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I'm agonizing as to the best way to loose the least amount of money. Our guy ordered the incorrect part number for a SRTA trans. Now I would like to return it and loose the least amount of money. It's not a popular number and I don't have OE Connection to list it on at a discount to entice sales.

The PDC has this number in stock at local warehouse and can deliver the next day. That's pretty hard to compete with. Especially considering purchase loyalty.
Other than taking it out of my counterman's commission I'm going to have to accept a loss. I know returning it will most likely incur shipping costs.

As far as I can see the choices are:
1) return CSO Ordered in error and take a 35% hit. That's $560 plus a $700 Core
2) Use return reserve and just not send as much back.
3) Hold on to it and hopefully sell it
4) Other???

Thanks for your help

Tough spot to be in for sure. As far as option 1, you will still get your core back when you send back this way.

One thing you may consider is getting in touch with your rep and seeing if they could get a special return put in for you that wouldn't affect you at all. You may have to bow down and kiss the ring, but it would all be worth it to not take the hit on your reserve, or on a CSO return.

PartScott wrote: You may have to bow down and kiss the ring.

NIce! Don't forget to drink the kool-aid

PartScott wrote:Tough spot to be in for sure. As far as option 1, you will still get your core back when you send back this way.

One thing you may consider is getting in touch with your rep and seeing if they could get a special return put in for you that wouldn't affect you at all. You may have to bow down and kiss the ring, but it would all be worth it to not take the hit on your reserve, or on a CSO return.

I agree......... Call your dealer liaison at your facing PDC and explained that you screwed up (they like hearing that because they say it so much about themselves) and was wondering if something could be done.

If you have a good relationship with your contact at the PDC, they can do a special return for you.

Always a good idea to find some nice person there and form a relationship. Never know when you'll need it.

Zep33 wrote:If you have a good relationship with your contact at the PDC, they can do a special return for you.

Always a good idea to find some nice person there and form a relationship. Never know when you'll need it.

I agree with Zep. Might as well go direct to a person that can do what you need. I always try to play nice with our PDC person. Luckily, she's great to work with.

If you do have to pay to return it than the 35% restock is the better bet than using your return reserve. ex. To do a cso return and pay %35 - part has cost of $2000, It would cost $700 giving you a $1300 difference. Or you could use return reserve but the problem with that is $2000 of reserve converted to cash will cost you $500 and the difference is $1500. Therefore, you would save $200 dollars by returning said part as a cso return.

Another thing you could do if you have the space. GM gives you twelve months to apply for a cso return. If it hasn't sold by the 11th month, return it. That's our process on all special order returns.

GMpartsLux wrote:If you do have to pay to return it than the 35% restock is the better bet than using your return reserve. ex. To do a cso return and pay %35 - part has cost of $2000, It would cost $700 giving you a $1300 difference. Or you could use return reserve but the problem with that is $2000 of reserve converted to cash will cost you $500 and the difference is $1500. Therefore, you would save $200 dollars by returning said part as a cso return.

Another thing you could do if you have the space. GM gives you twelve months to apply for a cso return. If it hasn't sold by the 11th month, return it. That's our process on all special order returns.

Excellent info THANK YOU!!

I agree with everyone on contacting your PDC liason. Then your DMA If they say no to the special return.

I know we all have obsolescence, and our return reserve will never be enough. But, you get the most for your money by using the cash conversion. If any managers aren't using it you're missing out on a useful tool. I'll use the same $2000 cost from above. If you can accrue what you need in a month great. However, you can elect the conversion until you hit your number. It doesn't have to be the full $2000.

The conversion works like this: GM will convert your return reserve at 75% the dollar amount. Using the $2000 cost you only need $934 of return reserve converted. $934 X 0.75 = 700.50. $2000 cost of SRTA X 0.35 = 700 Do not factor in the core charge. Cash conversion is paid out on your open parts account just like the 4.25% bonus. Ours goes straight into the 687 account. And, when you do your CSO returns that's where the 35% is debited from anyway. Just my two cents worth but I'd use the conversion. Even if you elect to convert $2000 you will be way ahead in lieu of just using the monthly return reserve. $2000 dollar for dollar monthly or .75% (1500) / 0.35 = $4285.71 of parts cost being returned CSO. Using the above numbers. Yes, it cost you $500 of dollar for dollar return reserve. But, it doesn't really cost you anything on the profit. Besides, you can still wait to send it back by month 10/11. Who knows, maybe it'll sell by then. Your dealer has already paid for it anyway.

I use it to stop the growth of dead capital (obsolescence).

Be careful when returning powertrain or fascia's using return reserve. Even if you got the standard 1% discount they will hit you with the max truckload discount when you return it.