Warranty mark up

[jdpetey]

Legislatures in states like PA & NC passed laws prohibiting manufacturer imposed reimbursements for warranty work. Only way I could think of stating that.

There is a process in place where you have to provide documentation that you are consistently maintaining an average margin/markup on Customer Pay Repair Orders that can in turn justify the manufacturer should also be subject to.

Documentation would be something to the equivalent of 100 successive CP ROs showing consistent margins being obtained.

A consultant amassed the needed docs on several occasions with intervals in between to provide to GM.

It takes a while to complete, but it's worth the effort.

Makes one helluva difference on high dollar items like complete wheels sets and drivetrain work.

If everyone were doing it, it might make more sense for GM to reconsider some of their ridiculous pricing.

[camaroman]

Makes one helluva difference on high dollar items like complete wheels sets and drivetrain work.

The downfall I see to getting GM list is if you do engine and transmission replacements under warranty. The list prices for those items are way under the cost + 40% you would get if you were still under the old program. We have done quite a few of them and it definitely would hurt.

Our owner also mentioned the surcharge on new vehicles as a factor also.

[TimK]

Makes one helluva difference on high dollar items like complete wheels sets and drivetrain work.

The downfall I see to getting GM list is if you do engine and transmission replacements under warranty. The list prices for those items are way under the cost + 40% you would get if you were still under the old program. We have done quite a few of them and it definitely would hurt.

I don't think anyone gets GM list for warranty. It's all based on a cost plus markup.
We get cost+97 on everything, including engines and transmissions.

[OilleakEarl]

GM dealers get cost plus 45%. You can apply for your "prevailing retail rate" and you'll get it if you can prove it by submitting repair orders showing customer pay mechanical repair parts pricing. At one time we were getting cost plus 111% ( we had an aggressive matrix system). The thing is, GM will charge the dealer a surcharge on the new vehicles. We were being charges $1200.00 per car at the Cadillac dealer where I once worked.

[PartsPlant81]

You have to submit a certain # of customer pay RO's but they exclude certain types of parts (oil filters, bulbs, tires, batteries, brake pads/rotors) so it is a tedious task to say the least.
But worth it when you can get significantly more than Cost + 40%.

[Denise Trimble]

Cost + 40% here. Our Sales dept. likes paying the lower/standard delivery charges on their new vehicles.

[JMShocker2010]

We were higher for a few years, but upper management got tired of paying the surcharge on new vehicles, because no one around us is doing it either