Co-Op credits...service dept

[partsman103]

All co-op credits go to the Parts Dept. The reasons given was:
* due to labor sales/gross vs part sales/gross.
* Service has an opportunity to gain a higher % where as parts is somewhat "limited" in that area.
* parts purchases from GM earn co-op funds.

[Strap22]

I guess GM is different. Parts earns the Co-Op for P/S through purchases with Toyota. Yes, the Service dept does contribute to that because they are our #1 customer? Very few ads qualify for 100% reimbursement. We earn several thousand per month and can not use all of it. Toyota pays 3% of the purchase in advertising and 7% in return reserve. We split the advertising cost 70/30 Service/Parts.

[This message has been edited by Strap22 (edited 06-06-2007).]