sales dept pricing

[1pacav]

What pricing labor rate is typically used for used and new car sales department work. I am being told to use a discounted below cust pay rate which I don't believe truly represents our cost of doing business.

[robc]

I could say subscribe to the Service Manager newsletter where we answer questions like this But, instead I'll just give you the results of the survey we published in March issue -
For internals on vehicle inventory, our national survey showed:

Cost plus 0% - 15%	3%
Cost plus 16% - 40%	11%
Cost plus 41% - 100%	6%
Retail minus 26% - 50%	6%
Retail minus 5% - 25%	18%
Full Retail Rates	53%
Other	3%

So over half the dealerships just charge their retail rate (which they should as receommended by every consultant I've ever met).

Also here's a previous forum discussion: http://www.dealersedge.com/forums/noncg ... 00699.html


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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[This message has been edited by robc (edited 07-08-2005).]

[Mike Vogel]

We charge the same as our warranty rate which is $75.00 per hour. If a used car needs a lot of recon we do discount that amount to keep from wholesaling the car.
We offer discounts to our regular customers to keep the larger jobs from leaving so why not for used car dept which is our best customer.