Go Back   DealershipForum.com > Domestic Franchises and Independent Dealers > General Motors > Parts

Notices

Reply
 
Thread Tools Display Modes
Old 01-07-2016, 08:35 AM   #16
tnpartsguy
Senior Member
 
Join Date: Jul 2010
Posts: 506
Default

Look in area51 for some hints on staying compliant, just don't let your rep see them.
tnpartsguy is offline   Reply With Quote
Old 01-07-2016, 11:06 AM   #17
BCCParts
New Member
 
Join Date: Jan 2016
Posts: 17
Default

I generate my RIM return every 15th or so of the month. Otherwise you will be swimming in obsolescence. Also be careful of proposals reduced. RIM will only take back what is recommended so if you don't sell or return them when the reductions are lowered you will have more than GM will take back.
BCCParts is offline   Reply With Quote
Old 01-12-2016, 03:36 PM   #18
TORGY
Senior Member
 
Join Date: Oct 2012
Posts: 122
Default

Quote:
Originally Posted by tnpartsguy View Post
I would love to have the ability to have someone buy me a plane ticket, get me a hotel room, let me come in and help a dealership like this get back on it's feet, then I can ride off into the sunset..... the departing PM really should be held on criminal charges (destruction of property and theft of intellectual property would hold up in court.)

ditto, have had to do this for a few small dealerships that we have purchased over the years... sometimes its rewarding and sometimes it overwhelming... like walking into a war zone.
TORGY is offline   Reply With Quote
Old 01-13-2016, 09:28 AM   #19
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by TORGY View Post
ditto, have had to do this for a few small dealerships that we have purchased over the years... sometimes its rewarding and sometimes it overwhelming... like walking into a war zone.
In my eyes one of the biggest benefits of either hiring someone with experience or bringing someone in to consult who has experience is their ability to determine if the department is on the right track.

While almost anyone can identify a department that is either a complete failure or a complete success, there are far fewer who can chart the process from turning a failed department into a success and determine if they're on the right track.

I can think of so many inexperienced managers who worked hard to make improvements but ultimately just ended up spinning their wheels and never generated the desired results.
XDCX is offline   Reply With Quote
Old 01-22-2016, 11:47 AM   #20
pAARtsmanager
New Member
 
Join Date: Dec 2015
Posts: 14
Default

Thanks for all of the info so far everybody!

I've started to get a handle on the RIM program and we are now back in compliance with GM. As far as the RIM returns go, am I correct that it will automatically create a monthly return that I need to approve?

I've successfully processed my first bunch of warranty parts return requests, core returns, and have gotten going on the GM tire program which I like so far. Progress being made a little bit at a time...
pAARtsmanager is offline   Reply With Quote
Old 01-25-2016, 12:02 PM   #21
BCCParts
New Member
 
Join Date: Jan 2016
Posts: 17
Default

Yes you will have a return generated under the Obsolescence Protection Query. You must look at the Created status and approve accordingly. Sounds like you have a handle on things. The GM tire program I wanted nothing to do with. The prices are higher and for our customers to come in with a quote from the competition puts them either in the competitions store or on their websites. We do well with the tire rebate and the match program combined but that's only seasonal so to speak.
BCCParts is offline   Reply With Quote
Old 01-26-2016, 09:47 AM   #22
tnpartsguy
Senior Member
 
Join Date: Jul 2010
Posts: 506
Default

The GM tire program is only as strong as the local distributor and their rep. I had 2 great ones, and I'm trying to train the new one, but so far it's been slow.

The match program is an issue, because of the limitations (brick and mortar store (will not price match Discount Tire or Tire Discounters!!) within 50 miles, has to be a WRITTEN quote (most stores won't print one off and let a customer leave). I usually get me money back quickly. I just wish the rebates ran more often.
tnpartsguy is offline   Reply With Quote
Old 01-27-2016, 08:15 AM   #23
pAARtsmanager
New Member
 
Join Date: Dec 2015
Posts: 14
Default

Maybe that's why I've been happy with it so far. Our distributor has been great and our rep has been one of the most knowledgeable and helpful I've encountered so far. It probably helps that he spent many years prior as a GM parts manager before moving over to tires. I do agree though that, from what I've encountered so far, the Ford program seems to run better rebates more frequently.
pAARtsmanager is offline   Reply With Quote
Old 01-27-2016, 10:47 AM   #24
BCCParts
New Member
 
Join Date: Jan 2016
Posts: 17
Default

Quote:
Originally Posted by tnpartsguy View Post
The GM tire program is only as strong as the local distributor and their rep. I had 2 great ones, and I'm trying to train the new one, but so far it's been slow.

