Parts Warranty markup
Posted:
Tue Jun 09, 2015 11:54 amby lstacy65
I'm new to GM parts and this DMS ( dealertrack ) but I seem to be low on gross profit margin for warranty parts. Should be in the 27.5 % range but I'm always hovering at about 24-25. Anybody else have the same issue ?
Re: Parts Warranty markup
Posted:
Tue Jun 09, 2015 2:05 pmby RBrown
Actually, in a perfect world, with 40% markup, you should be running 28.6 g.p. BUT, with the 24/24 maint plan and other flat paying programs, your gross is going to suffer.
Re: Parts Warranty markup
Posted:
Tue Jun 09, 2015 3:17 pmby Zep33
Yup, it's probably all those oil changes that GM only pays a flate fee on. I have to bill them out here at 10% over cost. That does cause some fluctuations in GP month to month
I know some dealers bill them out at full warranty and charge the rest to sales or advertising.