GM Key prices

[tnpartsguy]

Well, GM went and did it again, most of the 'Circle +" keys took a huge price cut on the newest price tape. The did raise the price on the old VATS keys a dollar or 2...but some keys took a $20 hit PER KEY!

[XDCX]

Thanks for creating the thread.

While parts price reductions from the OEMs are not too common they do happen and the dealership ends up taking 100% of the loss.

Where do you take the hit on the Financial Statement - is it an "Inventory Adjustment" account? And do you take the hit in the month you receive the new pricing tape or do you wait and take the adjustment when you do your physical inventory?

[tnpartsguy]

We do a yearly LIFO adjustment. I ran LIFO for Jan~Fed 12 and I'm actually up even after the key thing, mainly due to Accy Assist Steps (Running boards) got an increase.

[XDCX]

Originally Posted by tnpartsguy

We do a yearly LIFO adjustment. I ran LIFO for Jan~Fed 12 and I'm actually up even after the key thing, mainly due to Accy Assist Steps (Running boards) got an increase.

Thanks for the information.

If I can ask, does your dealership pay you a bonus (or charge you a fine) based on your physical inventory results? (i.e. Does GM's action you mentioned in this thread cost you any money, or is it just the dealership that takes the hit?)

Please don't feel obligated to answer - I know some people are reluctant to discuss pay plan issues.

[tnpartsguy]

Originally Posted by XDCX

Thanks for the information.

If I can ask, does your dealership pay you a bonus (or charge you a fine) based on your physical inventory results? (i.e. Does GM's action you mentioned in this thread cost you any money, or is it just the dealership that takes the hit?)

Please don't feel obligated to answer - I know some people are reluctant to discuss pay plan issues.

Neither. If I'm over a little or short a little, all is well. If I'm over a lot, I have a lot of questions to answer; I've never been a lot short, but I'd bet I wouldn't be here anymore if that was the case.

The dealership takes the hit on price decreases. As long as I can show them on the LIFO report, I'm ok.

[XDCX]

Originally Posted by tnpartsguy

I've never been a lot short, but I'd bet I wouldn't be here anymore if that was the case.

I knew some parts managers who were really stressed during their annual inventory. I'm sure the list of PMs who lost their job shortly after an inventory is pretty long.

[JoeRocket]

Originally Posted by XDCX

I knew some parts managers who were really stressed during their annual inventory. I'm sure the list of PMs who lost their job shortly after an inventory is pretty long.

I almost lost my job because of a faulty Factory Master Update that was loaded remotely the day before I took physical inventory. I searched (and puked) for a full week. Found it by accident...

[XDCX]

Originally Posted by JoeRocket

I almost lost my job because of a faulty Factory Master Update that was loaded remotely the day before I took physical inventory. I searched (and puked) for a full week. Found it by accident...

I bet that was a long and miserable week.

Your example is one of the reasons I think there's a need for a forum where dealership owners and employees exchange information. I'm betting that there were others who figured out the problem with the faulty Factory Master Update that may have shorted your misery.

Regardless, I'm glad you found the problem and didn't lose your job.

[JoeRocket]

Originally Posted by XDCX

I bet that was a long and miserable week.

Yeah, realizing that a guy that I've never met in Ohio making a mistake could cause me to be fired for incompetence made a pretty large impression on me. I still haven't been able to put my thoughts about that scenario into words but I've been working on it.

[ohiobuckeyes]

Originally Posted by JoeRocket

Yeah, realizing that a guy that I've never met in Ohio making a mistake could cause me to be fired for incompetence made a pretty large impression on me. I still haven't been able to put my thoughts about that scenario into words but I've been working on it.

The Reynolds and Reynolds Company is know for incompetence in there tech support system. Some days their very smart people and some dumb as a box of rocks. Boy do I miss them.....

Was the error only for GM or All Parts Updates?

[JoeRocket]

Originally Posted by ohiobuckeyes

The Reynolds and Reynolds Company is know for incompetence in there tech support system. Some days their very smart people and some dumb as a box of rocks. Boy do I miss them.....

Was the error only for GM or All Parts Updates?

I was only looking at our store, and that was a Chrysler price tape.