PASE Question

[mrjaygraham]

Other than being able to do RIM and MR11 1% returns, is there any other incentive/discount for being PASE compliant on the parts side? Thanks in advance!

[olepartsguy]

YOU GET A KICKBACK SOMETIMES. WHY I SAY SOMETIMES? IF YOU MEET ALL THE CRITERIA YOU GET A FEW PENNIES BACK

[PartsDanager]

Other than being able to do RIM and MR11 1% returns, is there any other incentive/discount for being PASE compliant on the parts side? Thanks in advance!

'being able to do RIM' makes me laugh. Check your KPI and see how often RIM inventory turns vs standard parts benchmark. I'll clue you in, GM isn't interested in moving your inventory for you, they are interested in making you a mini warehouse and counting on us moving those parts between dealers.

[Fixed Ops Mgr]

Other than being able to do RIM and MR11 1% returns, is there any other incentive/discount for being PASE compliant on the parts side? Thanks in advance!

'being able to do RIM' makes me laugh. Check your KPI and see how often RIM inventory turns vs standard parts benchmark. I'll clue you in, GM isn't interested in moving your inventory for you, they are interested in making you a mini warehouse and counting on us moving those parts between dealers.

Yes, you are right on target. When I look at my RIM KPI's for inventory turns my Rim parts turnover is usually 2+ turns lower every month than my non RIM parts turnover. Right now my RIM parts turnover is at 4.33 and y non RIM parts turnover is at 6.97 and this is usually the way my inventory trend works out each month.

[Ichabod Farquar]

It used to be RIM and PASE was a carrot and stick program. Do all of what was asked and the carrot was pretty good. Don't do it and the stick wasn't all that bad.

Now the carrot is much smaller and doesn't taste nearly as good. The stick is much larger and can really put a hurt on the dealer.

It is not so much what you can do while being compliant - it is the penalty for not being so. Take a look at the non-PASE/RIM terms. Last time I looked there was a 10% purchase penalty on everything. You can not return ANYTHING. That means all the protected RIM parts are suddenly non-returnable.

I may not understand non-PASE/RIM terms but I don't see how a dealer can function (profitably) without complying.

I am old, so I remember 5% stock order allowance, 8% return reserve, PRO parts discounts, Target discounts, etc. Of course there was only every other day delivery and stock orders were only once per week - but we managed. The key there was "we managed" and GM assisted us. Looking back GM might even have cared "a little" - no so much anymore.