DealersEdge Professional Forums

I HAVE A GM. PARTS CUSTOMER :
LAST 12 MONTHS:
$205,000 PURCHASED
$32,000 GROSS PROFIT
$22,000 IN RETURNS
%17.5 GP%
%11 RETURN RATE (CURRENT MONTH %17 RETURNS)

ALMOST NON PROFITABLE...DO YOU AGREE ?
THE RETURN RATE IS PUTTING A STRAIN ON MY SLIM RESORCES(RESERVE.FEES.SPACE.PATIENCE)

I DO NOT CHARGE A RETURN FEE...IF I DID HE WOULD NOT BUY.COMPETITION HIGH IN NE.

I GUESS MY QUESTION IS: AT WHAT POINT OF %RETURNS ARE YOU NOW COUNTER PRODUCTIVE AND ACTUALLY HURTU=ING THE HEALTH OF THE DEPARTMENT.

One of the reports I review every month tells who is returning at a double digit rate. After I determine that it wasn't due to cores, Parts Associates or a total loss I call the shop owners and discuss it. We determine what the issues is and agree to a correction and revisit it in ninety days, thirty if it's on my side. If they cannot get their returns under control actions are taken whether it is a change of discount, payment terms, handling charges, or divorce.

And before you say it can't be done, I sell several million dollars per month and my business grows year after year. The reality is that If you are not talking to all of your customers on a regular basis someone else is.

Every 3 months I look at each wholesale accounts return rate. After all the core returns are taken out, anybody that has a return rate of 10% of their sales I call and have a visit with the account. After 3 more months if their rate is still above 10% I adjust their discount. If it still continues I start charging a 25% restocking fee. Very, very rarely does it come to that. I do have some customers who are only getting 15% off list for a discount.

Newer manager here learning the ins and outs of parts, excuse my ignorance, what functions (assuming you are using cdk) are you using to check/look into wholesale return rates?

stevejm71 wrote:Every 3 months I look at each wholesale accounts return rate. After all the core returns are taken out, anybody that has a return rate of 10% of their sales I call and have a visit with the account. After 3 more months if their rate is still above 10% I adjust their discount. If it still continues I start charging a 25% restocking fee. Very, very rarely does it come to that. I do have some customers who are only getting 15% off list for a discount.

You can access via PDA - > H ( HISTORY ) - > CUST NUMBER and it will give you a quick break down of the last 12 months sales , returns , gross , ret %

Kdiperi wrote:You can access via PDA - > H ( HISTORY ) - > CUST NUMBER and it will give you a quick break down of the last 12 months sales , returns , gross , ret %

Thank you, i have been playing around some and in the enhanced report generator, it brings up a couple reports you can use. One being parts customer reports which you can select and organize with different categories, also in Enhanced report can do top 25 customers and pick the total returns, then export and really do whatever with.