Wholesale customer discounts

[Torgy]

were smaller GM and Hyundai dealer, ($400k in inventory combined), and our owner recently signed us up on Repair Link for both franchises.(FN 20 groups!) Some of our customers have now been commenting on how other dealers are offering them better pricing on GM parts. I know this to be true as were not a high volume wholesale dealer. I fear that if we don't increase our discounts some of our customers are going to start buying from the "big boys" as they are seeing lower costs on Repair Link. So on top of the monthly fees for Repair Link, we would also be losing gross on the parts sales. Maybe the volume would increase, a little + a little could make a lot.
Any suggestions, besides you're not big enough to play in that pool so get out. Too late for that were locked in for a year. SMFH

What do you offer for wholesale discounts to repair shops?

Do all of your wholesale customers receive the same discount?

[PartsOnBackorder]

This is a hot topic across the board form a lot of dealers who are part of our club . Trying to get involved with wholesale mechanical / collision is a super competitive market and not just with your local or big boy dealers . We have have a little over 2 million in GM inventory , 5 drivers and do a reach of about 50 miles around our dealer. Over the last few years we have 2 big boy out of state dealers that we compete with ( usually not hard though as their discount to the shops is 35% but they are horrible with customer service ) and Amazon . What we experience most often is shops ordering from not only multiple dealers but also Amazon . Who ever gets there the quickest that's who they keep . You have to stay extremely diligent with these A*******S and put a stop to it right away or it will cost you thousands. We tier our discounting starting at 35% ( again to match what big boys are ) depending on their return % and among purchased we can tier them up to an absolute max of 37% . Any shop that goes over 15% returns ( not including cores ) I will setup a phone and discuss what the break down is and how we can work together to ensure what's ordered is used. With GM being so gracious with a 35% restock fee it does NOT help anyone trying to do wholesale .

[PartsDanager]

I am a GM-Kia dealer with about a 500k inventory and about 2 years ago I dropped out of collisionlink. We had it when I started, but man was it not worth it. Alongside the cost of the product (which will only increase and is annoying to cancel) you're right, it drives down prices. The GM market already tends to be oversaturated, wholesale requires a lot of legwork, and we couldn't compete with 'real' wholesale dealers because the investment into inventory and space for that inventory was just too high of a risk. My wholesale operation is more profitable without collisionlink. I notice a nice drop off in return percentage as well, all though I'm not sure if it's related.

Repairlink was even worse off, turned the market here for mechanical repair shops into a market as bad as the collision market.

I'd explain to your owner that you'll need to move on from at least GMs collisionlink (even if it drives volume that restock fee is straight from hell) and that cancelling requires a specific form with a months notice or they lock you in for another year.

Any vendor that needs a year long commitment (especially an auto renewing one) can find someone else to screw.