DealersEdge Professional Forums

GM Dealers:

Now that getting discounts from GM has become increasingly more difficult, have any of you modified your wholesale prices to recoup some of this money?

The pricing structure for ‘Trade’ has remained pretty much the same. I had long ago made some adjustments that have been worthwhile, but would like to modify the sale price of the ‘My Price Link’ parts, which I have set up to calculate within the DMS.

Since we do not sell to a lot of body shops, the small percentage of parts that we do sell to wholesale accounts would allow for a better margin than what MPL suggests.

I’ve come up with a way to sell at List - 20%, which would pretty much allow both parties to make the same amount. List can be calculated through PBE setups within CDK. Price code setups come in to play. I’ve already test run the setups. It works.

Anyone else already (long ago?) gone a similar route.

Thanks

In metro Detroit if you are not 10 over or less you are not even playing . Tough market here. We are all whores. We make less and our customer makes more.

marko65 wrote:In metro Detroit if you are not 10 over or less you are not even playing . Tough market here. We are all whores. We make less and our customer makes more.

holy shit.

I am in NE Oklahoma. There are too many large dealerships around here that are cost+10. I gave up on wholesale. Tired of them making the profit and I get the headache.

scott2112 wrote:I am in NE Oklahoma. There are too many large dealerships around here that are cost+10. I gave up on wholesale. Tired of them making the profit and I get the headache.

That's pretty much where we're at here in northeast ohio. There's a dealer an hour away that delivers down here. They sell to me at c +15 and they deliver. I don't know how they do it.

I have one or two wholesale customers, that's it. Got rid of one about 9 months ago, caused nothing but problems. Warrantied an excessive amount of parts (diesel repair) and always complained about pricing to the point of telling me that the owner wouldn't return his calls, that the owner didn't have the balls to return his calls.


I'm perfectly fine without having to deal with wholesale.

The only way you can make money with GM wholesale parts is to become an official
GM Parts Wholesale Dealer. Then you can participate in programs such as Powertrain Truckload
discounts, CPVP Volume discounts, Facia Grille Truckload discounts, etc. See GCUS-9-6795 for
details. If your not on the Wholesale Dealer program, and selling GM parts wholesale you’re
just kidding yourself and losing money.

wct54 wrote:The only way you can make money with GM wholesale parts is to become an official
GM Parts Wholesale Dealer. Then you can participate in programs such as Powertrain Truckload
discounts, CPVP Volume discounts, Facia Grille Truckload discounts, etc. See GCUS-9-6795 for
details. If your not on the Wholesale Dealer program, and selling GM parts wholesale you’re
just kidding yourself and losing money.

This x10000000

Sadly the only dealers GM cares about are the ones that do sign the agreement. The rest of us are treated like excess baggage.

We are a smaller dealer on the outskirts of Pittsburgh. There are three wholesale stores competing against one another. Not able to compete with them for Body shop business. Have one local collision shop that remains with us. We do however have a decent number of mechanical shops that call on us for dealer only items.

I don’t believe they would receive same day service, which they expect, from the larger wholesalers. They are simply not close enough. Trade was too low, so I went with list-25 on non MPL parts years ago. In some cases it equates to trade, other items it splits earnings down the middle.

On the MPL parts, left at the MPL prices, the wholesaler gets a 60% markup if they sell at list. If we sell at List-20%, once again it’s a split.

Now we don’t sell an abundance of these (MPL) parts to wholesale, but when we do it would be more beneficial to us. I don’t believe they would question these items.

We have also been able to condition some of them on the one day out when not in stock.

In the last few years, a couple larger, outside Pittsburgh, investment groups came in and bought up the larger auto group packages, only to discover their business model would not work as well in our market. Now they have been selling off their underperforming stores back to the local larger wholesale outfits

Now these larger wholesalers have built wholesale warehouses and redirect all their wholesale business to these facilities. Their satellite stores, some of which have body shops, are now reducing their inventories to primarily mechanical parts for their in house shop.

With that trajectory, a lot of experienced parts personnel will be relegated to menial tasks, making the owners wonder why they would require employees that demand higher wages. No? I am concerned for some of my established contacts that are experiencing this trend.

The wholesale business that we have been doing may need reviewed more thoroughly before we concede ‘all’ sales to the big dogs. Some of the good reputation that we have with most of them may still pay off in other ways.



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