Parts return allowances

[fburrows]

Over the years AC Delco vendors have offered a return allowance on purchases. For instance for every dollar you spend with a particular jobber your parts department can return 5% in obsolete parts. The parts can be anything the manufacturer handles and there are no restrictions on packaging or non-returnable. The obvious reason that these plans are popular is that the parts manager has a place to dump the normal non-returnable parts that are bound to accumulate. I understand that you might prefer a deeper discount instead of the return allowance and that might be a better business decision. My question is how popular do you think these plans are? Do vendors in your area offer them?

------------------
Frank Burrows
Automotive Business Solutions
frank@autobusiness.org

[Richard]

Yes, I have one AC-Delco jobber that is my preferred outside purchase point, because of this program. Last year I 'dumped' over $2500 worth of stuff the GM wouldn't take back, due to PNC's, old #'s that didn't get caught and returned many years ago, and accessories. We do business with 3 AC-Delco houses, but only one offers this program.

[cwalden]

I use 2 Delco wholesalers. My primary gives
discounts per invoice or via monthly credit.
The secondary gives not as big discounts per
invoice and keeps a reserve that can be used
as all Delco or a % of that reserve as a credit wich can be used as a obsolete write off.