Option C

[Alan Nicholson]

How many of our GM dealers are opting out of option C back to Option A this time around. Lots of new expenses this year with the distant learning and who knows what else.



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Alan1149@aol.com

[Michael White]

When option C became available, GM did a real number to their dealers by changing the way you can calculate labor rate. To figure out your "effective" labor rate, before option C you did not hae to count your discounts, specials, and LOF maintenance type items. Now you do. This wacks the poop out of your effective labor rate. This assures the dealers particpation in option C. In the past, option A has not been effective for us, but deserves a peek. I would bet a small amount of money it would not pan out if you have normal circumstances in your store.Lets see what others think about it. I do not know anyone who has refigured it locally.I just finished a labor rate survey for our area. The Ford, Chrysler and even Honda stores are significantly higher than all of the GM stores $5 to $7 per hour more for warranty). Most of the GM stores I talked to. 5 in all, tell me they are planning to increase their customer labor rate from $85 per hour in our area (this is average) to the $90-$95 per hour. There is one store that is basing their labor rate on $100 per hour and charging by the job and not the hour. But the calculations are based on $100 per hour. In the San francisco Bay Area, these amounts for dealers are on the low side.
Mike

[Alan Nicholson]

Mike, with retail rates of $85.00 to $100.00, what are the warranty rates in your area. In our area, the retail rates are $62.00-75.00 with warranty rates of 54.00 to 63.00

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Alan1149@aol.com

[Michael White]

Alan,
Warranty rates in the San Francisco Bay area range from a low of $82 to almost $100 in San Francisco. Gm is also the lowest domestic car line in our area. Ford and Chrysler products are higher. The Honda store down the street is $89 for warranty. Journeyman techs are traditionally union, an a journeyman gets around $23 plus a hour.
Mike