Retail on internal sales

[robc]

How many of you are charging full retail on internal sales (namely UCD)? [of course menu pricing and specials would apply]

This practice seems to have grown in acceptance as a lower internal rate might just be hiding bad purchase decisions by the Used Car Manager.

You thought?




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

[pmterry]

All internal sales for parts and labor are billed at retail rates. It works out pretty well. It adds to the gross, keeps the UCD on their toes and keeps service in line as well (ie giving service away)

[Michael White]

All internal work is at retail. We found out the used car grosses went up when we did this.

Mike

[Misky]

Our used and new car sales are at a reduced rate. Sounds like retail works for everyone.

[jwise67]

OUR INTERNAL RATE FOR UCD IS AT A REDUCED RATE. LABOR RATE FOR INTERNAL IS THE SAME AS THE WARRANTY RATE.

[Alan Nicholson]

Do you guys have a pre-delivery department and if so, what is their labor rate for detailing, car wash, demo clean ups. Does your PDI department make repairs such as brakes, electrical, or other minor repairs or do these jobs go to Service? Does your PDI dept. have variable rates?

Thanks

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Alan1149@aol.com

[sallen1]

We use retail for all internal labor and parts, including used car re-con. The used car manager must use the shop.

As far as the detail department is concerned, we use a flat charge system that pays for the labor. Here's what I mean: The detailers are on the clock and every car that hits the inventory is charged $100 (no matter how many times the car is polished) which is then cleared against the detailers' pay. The account runs a little positive every year. The $100 is packed to the car (including wholesale units).

Why this way? I found that paying the detailers by the car tended to motivate everyone to detail the car very close to delivery (sometime after). And more frequently than not, the detailers would find some paint defect not noticed before the car was rubbed down. Now what happens is every car is detailed when we get it and then touched up at delivery.

We have a used car tech that's on flag time and gets paid for inspection. Prior to working on the car, the tech must provide an estimate of what it will take to re-con the car and the u/c manager must approve. Obviously, if the re-con charge will put us out of the market, the unit is wholesaled. The tech can do almost everything except heavy repair/tranmission/smogs.

Scott

[Doug]

We do internal work at retail rates for used cars but usually at reduced rate for lot damage, etc. Used cars get full treatment at full bore ! However, in fairness, we give u/c dept same discounts/service coupon specials that apply to retail customers at the time of write up. Also, if your gonna charge retail, the u/c dept is entitled to billing adjustments, concessions, etc if you run into a problem car, wrong diagnosis,comebacks, etc just as you would do for a retail customer. We value u/c dept as a customer and treat them accordingly. In return, they spend plenty of money with us !

[lovemotors]

All internal sales get charged full pop. It's good for all departments in the store.

[LRobinett]

We charge ncd/ucd full retail labor and discounted parts prices for mechanical repairs. We give them a discount on details, sealant packages, etc.