or more and buy parts and service from you really costing
you profits over a full retail customer? I would rather give a discount of 10% or 15% off GM list price to our loyal customers who purchase from
us many times per month in parts or service than to sell at full retail for a customer who we may see every few months or only once. Selling
at full retail is not always making you more money, sometimes volume an loyalty matters!

We work off of GM list price on all customers and the loyal ones get a 10% or 15% discount on parts depending on their purchase volume.
We work off of GM trade price when dealing with our large volume wholesale customers.

Thanks for your comment. The issue is my predecessor would give out Trade pricing to almost everyone. He didn't have to worry about the numbers or anything of that sort.

We have set up a policy where we "grandfathered" in some of our large volume previous customers who have received GM Trade Pricing (many of these are just individuals that work on stuff or companies for their company vehicles) but we are transitioning to what a preferred customer discount to our small volume customers of 15%. This 15% is also going to apply to the service.

On a side note, I got told by a body shop yesterday that I was way too high on my pricing. Ever since the collision link happened, our Autosoft will not price collision parts. For a while we were having to run every collision part of D2D to price it. I got tired of that and I ran a matrix where any item that isn't priced, automatically gets priced. I set the trade price a cost +40%. And retail at cost +67%. I understand my pricing can vary from a dealer 60 miles away that this body shop has decided to buy from, but GM's trade price is such a joke that It's hard to care. When a trade partner can make $170 and I'm making $25, that's an issue to me. Anybody have a similar situation and suggestions on how to deal with it?

[MR GOODWRENCH]

One thing to consider: if you are getting sublet work from independent body shops for things they cannot perform in-house, chances are that they are submitting your entire repair order to insurance as a sublet repair. Now, I don't know how all insurance companies handle sublets, or what markup they will allow to a body shop for administration, but if my repair order parts are billed at MSRP instead of wholesale, then I get paid on MSRP on not wholesale, the body shop really has nothing to gain or lose on the transaction price, and the insurance company pays the prevailing rate on parts and labor.

Any small victory I can get.....