Warranty parts mark-up

[CTB]

Hey there! I'm working on the process of requesting a retail mark-up increase on warranty parts. The state of Ohio allows for this but there are a lot of hoops to jump thru. I'm reviewing 3 months of ROs & making lists & calculating the discounts & listing all this on a spread sheet, etc. Has anyone done this? I'm wondering how well it worked out & if the manufacturer allowed for a smooth process change, or if there was any kind of repercussions. Basically, is it worth it?
Thanks very much!!!!

[Gerry Laughlin]

We did it for all 4 of our GM stores. The markup ranges from 68% up to 77% (Cadillac store). We did this about 2 years ago. We also received a nice bump in our labor rate at the same time. As far as repercussions go, we have had zero. It is a lot harder coming up with 100 qualifying RO's than it would seem, but we ran different groups of RO's through to try to maximize it, since engines and transmissions drag it down.
Gerry

[Denise Trimble]

There may be a drawback regarding fee increases for new vehicle "destination" charges and other price increases in the sales side. The dealer I used to work for wanted to do this (Ohio dealer, also) and decided there was no real advantage to the change.

[Gerry Laughlin]

Denise,
Ohio passed a bill, sb242, that prohibits any type of fee being tacked on to the price of New Cars (or anything else). We saw no increase in fees or anything else and all four of our GM stores are in Ohio and on retail reimbursement.
CTB, I have attached a copy of the bill. Any dealer doing business in Ohio should find it an interesting read. So far every time I have quoted something out of this bill to a manufacturer (GM included) they have backed down.
Gerry

[Denise Trimble]

Gerry;
That is fantastic! Thank you for the information.
I also wondered if dealer size/sales volume had anything to do with the fees (prior to the bill passing) when our DP looked into it? He was much smaller in comparison to your dealer and asked about it when acquiring two other GM franchises.

[Gerry Laughlin]

Denise,
It is truly a law that is in our favor. Among a host of other things, under this law, a manufacturer cannot charge you back for "clerical" errors on warranty claims. Well worth the read.
Gerry

[CTB]

That's encouraging. You aren't kidding about it taking a long time to compile a list of qualifying ROs. Damn. Another question; should I include maintenance repair orders (not on the qualifiers list,) that have aftermarket parts? It makes sense to me to include them because they're looking for parts markup but I'd like to make sure I'm not gonna cause problems for myself.

[CTB]

Please excuse my ignorance but how do I get to your attachment?