DealersEdge Professional Forums

We have been hounded by the gods at GM to sell more durastop. They feel that by offering a good, better, and best options that more people are going to go for the better option. Ok, I will play. Our latest, GM special offers a 99.00 per axle durastop (the better option) brake job.

Cost of pad 43.00
tech pay per hour 30.00 (they get to flag 1)

26.00 in profit to split between service and parts..oh and the parts transfer after that!!!!

The stall efficiency would be awful. we would money ahead not to pitch brakes and just upsell wipers. Good lord GM.

They don't want you, the dealership happy, they want the customer happy so they buy their next car from GM. Rinse and repeat

GM considers these as break-even jobs and you shouldn't be paying your "A" techs to do brakes, batteries, wipers, tires, or oil changes. In retail, these are considered "loss leaders" meaning they get people in the door so you can sell them other stuff. In the car sales business it's referred to as "bait and switch".
We need to be prepared to generate a lot less gross than dealers are traditionally used to; 100% or more parts markups and $120+ door rates are a thing of the past. McDonald's doesn't make any money on the Dollar menu, and the employees don't care because they aren't paid commission.

possum wrote:GM considers these as break-even jobs and you shouldn't be paying your "A" techs to do brakes, batteries, wipers, tires, or oil changes. In retail, these are considered "loss leaders" meaning they get people in the door so you can sell them other stuff. In the car sales business it's referred to as "bait and switch".
We need to be prepared to generate a lot less gross than dealers are traditionally used to; 100% or more parts markups and $120+ door rates are a thing of the past. McDonald's doesn't make any money on the Dollar menu, and the employees don't care because they aren't paid commission.

And how many corporate schmucks do you think has seen their pay check shrink over the last 10 years?

We stock/sell the Professional Pad kits (the Better of the "good, better, best) and have had great success. We sell them for $59.95 and labor is $40 = $99.95 + sales tax of course. We have sold a lot more brake jobs and rotors as a result of the special. Sure Serice gets 1/2 of the gp, but our upsells off of brake jobs has increased our sales and profit percentages to the better.

Also what helps is that on the Professional pad kits the customer receives 1 free replacement set however .... the customer must pay the labor and GM will pay you for the pads at the warranty price. (unless this policy has changed and I haven't noticed.)

All in all, I like the program.

partsman103 wrote:We stock/sell the Professional Pad kits (the Better of the "good, better, best) and have had great success. We sell them for $59.95 and labor is $40 = $99.95 + sales tax of course. We have sold a lot more brake jobs and rotors as a result of the special. Sure Serice gets 1/2 of the gp, but our upsells off of brake jobs has increased our sales and profit percentages to the better.

Also what helps is that on the Professional pad kits the customer receives 1 free replacement set however .... the customer must pay the labor and GM will pay you for the pads at the warranty price. (unless this policy has changed and I haven't noticed.)

All in all, I like the program.

We do the same exact thing, same prices and everything. We really have no problem selling brake jobs at this price. Do you do anything special with the pricing on rotors? We stock and sell the better and only the good when really needed to. I'm 99.99% sure that the Better brakes still have that warranty.

Does anyone sell mostly GM pads and what kind of pricing structure do you use with those? Ando also does anyone do GM rotors? What does everyone do with Rotors? which ones do you stock and sell? and do you do anything special with the pricing on them?

JMShocker2010 wrote:

partsman103 wrote:We stock/sell the Professional Pad kits (the Better of the "good, better, best) and have had great success. We sell them for $59.95 and labor is $40 = $99.95 + sales tax of course. We have sold a lot more brake jobs and rotors as a result of the special. Sure Serice gets 1/2 of the gp, but our upsells off of brake jobs has increased our sales and profit percentages to the better.

Also what helps is that on the Professional pad kits the customer receives 1 free replacement set however .... the customer must pay the labor and GM will pay you for the pads at the warranty price. (unless this policy has changed and I haven't noticed.)

All in all, I like the program.

We do the same exact thing, same prices and everything. We really have no problem selling brake jobs at this price. Do you do anything special with the pricing on rotors? We stock and sell the better and only the good when really needed to. I'm 99.99% sure that the Better brakes still have that warranty.

Does anyone sell mostly GM pads and what kind of pricing structure do you use with those? Ando also does anyone do GM rotors? What does everyone do with Rotors? which ones do you stock and sell? and do you do anything special with the pricing on them?

We stock the low end rotors only because they are more price competitive with the aftermarket rotors.