GMSPO's December Incentives, What do you think ??

[greenthumb]

GMSPO has announced their incentive plan to reward/penalize dealers in the months of December based on the date of the order.

What are your opinions of this plan ??

[This message has been edited by greenthumb (edited 11-26-2001).]

[Chuck Hartle]

Greenthumb,

Give me more details on the plan????

Chuck Hartle'

[MMiller]

Lets see, on December 1 GM is going to increase prices 5% on 165,000 parts numbers than if you order them during the first week of December I'll get a 3% additional stock order discount. Sounds like the General is the only winner with this version of new math. How many of you have received your December price tapes?

[partsguy]

Actually, the deal is 3% additional off the first week of December, 2% the second, 1% the third, and NO discounts or SRA?? at all the 4th week. It was explained to us by our DPM that "this was to incentivize us to take the load off the depots the holiday week, since they run a skeleton crew". Another example of GM saying they want CSI, and creating policy that hurts it. An interesting sideline... my AC Delco rep told me that they were told they WOULD NOT have the price increase December 1, so we will have even more reason to buy from them???

Bruce

[ThePartsGuy]

Partsguy - your GM rep apparently forgot to mention that GSMP (AcDelco) is not getting the price increase that the rest of the parts are getting on December 1st. That means that if you buy AcDelco from SPO that first week, you'll get an additional 3% that you wouldn't normally - which might be a better deal than your AcDelco rep can offer.

[partsguy]

You're right- I just saw the bulletin, and GSMP is not going up... But the main point of my reply was that GM is going to penalize us for taking care of customers the last week of the month. What are we supposed to do- tell them "sorry, it will take 1+ weeks to order parts for your car during the holidays"?

Also, if GM wants us to sell their already overpriced accessories, they need to give us price protection for the entire model year. It is very frustrating to create a price list for the NCD, and then GM raises the price. They published prices in the Avalanche accessory brochure, and raised the prices before 1 month on the market! DUH...

partsguy

[Richard]

Read Closer guys and gals....the opening line of the message states that PSP parts are EXCLUDED from this deal....PSP = AC/Delco...correct?

[ThePartsGuy]

Richard - PSP is Parts System Plus. Qualifying for CFI for 4 straight months, or 10 out of 12, enables you to order parts with either all discount or all reserve, instead of the standard 6% Return Reserve and 3.75% discount. You're thinking of GSMP - Goodwrench Service Merchandising Parts, which are actually branded ACDelco. The price on these parts, GSMP (AcDelco) is not going up on the first.

[vaxley]

The December purchase incentive is for the benefit of GM - not the dealers. We are supposed to know 3 weeks and 2 weeks before Christmas what we are to sell. If we don't guess correctly, we're penalized for being their customer -we are their only customer - they forget this aspect in all they do. Since the Christmas week purchases will not have any discounts, don't they think that we as businesses and profit centers will buy from people who will incentivise us to buy from them such as our local WD's? Most of the people in the GM world need to work in the dealership for a month and see what the real business world is like - how we have to scrap together daily to make the customers happy. They have a captive market for buying sheet metal, trim items, etc. so even if we don't like their policies, we can't go elsewhere to buy our parts. So, make the best business decision during this time that will benefit your dealership financially and to keep your customers happy and satisfied. If big brother doesn't keep the dealership profitable, you need to make decisions based on your financial rewards for your owner and dealership

[This message has been edited by vaxley (edited 11-29-2001).]

[This message has been edited by vaxley (edited 11-29-2001).]

[Tschube]

I think the discount structure for December is a win win for GMSPO and the Dealer.They gave us plenty of notice to adjust inventory to maximize discount profits.I started in the 2nd week of November cutting my days supply back to about 14 days by the end of the month. On the 1st day of December I started to raise my days by supply by 5 days a day. By the end of the week I had reached about a 45 day supply. I have just recieved my Invoices from the 1st week of December and it has paid of big time. I will maintain my 45 day supply till the end of the month and will lower it on the 1st of the year.As for the last week of the month we will place only CSO orders and will not place any DRO orders.This program will also help GMSPO to replentish their inventory in the latter part of the month to get ready for the 1st of the year when they are usualy bombed. We are a large wholesale dealer and are fortunate to have the space and capital to do this. The only problem we had was the local PDC trying to keep up with the 1000 line Stock orders.

[This message has been edited by Tschube (edited 12-12-2001).]