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extended warranty sales in service dept!
Posted:
Mon Nov 13, 2000 12:36 pmby darrenfein
We just recently started selling our own aftermarket warranties on the service drive. I am looking for some ideas as to what account (gm accounting)to credit the sale to and what account to debit the commission from.
I know it's a bad problem to have, but I don't want to share the revenue with the F&I department.
Thanks for the input
extended warranty sales in service dept!
Posted:
Mon Nov 13, 2000 5:03 pmby Hawk
The only noted accounts used for service contracts are the F&I accounts. You could use any other account if your dealer allows it. I would recommend getting together with the F&I Dept and figuring out a way to keep your own books internally, so you get credit, and lump it all in the F&I accounts. If the company is different from what the sales department sells, this will cause confusion with your customers and create more work for you in the long run. I would see if you could sell the one they are selling. Just my opinion.
extended warranty sales in service dept!
Posted:
Mon Nov 13, 2000 6:10 pmby jargonaut
In the past we usually sold the GMPP in the service drive after the sale , pinpointing all owners that didnt purchase it from us at time of sale and all transient owners. We simply made the sale and a bonus of 50 dollars was given seller and we accounted for it through sales/F&I as always done.
Are you using another contract company other than your usual one sold at dealership? Have you discussed the selling with F&I and dealer so everyone is in agreement as to revenue produced for dealer by your actions?
Are you simply targeting customers as they come in or using some sort of identifier to pinpoint customers in your service department history and database , and then using mailings etc?
All in all we sold only a few policies a month and it wasnt really hard to manage but we never took control of accounting.
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Alan The Warranty Guy
extended warranty sales in service dept!
Posted:
Wed Nov 15, 2000 5:16 pmby David Eby
We sell GMPP and CNA extended service contracts in our service dept. What we do is bill the contract as a sublet sale. The advisors spiff for selling the contract is paid out of the same account that their regular pay comes from. I dont know if this is the best way but it works for me and the service dept. gets the gross.
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