National Retail Plan brake pricing

[joecool17]

Hello everyone! I am curious to see how everyone is handling their pricing for brake pads and rotors. Recently, a GM service development guy came in wanting to change our pricing structure for service items i.e. air & cabin filters, spark plugs, wiper blades, etc. I made some concessions and gained some ground in some of these areas, but the big one I am having trouble with is brakes. What they desire, is for me to carry every line of brake pad and rotor. This includes GM O.E, Gold, and Silver. If you start looking at what this stuff costs, it is all over the board for a lot of it. Meaning sometimes I may make some money, or in some cases none. Here are the prices,
Silver Pad $55.00
Gold Pad $90.00
OE Pad $140.00
Silver Rotor $90.00 ea
Gold Rotor $125.00 ea
OE Rotor $140.00 ea
I must also note that we are on the National Retail Plan and they want this to happen so they can build a service menu for our website. We are a small store, and it seems like an awful lot of inventory to add. Our Service Advisors always have sold the Gold Pads and Advantage Rotors. I also feel that this may tip the scale in services favor money wise, as they have bumped their effective labor rate from $75 to $100 an hour. The other thing that bothers me, is they want us to stock all this so the advisors can sell in the lane. How do you sell brake pads and rotors without looking at them? Also, how are they to know if I have good stock at that moment in time? We all know how shortages are, right? Seems like you would want to know that we have it before you sell it. Sorry for the long post. We did a good job selling the original way, so now I'm supposed to drink this kool aid. Any thoughts and suggestions are appreciated, thank you.

[partsguy99]

Don't you just love it when the General DICTATES to you HOW MUCH PROFIT you can make. In the mean time I can guarantee you the markup on the parts sold to you is in the 400-500% range. Jeez, I hate GM.

[C8RFAN]

Same thing happened here...We lowered/adjusted some pricing, so service could up their rates ect.

We are a smaller store....Theres no way we were stocking 3 lines of every vehicle/brake code ect. We did agree upon family pricing (averaging)on pads, rotors, air, cabin, and advantage blades, which works for us.

We stuck with advantage rotors, gold pads and a few select OE's but not enough to write home about...

Just remember, if he was a service development guy, he came in to make SERVICE money, not parts.

[Denise Trimble]

We carry the Professional pads (unless there's a bulletin on them) and sell ALL OF THEM for $95.39ea. Shoes are not included on the National Retail Plan, so they are sold at list. Rotors we keep are the new Gold and sell for list unless I need to compete with aftermarket, which is few and far between right now. This sells quite a bit, and keeps us competitive while maintaining the advertised prices in the GM flyers.