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Restock Fees GM
Posted: Wed Aug 05, 2020 5:19 pm
by Kdiperi
Anyone else just completely disgusted at the robbery that is GM's 35% restock on anything returned SOR ? This is just outright highway robbery considering that parts gets nothing in the way of discounts or assistance from GM as it is . When we get customers who have to return something and we charge them the 35% restock fee they loose their minds as to why GM would do that . We can't absorb all of that kind of back fees so we pass it on to the customer. How does anyone else handle this robbery ?
Re: Restock Fees GM
Posted: Wed Aug 05, 2020 6:22 pm
by bsnyder723
Just another way for GM to screw us!!
Re: Restock Fees GM
Posted: Wed Aug 05, 2020 7:14 pm
by PartsPlant81
Just use it as another reason why I lose all of my wholesale customers to other dealerships that don't charge any of the restock fees.
35% is definitely gouging.
Re: Restock Fees GM
Posted: Thu Aug 06, 2020 6:03 pm
by TheEd
Perhaps if they didn't throw 60% of their returns in the dumpster, they wouldn't need to charge 35% restocking, just a thought there GM.
Like everyone else, I pass those fees on. Counter retail, I drill it in their heads before buying, "Did you give me a VIN?", "Did you point out the part you wanted on my diagram?", "This part has a 35% restocking fee if you return it, are you confident in the AutoZone minimum wage employee or Facebook diagnosis?"
I pass it on to the service department too, you tell me to order it and fail at getting the customer back in or misdiagnosed it, not my problem.
Wholesale understood, the few accounts I lost where those body shops who were trying to double dip, getting insurance to pay for genuine parts and substituting for aftermarket or used, so not exactly business worth having to begin with.
Re: Restock Fees GM
Posted: Thu Aug 06, 2020 7:05 pm
by smoyer
Just pass that great GM feeling on i'll make exceptions for a shop that usually doesn't have many returns but for the most part they are lucky to get anything back
Re: Restock Fees GM
Posted: Thu Aug 06, 2020 11:14 pm
by Whatsyourvin
We rarely charge restocking fees even though I feel we should. We are our town's largest wholesale dealer and as such have a ton of bodyshop customers. They are the absolute worst...many times the adjuster will said "order all the parts" then realize it's a total loss and a week later the same parts come back to us. Have seen many credits in the 5-10K range over the years. We have an offsite warehouse that we pay close to $10K/month for and it holds all our large parts, and about 90% of it is returns. Friggin brutal. We also realize if we charge our mechanical wholesale customers, they'll just go elsewhere. There are other dealers in town who will do no restocking so we have to play ball.
We order everything on DRO (CSO only when necessary), so we build a decent return reserve. We keep the part for 12 months and send it back using that. We rarely send stuff back and get hit the 35%.
Re: Restock Fees GM
Posted: Fri Aug 07, 2020 12:55 am
by Whiner
35% is actually not the correct / complete fee.
We charge 39%.
35% fails to include the 4% freight they also charge you.
Re: Restock Fees GM
Posted: Fri Aug 07, 2020 12:41 pm
by CADLOU
Whatsyourvin wrote:
We order everything on DRO (CSO only when necessary), so we build a decent return reserve. We keep the part for 12 months and send it back using that. We rarely send stuff back and get hit the 35%.
Are you sure you are getting that Return Reserve? I know you get it for RIM ordered DROs but according to the Parts and Procedure non-Rim gets no reserve and is not protected. That is what has stopped me from doing a dro on some of my special orders. I don't like the 35% part, but I have a year to get rid of it and would rather sale it at a discount or at cost before taking the 35%. Even then selling it at 10% before the year is up is a better option. At least I have a year to sell it before taking the hit.
Re: Restock Fees GM
Posted: Fri Aug 07, 2020 12:54 pm
by LivinDaDream
Uh ... yea .... unless they have SPECIAL RULES for wholesale dealers, you ARE NOT getting return reserve and discounts on anything other than RIM ordered parts; it has been this way for a few years now. As an aside, 1% obsolescence protection is a COMPLETE JOKE and just an appeasement for the dealers; industry standard is that 7 - 8% of your inventory on the shelves will go stale each year.
THANKS for watching out for us, GM !!!
Re: Restock Fees GM
Posted: Fri Aug 07, 2020 2:36 pm
by stevejm71
We charge the 35% restock fee on a case by case basis. Most everything sold over the front counter that gets returned we charge them a restock fee. Wholesale accounts are on a case by case situation. Returns from the service dept. are a case by case situation. Most major returns from our body shop we get the insurance companies to pay the restock fee. If they give us the ok to order and for whatever reason the vehicle does not get fixed its on them and have not had any issues of them not wanting to pay it.