How do you bill yourself for policy work ?

How do you bill yourself for policy work ?

Postby Hank D » Wed Mar 08, 2000 11:56 pm

How you pay your service writers is a major consideration. Hours sold, labor dollars, gross profit? Do the math. Gross profit less policy works, but don't make your advisors afraid to take care of the customer. The bean counters will tell you to take it full boat retail, cost looks better on paper. Most industry benchmarks are assumed to be at retail. In the long run, it's whatever works for you and your dealer.
Hank D
 

How do you bill yourself for policy work ?

Postby John Gilbert » Thu Mar 09, 2000 3:00 pm

Bill policy at cost. If you have policy controlled it will not affect gross profit percentage enough to make any significant difference, based on total gross profit generated. Why show a gross profit on policy? That's like taking money out of your left pocket and putting it your right.
John Gilbert
 

How do you bill yourself for policy work ?

Postby Misky » Fri Mar 10, 2000 8:09 pm

OK,50 lashes with a wet noodle for the blah attitude. I have always felt that policy work should be costed out. It seems to lessen the "hit" on your 67D. Of course if you keep it under control it shouldn't be a big deal. Either way is correct. We are not allowed to cost out our policy work, the office manager doesn't like that.
Misky
 

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