DealershipForum.com - View Single Post

TORGY · 03-03-2016, 10:18 AM

Here we go again.....

ok so my owner is wondering if we should be doing a flat fee mark up on tire as opposed to GM's suggested markups. Our gross profit for last year on tires was 15.32%. I did do a comparison to the tire price match claims that we filed in 2015 and with GM's pricing structure that we are currently selling at we the average difference was $17.85.

So does it make sense to do a flat markup??? I truly believe that we can sell more tires with a flat fee if our service dept. can upsell other services to make a flat fee mark up turn profitable. It seems our current process is having a "C" tech slam tires on and run the vehicle out the door. Rarely do we see any additional services when we do tires.

03-03-2016, 10:18 AM	#1
TORGY Senior Member Join Date: Oct 2012 Posts: 122	tire priceing Here we go again..... ok so my owner is wondering if we should be doing a flat fee mark up on tire as opposed to GM's suggested markups. Our gross profit for last year on tires was 15.32%. I did do a comparison to the tire price match claims that we filed in 2015 and with GM's pricing structure that we are currently selling at we the average difference was $17.85. So does it make sense to do a flat markup??? I truly believe that we can sell more tires with a flat fee if our service dept. can upsell other services to make a flat fee mark up turn profitable. It seems our current process is having a "C" tech slam tires on and run the vehicle out the door. Rarely do we see any additional services when we do tires.