DealersEdge Professional Forums

I'm at a gm dealer with a body shop which we do a 50% split on gross profit, have a new manager trying to talk gm into ordering parts them self and take
all the gross to body shop. anyone doing this on the dealer side gm or not?

I've got a bad feeling about this...

- gt

One week of them ordering parts from GM with the SPAC cases,backorders, all around confusion and they will say " ENOUGH OF THIS SHIT".... Wait till they try and return something. You know what ..........now that I think about it, this could be fun.

this is what happens when business slows down, department against department and why why does parts get half our profit?? I'm in parts
so that what i'm facing now, The bs manager come from independent shop and spreading the way to make more profit for them. Terrible
idea to me but gm said some other dealers are doing it, i havent hear of any.

That's why I like being paid on the gross profit.

any GM or DP that has any smarts would realize that this would cost the dealership more money in the long run . for some reason the parts departments seem to be the whipping boy for all the dumb ideas from coming from other departments . i started with GM in 1970, lasted until 1988. you would't believe dumb stuff that happened then. looks like there are still idiots out there.

If the bs manager is bad about ordering parts then giving them back to you, you may be better off letting someone else deal with the headache.

And how would they do that without jeopardizing the dealerships PASE money?

We receive estimates from our BS and handle them the same as any wholesale account, except we bill out the parts onto their ROs before they leave the department. If they need to change pricing for insurance-sake, they can do so, but they're not allowed to add or remove any OE parts from their ROs. As far as returns and restocking fees, they're treated just like any wholesale account and are held responsible for their actions; restocking fees are applied to the RO and either paid for by the insurance company, customer or their internal policy account. There are lines for BS sales & gross in the DOC report under the parts section which goes into the total parts gross figure for the month. They just have to add those parts lines to their labor figures to get their total departmental sales and gross.