GMPP PARTS PRICING

[mbowers]

Two observations:

1. Don't forget to collect the sales tax from GMPP

2. A parts manager called to say there is a way to override the R & R system so that the labor rate is automatically corrected and the parts price defaults to true list. He is supposed to send me details on how to do this.

[cwalden]

CHUCK,I ALREADY HAVE MY PARTS SOURCED BY NUMBER OF SALES.I CHECKED WITH OUR WARRANTY
CLERK AND SHE SAID THAT SHE SUBMITS GMPP CLAIMS A DIFFERENT WAY THAN SHE SUBMITS REGULAR WARRANTIES VIA DCS.SHE CANT TELL ME
ABUOT THE PARTS PRICES BUT SHE KNOWS WHEN A
CLAIM IS FOR GMPP OR NOT.SO NOW I HAVE HER
CHECK WITH ME BEFORE SHE SUBMITS ONE.


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[MARY SHERICK]

MY INTENT IN ASKING THIS QUESTION WAS TO GET EVERYONE TO TAKE A LOOK AT HOW THEY WERE DOING THIS. IT IS THE LITTLE BIT OF MONEY LOST EVERY DAY THAT ADDS UP TO THE BIG DROP IN GROSS PROFIT AT THE END OF THE MONTH. IF IT IS CAUGHT, NO MATTER BY WHICH METHOD, IT IS MONEY EARNED AND KEPT.

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[Chuck Hartle]

MWalden,
Based on what you are saying I am assuming that you are using ABC Sourcing via the ERA system based on sales. That is fine for all your parts that have a list price.
As I mentioned in the earlier reply and to clarify my statement... Build two new sources and "SHUT DOWN" the factory update and ABC Sourcing Field for these sources that you will put parts without a list and engines and transmissions into. Otherwise, everytime you run a new pricing and mfg information update tape the parts that you sourced will go back into the sources based on the criteria you set up.
Based on what you said, your warranty clerk knows when it is a GMPP ticket. This is because your service department is using a labor type that clearly identifies this type of sale. By building the two extra sources for these "special" parts that have a completely different price mark up you can now change your price code in these two sources to price correctly and eliminate the lost profit that my occur.
You can call me at (619) 462-2120 if you have any questions about this.
Chuck Hartle