Parts Transfer To Service

[OLDPARTSGUY]

In dispute with my GM as to how we compare, GM store, transfer makes up 70-80%.

What percentage of your NET is the parts transfer?

[PARTICUS]

Our transfer is 25% of customer pay parts gross profit. I was told by my Controller that this is transferred automatically on the GM financial statement. That averages out to be about 20-30% of my net in parts depending on how strong the other sales catagories are for that month.

[This message has been edited by PARTICUS (edited 04-11-2006).]

[oldsfan]

Our transfer is 50% of gross on customer pay only. The % of net VARIES ALOT depending on sales. The % of service gross is avg 11%

[This message has been edited by oldsfan (edited 04-11-2006).]

[STEVEG]

We avg around 58% tranfer to net amount and thst is with a 50% of gross on customer pay only also.

[SVCDIR1]

Our transfer is 50/50 of customer parts gross.
We are on matrix and discount only the competitive parts.

[partsdude]

Forgive my ignorance...
Im familiar with the transfer process, however, does the actual transfer differ from dealer to dealer? What I mean is, at dealer A to compute parts net you use a formula to include the transfer. At dealer B the FOps Mgr says no transfer applies here.
Something sounds very weird to me. Is it that dealer B is full of sh@@ or are they doing something different within the stipulations of their franchise that the transfer is not used?
Also,is there a "standard" formula used to calculate the transfer?
I hope that made sense.

[This message has been edited by partsdude (edited 04-25-2006).]

[helpers1]

partsdude - Whether or not there is a parts transfer on the financial statement is dictated by your franchise. I have been at dealers who structured their payplans before the transfer line, and those who pay after the transfer line.

[zekensted]

Partsdude - the transfer can be different dealer to dealer. The factories have recomendations - GM recomends 50/50 split on customer pay and service contract parts sales on repair orders. Some dealers will set up the transfer differently for there own financial statement. Many times it just depends on how the individual dealer wants the statement to look, how they respect the profit potential of each department, and even how the individual managers are paid.