Retail price Matrixing

[partsdude23]

Was wondering what your retail price matrixing are set up at?

My SM is complaining about some pricing to me. But when I price shop myself with the local dealers I am actually lower.

Besides my prices i think he is looking to lower my parts to increase his labor rate. It doesn't take 3 hours for brakes.

Jim

[johnnyo]

Use the search function on this site you will find numerous posts about matrix pricing.

hope this helps.


John

[DaleH]

What brand dealership? GM accounting splits the gross profit between parts and service, so that puts $ into the service department.. maybe he is unaware of that.

I suggest to do a survey of like businesses - other delers, and also include major aftermkt - use this to determine competitive parts AND LABOR - however always remember that people are willing to pay more at a dealership as long as you explain the value they get - ie factory trained, factory parts warranted across the US etc.

Ask the sm to discuss it with you and see what he comes up with.

I'm a service manager - and always believe parts and service should work close together... at some dealerships like the present one - it's great - at others people were very "protective of turf".

[This message has been edited by DaleH (edited 05-13-2003).]