PARTS TRANSFER

[carwars]

This one for Mr.Muntz.Are there a lot of dealers out there no longer using parts gross transfer to service and if so why?

[jimmuntz]

I've been around for more than a few years, but I still perfer Jim to Mr. But as you are comfortable.

On you question- I don't think I am the best qualified to answer. We have some pretty well-traveled consultants, accountants, 20-Group Moderators, etc. that frequent this board and I would invite them to respond.

Jim Muntz
DealersEdge

[homesleym]

...and if they still use transfer at what percentage??

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[KevvyG]

Ford here...still have Shop Transfer. 50% of retail gross. As for why here? "That's the way it's always been done!" I don't care though...I get paid BEFORE it

[sermgreby]

We use it. 50% cust pay GP. Doesn,t really matter as we all work as a team and pay plans account for it. GM store.

[djd93]

Our assistant Parts Manager is always complaining about the trasfer saying "service is taking his profits". From were I set I am looking at our service drive. No signs of a parts person selling a part there. When I have asked him about this he says they have to look them up and get them for service.
Awhile back I went to the parts counter to see if we had a part and overheard a counter person talking to a wholesale customer. Can see he is looking up parts for him. It went something like this "I will pull all these parts for you and have them delievered this afternoon. Since you are such a good customer I am going to take another 10% to thank you for your loyalty." This puts what that customer paid well bellow what they would have made selling to service and giving the transfer. I most all cases without a discount they still make more selling to service with or matrix system than to wholesale. So being the smart*** I am I asked "did you put a charge on for delievery and for looking up the part?" I was told no because they are a good customer. Last month they bought 2.5% as much as service sold customer pay. Then they looked up my part and found we did not have it their count was off. Gave me a P.O. and told me I would have to find someone to pick it up since the driver was going to be busy. He also told me to make sure he gets the reciept back so he can mark up the price more because the part will cost more.

[ZOOM1]

I am a parts mgr, and it seems to me that your " assistant" parts mgr needs to look at who his "good" customer is. In my store, the service dept is our #1 customer and is treated as such. If necessary, a wholesale acct gets put "on hold" if a part is needed to be picked up for our service dept. His service dept may be a "captive" customer, but still his best customer.Also, there is too much concern over the transfer. If the transfer went away, I am sure pay plans would be adjusted accordingly, so it is relatively meaningless

[cantfind12]

I agree Zoom1. Too bad Occums Razor is an overlooked concept in our current world climate macro and micro. I realize there are factors that seem overly complicated but usually fundamentals are overridden by the need to over analyze. In agreement simply put...."who is your best customer"? That can be determined by many factors and perceptions. For the retail/wholesale folks it is the people they sell to. For your service folks it is your shop. As a former factory guy I was trained to explain becaue of warranty the factory is your best customer. As cars become less "needy" for mechanical maintenance and repair some argue body shops are your best customer. After all the automobile can be made not to break as much but people still crash into each Then there are vehicle sales factors but lets leave that for another day.