Taking discount upfront or no

Re: Taking discount upfront or no

Postby mdishong » Fri Jun 26, 2020 6:09 pm

olepartsguy wrote:HERE IS WHAT HAPPENS IF YOU ARE A GM DEALER. IF YOU PUT YOUR PARTS BELOW DEALER COST ON A REPAIR ORDER , THEN THE PART DOES NOT COUNT AS A GM PARTS SALE. IT BECOMES A "UNRECOGNIIZED PART". YOU CAN GO ABOVE DEALER COST, BUT YOU CANT GO BELOW COST.

TO CLARIFY 687 IS FOR GM WAREHOUSE PURCHASES AND 688 IS FOR "OTHER PURCHASES" WD, INTERNET PURCHASES, ETC



DING DING DING - THIS IS REASON #1 NOT TO CHANGE COST & KEEP IT IN 687
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Re: Taking discount upfront or no

Postby olepartsguy » Fri Jun 26, 2020 6:38 pm

B964.

DO YOU HAVE A NEW DMS. WE ALMOST MADE A MISTAKE AND PURCHASED A NEW DMS THAT DID NOT SUPPORT 687-688 ACCOUNTING.
I AM GLAD WE DID NOT MAKE THAT MISTAKE.

I DO ALL THE WORK AND BUY PARTS CHEAPER, WHY WOULD I SHARE THE PROFIT(GROSS PARTS TRANFER) WITH THE OTHER DEPARTMENTS.
ALSO MY PARTS SALESMEN MAKE ENOUGH MONEY
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Re: Taking discount upfront or no

Postby B964 » Fri Jun 26, 2020 8:49 pm

Not GM dealer and on CDK.
My point is that if we used the best net cost we would either be able to sell for less and be more competitive or sell same price and show higher gross on sale.
Taking discount upfront or best net cost and sell same price still puts the profit in the dealers account.
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Re: Taking discount upfront or no

Postby TimK » Mon Jun 29, 2020 2:10 pm

B964 wrote:Not GM dealer and on CDK.
My point is that if we used the best net cost we would either be able to sell for less and be more competitive or sell same price and show higher gross on sale.
Taking discount upfront or best net cost and sell same price still puts the profit in the dealers account.


Do you get paid on 687?
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Re: Taking discount upfront or no

Postby B964 » Tue Jun 30, 2020 1:04 pm

TimK wrote:
B964 wrote:Not GM dealer and on CDK.
My point is that if we used the best net cost we would either be able to sell for less and be more competitive or sell same price and show higher gross on sale.
Taking discount upfront or best net cost and sell same price still puts the profit in the dealers account.


Do you get paid on 687?


No.
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Re: Taking discount upfront or no

Postby TimK » Tue Jun 30, 2020 6:29 pm

B964 wrote:
TimK wrote:
B964 wrote:Not GM dealer and on CDK.
My point is that if we used the best net cost we would either be able to sell for less and be more competitive or sell same price and show higher gross on sale.
Taking discount upfront or best net cost and sell same price still puts the profit in the dealers account.


Do you get paid on 687?


No.


oof
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Re: Taking discount upfront or no

Postby TimK » Wed Jul 01, 2020 1:49 pm

BURTPPM wrote:i may be wrong but we take profits up front and put it to 688 parts profit , when ever we can , except the PASE credit it goes to 687
every month because we were told that by GM , and our overseers agreed , but isn't any thing that is put in 687 comes
under the split with service or am i wrong ?


The Duckman

Discount money goes to parts only.
The service split is on the gross profit from the sale.
If you lower the cost to show the discount then service would get half of that discount.
Which is why you don't lower the cost.
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Re: Taking discount upfront or no

Postby parts4life » Wed Jul 08, 2020 2:53 pm

As mentioned above, always take the discount in 687 for purchase discounts.
Otherwise, you will be giving away profit via the gross profit transfer on CP repair order sales and you also be constantly changing the costs in your system for the involved parts.
Both scenarios are no bueno....
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