outside part purchase

[PartsPlant81]

I don't need an example. I'm not on here as an expert. I don't know everything. I use this forum as to gain perspective and learn how to make my dealership the most profit possible. I'm happy that you retain 45% of your gp. We are waiting to see what retaliation happens to dealers like you who have upped the gp% first. And they will retaliate. Like I said many, many times before I am a new manager, new to GM, and no college ever. However, I am a professional. I've been to the fixed ops academy, and learned the NADA accounting guides for GM. I'm not going to keep putting this on here. GM does not want us using this formula. Our consultants are now loving the results. Simply put, you keep doing what you're doing. It's working for your dealer. 45% retention is awesome. I'd just be making them more money than you.

There is no retaliation. It is a federal law that when you compile the proper data and prove that you make a certain amount of markup and rate of labor General Motors has to utilize the data you provide them to convert it to your warranty parts markup and warranty labor rate.
Have your consultants look up the lawsuit and spend months compiling the data.
You said in a previous post you markup your part 40% after you change the cost; if you are only getting 40% markup that you means you are only generating 28.6% gross profit on your warranty parts. How would you make my dealer more money when I generate 45%GP on 81% markup?

[partsman103]

If we purchase a part from anyone other than GM for a warranty repair, we receipt the part in via our DMS using the actual GM cost. (as if part came off the shelf).
The difference of cost - purchase price is put to 246 account.
Copy of invoice from where part was purchased is attached to the repair order, PLUS we stamp the repair order with "Emergency Purchase" in bright red ink. Service writer creates an additional line for the purchase and the warranty clerk submits / collects the reimbursement from GM then credits the 246 account. So its a washout basically.

Now if its a non warranty purchase for service dept repair, we cost out part on repair order at the price we were invoiced for b/c Parts/Service split the profit.

[PartsPlant81]

If we purchase a part from anyone other than GM for a warranty repair, we receipt the part in via our DMS using the actual GM cost. (as if part came off the shelf).
The difference of cost - purchase price is put to 246 account.
Copy of invoice from where part was purchased is attached to the repair order, PLUS we stamp the repair order with "Emergency Purchase" in bright red ink. Service writer creates an additional line for the purchase and the warranty clerk submits / collects the reimbursement from GM then credits the 246 account. So its a washout basically.

Now if its a non warranty purchase for service dept repair, we cost out part on repair order at the price we were invoiced for b/c Parts/Service split the profit.

Exactly what we do.