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Old 01-26-2017, 02:04 PM   #22
bbdrew
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Join Date: Jul 2015
Posts: 19
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This is such a great thread and it sounds like we have parts managers and GM's/Dealers on here.

I'm of the thought that everyone is to blame for obsolete parts. Service dept, as was discussed. Parts manager, which is implied, but the GM's and dealers share in the blame. I've consulted at many dealerships and some just don't want to fire the guy, because he's been with them for 15 years, etc. No action = more obsolete parts.

Most of you GM's/Dealers are also so hands off with fixed operations, which is o.k. depending on the PM level of expertise.If you don't have a PM who has proven themselves time and time again, you can't treat them like a guy who has. You still have to oversee them and make sure they attain that level of management understanding where you can be hands off and not "baby sit". However, this doesn't mean tie their hands, so they can't fix the issues. Additionally, take a look at your hiring procedures. There are PM who are "fixers" and there are PM who can manage daily operations. If your dealership has a obsolete issue over 100K and a PM comes in for a job and they accept the national average salary/commission plan from 20 group, NADA, or Manufacture recommendation salary, you are most likely not getting a fixer. You are getting a guy who can do the job well and manage daily operations. If you want to get a "fixer" we cost substantially more and will have proven ourselves with other inventories, but your paying for that guy you don't have to "baby-sit". PM are like stock brokers. Yeah, you can get a cheap one, but your growth will be slower and you may lose some money along the way, or you can hire Warren Buffet and not worry about your money. The choice is yours, but don't cry when you have 100K obsolete parts, but kept your personnel expenses in line with what 20 group, NADA, or the manufacture wants them to be.
You want to fix your obsolete inventory hire a fixer. You want to be hands off with parts, hire a fixer or you can train one, but invest in their training and it will pay off.
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