GM employees and discounts

[mike keller]

Im in a area with a lot of GM emps.
there seems to be a misunderstanding
with them. As i was under the impression
that it is up to the dealer to offer
a discount or not. my dealer stoped
the discount after many emps went
to the owner woundering where there
disc. was when there cars are in the
service dept. he put a stop to the
whole program.Also they think i
should give part numbers over the phone.
what do you do.

[MARY SHERICK]

AT OUR STORE, THE GM EMPLOYEES PAY RETAIL, JUST LIKE EVERYONE ELSE. IF THEY ARE OVER 60, THEY DO GET A 10 PERCENT SENIOR DISCOUNT, WHICH IN OHIO IS CALLED GOLDEN BUCKEYE. HOWEVER, OUR EMPLOYEES PAY 10 PERCENT OVER COST FOR PARTS AND HAVE A DISCOUNT OF THE LABOR RATE OF ABOUT 30%. THIS IS ONLY FOR CARS IN THEIR HOUSEHOLD.

[robc]

Having grown up in Michigan, and worked in dealerships literally down the block from factories I can tell you my rules:

1) Factory employees never got a discount of any kind ... PERIOD! Just like they never got any "goodwill" consideration or any extra effort on my part. They built it, they have to drive it, they are captive customers. Not that I was rude to them, but they simply weren't entitled to any extra consideration over other customers just because they have a factory paycheck.

2) Dealership employees normally got at least internal rates for parts and labor. I am in big favor of giving cost plus 10% as Mary said for parts.

------------------
** Rob, Editor WD&S **
Help is only a message post away!
robc@dealersedge.com

[MARY SHERICK]

ROB I AGREE. THE "GOODWILL" POLICY IS VERY HARD FOR US TO ENFORCE, ESPECIALLY WHEN THE CUSTOMER ASSISTANCE CENTER OVERRIDES THE DEALER WHEN THE GM EMPLOYEES SCREAM LOUD ENOUGH. THEN IT IS A HASSLE FOR EVERYONE. I THINK THE ONES WHO WANT THE PEP CARS RECONDITIONED ARE THE WORST!!!! OUR PRICING FOR EMPLOYEES IS REGARDED AS A BENEFIT. IT IS NOT GOOD BUSINESS TO HAVE YOUR EMPLOYEES SHOPPING AROUND FOR SERVICE, AND LET'S FACE IT, NOT ALL JOBS IN A DEALERSHIP PAY EXTREMELY WELL, SO IT MAKES IT EASIER FOR YOUR EMPLOYEES TO DRIVE WHAT YOU SELL.

[jrcal]

I agree, our employees and their families enjoy a cost plus 10% charge for their automobile repairs. I also agree that GM employees should be treated like any other customer. I would like to ask one question. We (dealership employees) enjoy the GM employee discount incentives just like GM employees. Should we consider giving some discount to them?

------------------
JC

[MARY SHERICK]

DEALERSHIP EMPLOYEES DO NOT HAVE THE SAME PURCHASE PRICE FOR NEW VEHICLES. ONLY WHEN NATIONWIDE INVENTORY WAS HIGH DID GM EXTEND THE GM OUT OF STOCK PRICE TO DEALER EMPLOYEES. IF YOU WANT VERIFICATION, SEE THE PERSON WHO TRACKS THE FACTORY INCENTIVE PROGRAMS. SO, WHY GIVE DISCOUNTS YOU DO NOT HAVE TO, TO CUSTOMERS WHO WILL LIKELY NOT BE EXTREMELY LOYAL TO YOUR STORE,IF ANOTHER GM LINE COMES OUT WITH SOMETHING MORE INTERESTING, OR A BETTER OPTION 1 LEASE DEAL??

[MARY SHERICK]

DEALERSHIP EMPLOYEES DO NOT HAVE THE SAME PURCHASE PRICE FOR NEW VEHICLES. ONLY WHEN NATIONWIDE INVENTORY WAS HIGH DID GM EXTEND THE GM OUT OF STOCK PRICE TO DEALER EMPLOYEES. IF YOU WANT VERIFICATION, SEE THE PERSON WHO TRACKS THE FACTORY INCENTIVE PROGRAMS. SO, WHY GIVE DISCOUNTS YOU DO NOT HAVE TO, TO CUSTOMERS WHO WILL LIKELY NOT BE EXTREMELY LOYAL TO YOUR STORE,IF ANOTHER GM LINE COMES OUT WITH SOMETHING MORE INTERESTING, OR A BETTER OPTION 1 LEASE DEAL??

[jrcal]

Mary, have you read the newest GM Dealership Employee Purchase Program released by Roy Roberts? Simplified, this program offers a discount to GM Dealership Employees. As you stated, the discount is only on certain models and expires March 31, 1999. But it is still a discount offered to us, the GM Dealership Employee. All I am saying is I believe some sort of limited discount may be proper to GM employees. I am certainly not saying we should offer anything near what we offer to our own Dealership employees. For expamle, a business in our town that offers our employees a discount for whatever they sell will make me think of offering some kind of a discount back to their employees for our services. This is just another friendly way of doing business with businesses that do business with us! ( just a thought )