Accessories mark-up to NCD

[STEVEH]

What is everybody marking up genuine accessories from manuf. to the new car dept. Also what make. Thanks for the help.

[toyolady]

We are a honda dealership, and our new car accessory mark up is 30 percent...but I upped to 33 so our retention will be closer to what we're looking for. I would love to make it retail but they are crying enough as it is.

[km10442]

DODGE DEALER HERE, ALL ACCESSORIES ARE SOLD TO SALES AT LIST PRICES THEN SALES PERSON IS SPIFFED FROM PARTS AND SERVICE SO THERE IS NO CONFLICT WITH SALES GROSS OR COMMISSIONS ON THE DEAL. PARTS AND SERVICE GROSS PROFITS ARE MAINTANED ALSO.

[jdaniel]

We do all internal parts, including accessories at retail unless the parts and sales department make a deal on a specific item, then it is at least cost plus 25%. It was a hard sell at first, but the owners' sons went to the NADA Academy and saw the light. We currently have VW, Volvo and Jeep/Chrysler; we did it with other franchises before dumping them- Saab, Mazda, and Mitsubishi.

[CreecherComfort]

Cost + 35. Volvo-Mitsubishi-Isuzu-Suzuki-Kia. And yes, they think we are ripping them off.

[scotstrong]

A previous string titled "Internal pricing to other departments" contains a calculation to obtain your "break-even" point (the percent every part needs to be marked up in order to break even based on your expenses). You can use this as valid justification for your position.

[pkwalsh]

I work with 'jdaniel' (post above). As he stated we charge retail to sales, unless we have made a deal on a certain accessory. Used car department always pays retail. We always hear from sales how bad they think we are ripping them off. The problem with discounting parts to sales is that the salesmen think it is their right to get the discount. They approach the parts counter after the car is sold, usually with the customer in tow, and ask for a part with "the sales department discount"!!! I think this will always be a problem, and with the turnover of salesmen we are constantly battling with sales over the same subject. We do not like to give out the "sales discount" after the fact, especially on a parts invoice, but sometimes you are put on the spot with a new customer. Also some of the newer counter people give in too easily. Is there an easy solution?????? Let me know if you come up with one....Good Luck..

[Fixedopsmgr]

WE ARE A VW DEALERSHIP. ALL INTERNAL, NEW AND USED ARE PRICED AT RETAIL. THE THEORY IS THAT IF YOU SELL TO SALES FOR LESS THEY GIVE IT AWAY. USED CARS COMPLAINS HEAVILY BUT MY OWNER IS THE ONE THAT CHANGED IT TO RETAIL. FINALLY A OWNER THAT ACTUALLY CARES ABOUT FIXED OPS.

[RBickley]

S.E. Toyota store. It was cost +20% and I changed to cost +25%. I have worked for a Nissan store that did full retail. To pkwalsh the easy solution is give the discount to them. At this point you are leaving an impression on a new customer. Think more of what you can make off the customer in the future. They will remember your handling of them and your unselfishness. You will never change the sales department.

[Mike Cummings]

If everyone is selling to New and Used Cars at retail, then what are they(NCD and UCD) charging the customer for the accessories that are in the catalogs that have the retail prices posted? Used Cars don't need Monroney labels but New Cars do. It seems the customer will play the NCD against the Parts and Service Dept. and wonder why the prices are different.