DEALER TO DEALER PRICE

[AL]

I'M LOOKING FOR SOME INPUT ON YOUR FEELINGS ON WHAT PRICE YOU USE TO SELL TO OTHER DEALERS. IT SEEMS EVERYBODY WANTS TO BE AT TEN OR FIFTEEN PERCENT. I HAVE AGREEMENT WITH THE DEALERS NEXT DOOR TO US AT 10% BUT WHAT ABOUT THE ACROSS TOWN? I DON'T KNOW ABOUT YOU GUYS BUT MY EXPENSES PERCENT KEEPS GETTING HIGHER AND I DON'T SEE A LOT CALLS
EXCEPT FOR SOMETHING NOBODY ELSE IN TOWN
HAS.
THANKS FOR SOME DIFFERENT VIEWS
AL

[Gerry Laughlin]

Al,
I was originally from Detroit where the standard seemed to be cost plus 10%. Here in my current area (Dayton) it is trade, which over the years has come to make a lot more sense to me than cost +10%.

Gerry

[Richard]

Nashville TN area, most dealer sell to each other @ 20% over on most items, engines and transmission are $100 over truckload usually. However, I have been informed that one of the larger national dealer chains is offering cost plus 15% across the board. I'm not changing my pricing though, in fact, I am kinda surprised that some of the dealers didn't cut the discount a bit after GM cut our discounts and such last year.

[scotstrong]

In the larger markets it is more difficult to get a number of dealers to agree on any kind of "blanket" percentage to all other dealers of same manufacturer. The dealers with the big inventories have much less to gain selling to smaller dealers at say cost plus 10% as opposed to the little dealer buying from the big dealers at the same cost plus 10%. Who has the investment in inventory and who doesn't? It makes sense for the smaller dealers to have a mutual agreement with each other. The bigger guys in northern ohio are at cost plus 15%, but must be justifed by adequate sales. If you are cherry-picking the big guy when he's the only one that has it, do you have the right to expect the same break as the guy who calls them first for most everything? If the manufacturer, such as GM, will pay in most warranty instances up to the difference between dealer cost and trade price if you pick up a part to facilitate a same-day repair, wouldn't it make more sense to sell to each other at that trade price to help recoup some of the gross that they have taken away in the form of discounts? Then the other problem you run into is are you going to expect another dealer to sell to you at two different prices depending on whether or not it is for a warranty repair?

[Parts007]

The standard in my area is 15% above(GM Dealers). I sell to three (small to mid-size) local dealers at 10% above to get them to drive by other dealerships and buy from me. This has increased their sales. This also allows me the convenience of selection when searching locally for a part (I buy at 10% above from them). Not only do I get to choose from the big dealers, but also the smaller ones too!

To me, selling to other dealers does not make lots of money, but it moves your inventory (turns), and is really a convenience factor when I am looking for a part locally.

[TheSaint]

In Texas it's a straight 15% but I don't know anyone that wouldn't sell to me at 10%, you just have to ask per deal. Mostly, we only asked for 10 on big ticket items.

[vaxley]

In the Seattle area, all GM delaers sell at cost +20% between each other-this is fair and a service you're providing to other dealers to get their CSI-we also deliver these to the dealers in the area too for this price.

[This message has been edited by vaxley (edited 02-06-2003).]