PARTS V SERVICE RIDDLE

[cville1987]

I use a matrix here, internal is cost +100% unless it is extemely expensive. I sell wholesale at cost + 40%. I don't sell aftermarket unless I have no choice or it's a brand X car. I sell anything not GM at cost x 2. I know the wholesale is my competitor, but they are never going away and they will just get it from the huge wholesale dealer in Tulsa, which means I make nothing, so that argument is invalid. My DP hates my internal mark up but daddy said too bad. Lol

Unlike Scott, my service dept does share in the price cutting, usually he takes the full brunt and doesn't even ask me to change prices, but he discounts the hell out of oil changes and charges me half so that is why.

[tmundal]

I used to have this battle with the cry baby used car manager all the time. So the dealer said I could mark up internals 1.4. So I hold to that. Except I usually bump the hell out of my cost, and put the difference to my 679 account (687 for GM). It may not reflect as nice on your doc sheet... but always get your gross, even if you have to make it look like you aren't. I've never met an owner or gm that complained about having too much money in the adjustment account.

[partsman103]

I've never met an owner or gm that complained about having too much money in the adjustment account.

I worked previously at another dealership and the GM would often comment that my 687 account was much higher than the national avg....and in turn understood what we were doing. He was not to pleased because he felt that internal depts were being "slighted". So instead of putting all discounts in 687 we would put some of the differences against Semi-Fixed Expenses.