GM Summer brake promotion

[Ichabod Farquar]

How many of you signed up for this?

How many of you install brake pads without resurfacing the rotors?

Those of you that don't resurface what do you do about pulsation or noise complaints?

What do you do about the older two wheel drives that require bearing repacks?

I know a lot of questions...

[Backlash]

I singed up.
Sometimes it's ok not to resurface, if it's needed and the owner doesn't agree to it, the warranty on the pads for wear, noise, or pulsation, is not valid.

[capsgs]

I think this promotion is ridiculous. I wish they would concentrate on their end of the business and leave retail to us. They send out the notices that "GM is back in the brake business". Please, you wouldn't know the brake business if it jumped out and bit you!!! On the other hand, I guess I'll see how well a bait and switch promotion woks.

[dew23456]

It seems like GM is trying very hard to control the service departments, what prices we all charge, what parts we use on customer pay. You don't mind doing it at a $50.00 ELR, or less, do you? Why can't you make a profit at less than 25% parts mark up? The Spring Special at $39.95 for an LOF and rotation does not allow much for profit, especially using GM filters and GM supplied oil. The model is already showing that the fall special will mirror the spring special and the brake special will pop up again later in the year. How come you can charge me $40.00 today for the service and the same service next month (wouldn't that be nice) cost $60.00-$70.00? Do they (GM) think our customers are stupid?

I am venting, but you have to ask yourself how far is GM planning to go on controlling your shop?

[DEotM]

Actually, it sounds very much like price-fixing to me...... personally

[Mike]

Q.) GM is advertising that dealers are slashing prices to regain business ... did you happen to notice how much GM had slashed IT'S prices to dealers for these promoted items?

A.) $0.00 (ok, I know it was a no brainer of a question)

Point is, apparently GM thinks our prices are too high to be competetive but not theirs.

[TheOne]

DEotM
Price fixing requires the significant test that the participants in a conspiracy have within their grasp the ability to control a market. THIS IN NO WAY APPEARS TO BE PRICE FIXING. It is just like most other franchise parent companies shifting the cost of marketing discounts to the franchisee. Not very pleasant just ask your local McDonalds franchisee, but fact non the less....

[topshop1]

We heard from one large vendor that brake product sales have shifted to where a large amount of the cheapest lines/products are going to certain dealers while the higher quality products/lines are going mostly to independent shops.

I suspect that the old strategy of reducing prices to cost or below cost while hoping to make it up on volume is going to be the death of quite a few businesses of all types as we move forward.

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Tom Ham
AutomotiveManagementNetwork.com Blog: http://topshop1.wordpress.com/