GMPP PARTS PRICING

[MARY SHERICK]

HAVE YOU ALL CHECKED TO MAKE SURE YOUR GMPP PARTS ARE BEING CORRECTLY PRICED?? WITH THE SWITCH TO WINS, I HAVE SEEN SEVERAL STORES ONLY CHARGING THE WARRANTY RATE. IF YOU ON A REYNOLDS SYSTEM, YOU WILL HAVE TO MANUALLY CHANGE YOUR PRICE LEVEL CODE ON GMPP LINES. IF YOU DO NOT, YOU WILL ONLY BE PAID THE WARRANTY MARKUP BY MODEL YEAR. THIS IS A 26 PERCENT LOSS OF GROSS PROFIT ON EACH PART. YOU MIGHT WANT TO CHECK INTO THIS. JUST A THOUGHT.

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[Richard]

One of the things I like about EDS, is I set my matrix, and receive the same profit margins, no matter what the factory does with costs. This gives my consistant profit margins, and once set, and fine tuned, doesn't need much fooling around with.

[MARY SHERICK]

THE MATRIX DOES WORK FOR CUSTOMER PAY PARTS SALES. WHAT I WAS REFERRING TO WAS THE PRICE GMPP PAYS YOU. IF YOUR SYSTEM IS IDENTIFYING THE PART AS A REGULAR WARRANTY. YOU LOSE THE DIFFERENCE BETWEEN WARRANTY AND GM DEALER LIST, WHICH IS WHAT GMPP IS TO PAY. THEY WILL GLADLY PAY WARRANTY PRICE FOR THE PART, WITHOUT TELLING YOU OF THE UNDERCHARGE

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[Richard]

Ahhhh, I see what you are saying. Our EDS system codes GMPP claims as WX, and charges List (67% markup) on those parts. The only problem we had were right after the price change, and GM kept rejecting claims because of the price difference, even though the claims were submitted before the price change.

[MARY SHERICK]

EDS MAY IDENTIFY SEPERATELY. WHAT I WAS REFERRING TO WAS REYNOLDS SYSTEM, WHICH ONLY IDENTIFIED BY CP, WARRANTY, OR INTERNAL. IF A DEALER USES THE WARRANTY CLAIM TYPE IN ORDER TO USE THE DOWNLOAD FOR WINS PROCESSING, THE R AND R SYSTEM DOES NOT RECOGINIZE THE DIFFERENCE IN PART MARKUP BETWEEN FACTORY WARRANTY AND GMPP.

[GreggT67]

Pricing parts for GMPP claims has been a thorny issue for a long time. There isn't just one way to price the parts and all the systems can't seem to be 100% in pricing the parts correctly.

GMPP pays -
1. GM list on any parts with a list price
2. 67% markup on parts without a list price
3. 40% markup on engines and transmissions

If anyone has found a way to setup the system to automatically price the parts this way I'd be interested in hearing it.

[Chuck Hartle]

Gregg, if your pricing is correct for GMPP parts
- GM List on any parts with a list price
- Cost plus 67% on parts with no list
- Cost plus 40% on Engines and Transmissions

Then do the following:
Create a single labor type for GMPP (Which you probably already have)

Create two sources in your parts system. You don't need one for all the parts with a GM List price.

Create the first source for parts without a list price, then create the second source for just engines and transmissions. This way you can move these parts into the proper source and use the same price code but change the price code to price differently per source.

You can create an report on english statement to pull those parts daily and/or weekly to move the parts without a list and engines and transmissions into the proper sources to keep the pricing accurate.

Chuck Hartle'

[MARY SHERICK]

THE PRICING STRUCTURE WILL WORK IF IT IS USED PROPERLY. ON SOME SYSTEMS, A SEPERATE LABOR TYPE IS NOT POSSIBLE. IN THAT SITUATION, YOU MUST HAVE YOUR WARRANTY ADMINISTRATOR DOUBLE CHECK THE PARTS MARKUP ON ALL GMPP CLAIMS, AND ANY THAT DO NOT MATCH NEED TO BE VERFIED FOR CORRECT MARKUP BEFORE THE CLAIM IS SUBMITTED.

[GreggT67]

Chuck,

Is the process you are describing for a particular system or will it work on all three of the major systems (R&R, ADP, UCS)?

[Chuck Hartle]

Hi Gregg,

It definitely works with ADP and Reynolds and Reynolds... I can't speak for UCS as I have never worked with it. The important thing to remember on the two sources
a. parts without a list price
b. engines and transmissions
make sure to shut down the factory sourcing update or every time you run a parts mfg price update tape it will move these parts back into the factory sources. It will still update your costs and all pertainent information, it just won't update the source and move it out of that special source.

Let me know if you have any other questions.

Good Luck,

Chuck Hartle'