Markup on Cores??

[Fixed Ops Mgr]

I have a question that I just can't figure out. I recently quoted a transmission to a customer and I was
told I was to high on my price. Part #19353988. This was going to be an over the counter sale if they
bought it so our service dept was not involved. After losing the sale I thought I would price shop some
other dealers with that vehicle application to see if my pricing was high or not. I got a lot of different
prices and information.

Here is what I cannot figure out. This transmission has a 1,000 core charge on it. I checked 8 different
dealerships both large stores and small stores and was quoted by 6 of the 8 dealers the core charge amount
was different than the 1,000 core from GM.
2 stores quoted me the price and said there is a 1,000 core on the transmission and the other 6 stores
told me the core price was anywhere from 1,100 to 1,250

Why would a dealership markup the core price when they have to refund that money back to the customer
when the core comes back to that dealership? What am I missing here? What is the purpose of marking up
a core charge on a part? The store has nothing to gain in my opinion. Is there a way that stores are making
money on cores that I can't figure out?

Have you ever heard of this? What am I missing????

[Zep33]

Might just be different DMS's and Matrix's / setup coming in to play with the way they put a part on an invoice.

Nothing I would worry about. I would think it would hurt the guys quoting higher cores as even though you'll get that back, you still have to put that amount out to begin with.

I know I would buy from the one with the cheaper core.

Also, those wholesale whores on the internet will sell a transmission for 50-100 over cost to keep the line moving. Can't compete with those guys so don't even try. They buy by the truckload and get better prices to begin with. Best to try to sell with better "service" than those guys can provide.

[Bearster18]

"well I can get it for such and such off amazon." Go ahead be my guest but enjoy if you have any warranty issues!

[marko65]

Here in Michigan. cores get taxed as a purchase, but the refund of a core does not refund tax. maybe someone is trying to make some tax money. that's all I can figure. We use MSRP for every sale here

[gully]

We had a local jobber marking up cores and I lost money until I wised up.

When a part is purchased from GM you pay only one core charge and are credited that same amount when the core is returned. If you buy from a dealer that marks up the original $1000 core amount to $1250 and then you return the core to the SAME dealer, all is fine. If you are a GM dealer and pay the $1250 core and then return the core through your OWN store to GM, you only get $1000 credit and lose $250. The selling dealer just made $250. Most engines and transmissions are shipped. To return the core to the selling dealer "usually" never happens.

[Zep33]

Good point Gully. I'll bet some of those dealers are counting on a fraction of them to not return the cores to the same dealer. Pretty sleazy