DealersEdge Professional Forums

We do all used car reconditioning in house...about 120-140 cars per month. We have been charging "retail" labor for years. I am planning to charge "retail" on parts, too, beginning next month.

I see no reason to leave this money sitting on the table and, since they essentially sell from cost up, sales department doesn't really seem to have a problem with it.

Thoughts ?

We charge full labor internally and cost
plus 40% for used cars and factory suggested retail for accessories on new cars. Since we
started a couple years ago the gross per unit
on used cars has increased!! Plus we build some internal profit in each vehicle.

Joe R

Hi Doug,

As long as there will be no hidden animosity by the sales department, then I say go for it. It sounds like the sales department is in tune with the fixed ops, and visa versa. At the very least you can always go back to where you were.

Gary J. Naples
GNA

We have been charging the used cars retail for years. Our parts department charges the used cars normal customer pay pricing and they are on a matrix pricing guide. Since sales usually works on a pre-determined markup price or gorss rpofit objective, as long as it is reasonable, they will still sell the car and make more gross profit % than before. But you have to be good to the used car department and give them high priority, and give them a bone or 2 when they need help on on. Plus you have to take responsibility for your work.
Mike