Why is it that I am selling a part to a body shop for an unheard of 14% gross. If the part has any inperfection they want to know what I'll do to help them out. Wasn't the 30% discount enough? (And why does everything take three hours to repair?)
We are fifth in our district, our numbers started to slide, we reluctantly went to 30 off. Second decided to jump from 25 to 35. And Wayne's boys not being happy with first, decided to do cost plus 10. I have been assured that they can't keep this up. But, unfortunately our store will be a casualty long before they give up.
Fiftyfive percent of our sales comes from wholesale. If we cut it loose, we are then overstaffed by two. And for the selfish part, if it happens on my watch, I think I know who would be set free first.
wholesale matrix parts pricing
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wholesale matrix parts pricing
by WINJINGIT » Mon Jun 09, 2003 4:34 pm
WHAT A BUNCH OF CRYBABIES!
BUSINESS IS BUSINESS. IF COMPETITION IS FIERCE, THE STRONGEST OR BIGGEST OR SMARTEST SURVIVE.
THE WORLD IS WHAT IT IS AND WONT CHANGE BY WISHING. PROGRESS HAPPENS BY SOMEBODY HAVING A BETTER IDEA AND OTHERS COPYING OR IMPROVING ON IT.
GET IN OR GET OUT, BUT DONT WHINE ABOUT IT!
BUSINESS IS BUSINESS. IF COMPETITION IS FIERCE, THE STRONGEST OR BIGGEST OR SMARTEST SURVIVE.
THE WORLD IS WHAT IT IS AND WONT CHANGE BY WISHING. PROGRESS HAPPENS BY SOMEBODY HAVING A BETTER IDEA AND OTHERS COPYING OR IMPROVING ON IT.
GET IN OR GET OUT, BUT DONT WHINE ABOUT IT!
- WINJINGIT
wholesale matrix parts pricing
by joe r » Mon Jun 09, 2003 6:08 pm
WINJINGIT: And you wholesale policy is???
- joe r
wholesale matrix parts pricing
by PucHed » Wed Jul 23, 2003 5:40 pm
Sorry in advance if this is a little long winded, I just had this conversation with one of my mechanical wholesale accounts.
We matrix all of our mechanical wholesale, with a few individual exceptions, not exceptions for a certain account, but on certain orders. If a shop calls me to quote a job, and I give them list price on a job, say $100 less 25%, they pay $75 and make $25. If I give them a matrix list of, say, $150, less the same 25%, they make $38.50. In addition, if the same customer calls my shop for a price, they will get the same $150 parts quote. Our labor rate will be higher, but not usually so much that the reputation, training and service they get dosen't make up for it. The only way that the shops can price us out of the equation, is if they don't use OEM parts, and we can instantly discount that argument, as even with list prices, we can't compete with aftermarket parts. One thing you will notice is that you don't get the "the dealer tried to bend me over" because our prices are right in line with the installers'. In addition, if you are up front with the installer, your reputation goes up with them. If they have either an insurance or extended warranty job in their shop, you manually adjust the prices to list less their discount. It is rare enough, and again, gives you a better relationship with the shop.
Obviously this dosen't work in every market or situation, but since I went in this direction, my wholesale sales AND percentages went up. At the same time, my service dept's turn down rate dropped. Again, this would not have worked without some cooperation from the other stores in my market (and that took some doing), but now we all are enjoying higher grosses, and hopefully higher paychecks.
Just a thought from my probably unique situation.
We matrix all of our mechanical wholesale, with a few individual exceptions, not exceptions for a certain account, but on certain orders. If a shop calls me to quote a job, and I give them list price on a job, say $100 less 25%, they pay $75 and make $25. If I give them a matrix list of, say, $150, less the same 25%, they make $38.50. In addition, if the same customer calls my shop for a price, they will get the same $150 parts quote. Our labor rate will be higher, but not usually so much that the reputation, training and service they get dosen't make up for it. The only way that the shops can price us out of the equation, is if they don't use OEM parts, and we can instantly discount that argument, as even with list prices, we can't compete with aftermarket parts. One thing you will notice is that you don't get the "the dealer tried to bend me over" because our prices are right in line with the installers'. In addition, if you are up front with the installer, your reputation goes up with them. If they have either an insurance or extended warranty job in their shop, you manually adjust the prices to list less their discount. It is rare enough, and again, gives you a better relationship with the shop.
Obviously this dosen't work in every market or situation, but since I went in this direction, my wholesale sales AND percentages went up. At the same time, my service dept's turn down rate dropped. Again, this would not have worked without some cooperation from the other stores in my market (and that took some doing), but now we all are enjoying higher grosses, and hopefully higher paychecks.
Just a thought from my probably unique situation.
- PucHed
14 posts
• Page 2 of 2 • 1, 2
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