Accessories and EBE

[oakleyc2]

My accessories rep emailed me with our sales data for the quarter and where we stood to hit our EBE objective. It didnt include the sales for January. Which would of put us over our objective for the quarter. He said that GM gave all dealers a pass for january as a ramp up month due to new stipulations for ebe. Have you other gm dealers seen the same thing?

[Ichabod Farquar]

You are correct. GM excludes January 2018, as a trial month. We too absolutely killed the objective for January. With the Feb & Mar remaining objective we stand no chance of hitting it.

I have been asking for how the objective is calculated and no one knows. And by no one I mean NOBODY can tell me how it is calculated. It is obviously weighted by models projected to sell. Nobody seems to know what a Silverado is "worth" vs. say a Spark or a Buick (little to no accessories).

If anyone knows what the calculation is - post it here, please.

[possum]

I don't think it matters what each model is worth, GM is going to set your total accessory purchase objective based on sales objectives and I'm doubtful you could appeal it. If you don't hit the number, you're out that money in the front end. It used to just be a bonus on top of EBE but now it's incorporated directly into the program to force dealers to get on the accessory wagon or lose. These ADI's must really have some pull to be able to stick their hand into the sales process and demand accessory purchases. It looks like extortion to me, but whatever as I get paid on parts sales.

Your Accessories purchase objective per month is a "performance" objective like the one on PASE. It represents 7.5% of the possible EBE quarterly payout. My DP believes that it is more of a "conformance" requirement, ie: if you miss it you get NO EBE monies. I don't think it's that way, but what he says goes and it's up to us as Managers not to lose these payouts. If you don't have a legit accessory sales process, it will take a substantial investment in parts inventory and cooperation with the sales dep't to preload lot vehicles and somehow incentivize retail up-sells.

There is an app on GlobalConnect under the Business tab where it can be monitored, and looks almost identical to the PASE setup, with similar participation and potential percentage payouts for hitting various minimum objectives as well as sold vehicle numbers. The app has tabs for program guidelines, resources etc. and you should get access from your PSC to at least be familiar with the program.

You most DEFINITELY meet with your DP about exactly what his expectations are on potential losses of incentives from previous programs vs. the new EBE requirements. It's just like the PASE program can cost or make you money, where as in the past it that rebate money was predictable and safe.

[greenthumb-38]

I was told it has to do with sales dept's monthy objective and retail units delivered. then there is a value of accessories placed on each "delivered retail unit", and this becomes your ADI objective, I think...

gt is not really sure

[PartsPlant81]

I was at a meeting a few months ago and a rep from GM was speaking he said that GM's parts as a whole were down approximately $50M last year.

Their solution...Create a new service program (PASE) where service will help sell more parts than ever & have sales sell more accessories than ever before! SMH

[Zep33]

They're gonna save more than 50M by not having to pay out the bonuses

[CHUCKINPARTS]

I was at a meeting a few months ago and a rep from GM was speaking he said that GM's parts as a whole were down approximately $50M last year.

Their solution...Create a new service program (PASE) where service will help sell more parts than ever & have sales sell more accessories than ever before! SMH

I know why sales were down.. THEY DONT HAVE ANY PARTS TO SELL US. EVERYTHING IS ON BACKORDER!!!!

[possum]

Ok more info:

The accessories purchase objective is part of the EBE "bonus" monies which are based on the "Brand Standards" conformance. Brand Standards includes requirements for facility, training, My Rewards participation, courtesy transportation, digital marketing, etc. That's the big money quarterly payout for Sales, and you have to hit ALL of those standards to get that money.

The EBE bonus is based on hitting additional requirements: OnStar @ 2.5%, CSI @5%, Fix the Phones @ 5% and hitting Accessories objective @ 7.5%. Total 20% bonus on top of your Brand Standards money.

So if your Brand Standards payout is based on vehicle objectives for the month, your Accessory number is too. If your forecast BS payout is $100,000, Accessories would mean $7,500 of a possible $20k quarterly bonus.

[bigmac]

I was at a meeting a few months ago and a rep from GM was speaking he said that GM's parts as a whole were down approximately $50M last year.

Their solution...Create a new service program (PASE) where service will help sell more parts than ever & have sales sell more accessories than ever before! SMH

That's probably because no lock cylinder recalls last year