DealersEdge Professional Forums

Does anyone remember what we used to get for discounts and return reserve percentage from GM prior to RIM ? I really don't know if I want to know because I might start crying like a baby.

Don't know why these numbers are hitting me but I think it was like 5% on DRO/QPO 2 or 3% on CSO..

The reason I ask is because I just used all but .70 of my 2016 return reserve and its of course not nearly enough. There is a culture here that seems not to care about bringing parts back. They won't return it to me because I give them a hard time. They will bring it back to one of the younger counter guys and turn around and mumble something about the customer didn't return or didn't need. To many crystal ball diagnosis. Just had one where they ordered a $980.00 cat conv and a bunch of gaskets. A week later the same tech returns the cat and orders an engine....... WHAT Well I just got in and........ I'm waiting for the Service dept to tell me where they want it. I told them no charge for the vasaline............

It just seems it never used to be this hard to keep above water before RIM and the big squeeze........

CHUCKINPARTS wrote:The reason I ask is because I just used all but .70 of my 2016 return reserve and its of course not nearly enough. There is a culture here that seems not to care about bringing parts back. They won't return it to me because I give them a hard time. They will bring it back to one of the younger counter guys and turn around and mumble something about the customer didn't return or didn't need. To many crystal ball diagnosis. Just had one where they ordered a $980.00 cat conv and a bunch of gaskets. A week later the same tech returns the cat and orders an engine....... WHAT Well I just got in and........ I'm waiting for the Service dept to tell me where they want it. I told them no charge for the vasaline............

It just seems it never used to be this hard to keep above water before RIM and the big squeeze........

This will be the first year in about 5 years that I have had to use a portion of my return reserve. Most of the time, I will take the cash conversion and get a 15k credit in May. That being said, you need to have stricter policies in place and have your staff enforce them.

1) I have an agreement with service. If they order it incorrectly or cannot get the customer to return in 60 days it goes to their policy. We have one tech that was really bad about carpet bombing repairs and
bringing back what he didn't need. That changed after I began to charge the shop for his returned parts

2) At front counter, there are no returns after 30 days. absolutely no returns on CSO or electronic parts, and finally 35% restocking fee on returns of currently stocked parts.

This will be the first year in about 5 years that I have had to use a portion of my return reserve. Most of the time, I will take the cash conversion and get a 15k credit in May. That being said, you need to have stricter policies in place and have your staff enforce them.

1) I have an agreement with service. If they order it incorrectly or cannot get the customer to return in 60 days it goes to their policy. We have one tech that was really bad about carpet bombing repairs and
bringing back what he didn't need. That changed after I began to charge the shop for his returned parts

2) At front counter, there are no returns after 30 days. absolutely no returns on CSO or electronic parts, and finally 35% restocking fee on returns of currently stocked parts.
scott2112 Posts: 143Joined: Tue May 01, 2012 6:00 pmLocation: Xanadu



Been here for 7 years and previous dealer for 23 years. Never had a problem at the old store because everyone knew the policies which are very close to yours. It has been very difficult to implement rules here because no one will take responsibility for there mistakes. We make mistakes in parts but I don't ask service or the body shop to pay for them. Like I said its a culture from the top down and when something like the example I gave about the cat conv happens.... nothing happens. I'm sure the issue was never even addressed with the tech. Mistakes will happen and sometimes they can be worked out but no matter how many times I explain the problems of doing it this way there are no sympathetic ears listening. Just have to keep trying and keep all my documentations.