Discounts to Service Customers

[mightytitan9]

I was curious how many Parts Departments out there give discounts a "trade" or "wholesale" customer when their vehicle is in the shop. We have a few customers that we give trade price to over the counter and have been quoting and charging them full retail when they have us perform the work on their vehicles.

It hasn't presented an issue thus far, however, I want to be prepared if it does arise so I can respond with "I'm sorry, we don't discount parts put on in our shop" or a similar response.

Is this common practice or do you guys honor their wholesale/trade prices even when the vehicle is being serviced in your shop?

[camaroman]

We do 20% off in the shop for our wholesale customers. We have a good working relationship with them and they help us out if we ever need a favor. Tough decision either way. With GM and the parts transfer it takes more money away from us.

[possum]

We give our wholesale/fleet customers the same price as they pay in Parts. We actually do a lot of business like this with fleets and rock lots, and it avoids any conflicts. We've had issues the other way too, when a fleet commercial customer is set up with a discount in Service, they expect it on over the counter Parts as well. So I make sure they are noted as such and make sure their discounts match in both departments. I look at it from their POV and they don't care about GP transfer or other mumbo-jumbo, so just make it right for them.
ReyRey has a setting in 2120 for Parts pricing on RO"S and it's easy to make them both 15 or 20 off etc.

[LOKI1]

We charge retail because of our retail for warranty situation. If we have a problem we do whatever it takes to fix it.

[GaryinTempe]

Either way they are buying parts from you. The discount should be consistent on both sides of the building.

[dbuck]

They get their discount for parts paid through the shop.

[Denise Trimble]

This dealer is different than any I've worked for in that they charge wholesale at the parts counter, but only give a percent off in Service. They do this for employees as well. Bizarre. No chance for change because, say it with me folks: "We've always done it that way." I digress............

[X476]

We've always done it that way."


I feel your pain. Hear this almost daily.

[Fixed Ops Mgr]

Either way they are buying parts from you. The discount should be consistent on both sides of the building.

I agree with your statement after recently going through a big blow up with a customer who got the dealer involved. Very unpleasant experience. They were a trade
customer who was getting their parts at 15% off list but paying full list when their vehicle was in our shop. Dealer stated the customer should pay the same price for
parts if they purchase them over the counter or have them installed in our shop. After thinking this through, I could see both the customer's point of view as well
as the dealer's.

We now have consistent pricing for each customer based on purchase volume and our customer's pay the same price for parts installed in our shop or purchased
over the counter. Wholesale customer's pay wholesale price in parts or service. Retail customer's pay list price in parts or service and some receive a discount
based on purchase volume and customer loyalty.

Save yourself the headache and angry customers by giving your customer's a consistent price no matter if they are a parts customer or a service customer. They are
dealership customer's who need to be treated fairly.

[mightytitan9]

One of our fixed ops managers comments against it was that we are tying up a rack on a discounted parts customer when we could have a full retail paying customer on it.

I guess another question should be, are you guys giving "manufacture suggested trade price" or are you creating your own?