The match program is an issue, because of the limitations (brick and mortar store (will not price match Discount Tire or Tire Discounters!!) within 50 miles, has to be a WRITTEN quote (most stores won't print one off and let a customer leave). I usually get me money back quickly. I just wish the rebates ran more often.
My real problem is that we have two large distributors with satellite stores in our area. They not only sell to us but also people in the local population. Typically the GM tire program adds $15-$20 per tire to our quotes over what our suppliers are selling them for. This is where it gets tricky for us. They do not have online pricing so we almost are required to let our customers in their showrooms to do price matching. The 100 mile radius for the match program still does leave the door open for tirerack.com etc. The rebates do certainly help!
BCCParts is offline   Reply With Quote
Old 01-27-2016, 12:18 PM   #25
tnpartsguy
Senior Member
 
Join Date: Jul 2010
Posts: 506
Default

You can't do price match on TireRack.com or other online vendors.

4. Eligible Competitors: Competitors that have a local place of business (within 100 miles of the dealership location) where they sell and install tires. Quotes from the Internet are only eligible for local tire retailers (within 100 miles of the dealership location) that install tires. For example, TireRack and TireBuyer are not eligible competitors. Competitors "Buy 3 get one free" and “Buy 3 get one for $1” programs are not eligible for the price match. Other GM dealers are not considered eligible competitors. Fleet and Government quotes are not eligible to price match. Competitor’s one day offers, for example “Black Friday”, will only be eligible to price match if the customer has their tires installed the same day as the one day special.

The other thing is how much markup are you getting? We dropped to a $10/per tire flat. Tires are not really a profit center - they are more of a way to get the customer to keep your customers in house.
tnpartsguy is offline   Reply With Quote
Old 01-28-2016, 08:01 AM   #26
BCCParts
New Member
 
Join Date: Jan 2016
Posts: 17
Default

We typically try to be at a 11-15% markup on tires. I have actually had tire sales separated into a different line on our doc. Regardless they still show in our bottom line and I would think the $10 per tire would make us look even worse. We don't do price match on tirerack.com etc. I meant that they still have a door open to our customers we cannot compete with, sounded right till I reread it lol. I figure that we really need to decide if we want markup or tire sales. The dealer principal here is about the markup for sure.
BCCParts is offline   Reply With Quote
Old 01-28-2016, 08:18 AM   #27
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,869
Default

Quote:
Originally Posted by tnpartsguy View Post
Tires are not really a profit center - they are more of a way to get the customer to keep your customers in house.
That's the pitch I've always heard and I think it makes sense.

You don't want your customers to establish a relationship with another business to get their replacement tires because the likelihood is that other business will want to keep the customer for future maintenance/repair work.
XDCX is offline   Reply With Quote
Old 01-28-2016, 08:42 AM   #28
tnpartsguy
Senior Member
 
Join Date: Jul 2010
Posts: 506
Default

Tires should be in the own inventory (243) and show as a separate line on the statement. Stacking them in to your regular shop sales just brings that percentage down.
My GP on tires is showing 11.84%, my GP on CP is 40.77%. Adding tires back in would bring it to 36.75%.(yes, we sell a great deal of tires, right at 12K in sales MTD).
Break your oil and accessories out too, (244 for oil, 242B accessories) to show a truer picture of your sales and markups.
tnpartsguy is offline   Reply With Quote
Old 01-28-2016, 01:30 PM   #29
BCCParts
New Member
 
Join Date: Jan 2016
Posts: 17
Default

You certainly are moving tires. We are higher than that because we abuse our sales dept but at a seemingly consistent 19.8% on a 9k sales average. We are now doing matrix pricing (except tires tune up parts and so on) for internal and customer pay RO sales due to the swing of warranty vs customer pay swap. Sadly till the dust settles and we figure our wholesale into the picture we are ending the month @ a 29% gp average. Hoping I am not hijacking a thread here lol. Its just very interesting to get some info outside of our 20 group.
BCCParts is offline   Reply With Quote
Old 01-28-2016, 03:48 PM   #30
tnpartsguy
Senior Member
 
Join Date: Jul 2010
Posts: 506
Default

Quote:
Originally Posted by BCCParts View Post
We typically try to be at a 11-15% markup on tires. I have actually had tire sales separated into a different line on our doc. Regardless they still show in our bottom line and I would think the $10 per tire would make us look even worse. We don't do price match on tirerack.com etc. I meant that they still have a door open to our customers we cannot compete with, sounded right till I reread it lol. I figure that we really need to decide if we want markup or tire sales. The dealer principal here is about the markup for sure.
One other thing, we hit our purchase goals many times last year and got monthly rebates 9 out of 12 of $800~1000 per month, and we hit 2 quarterly goals and the rebates were in the $1500 range. That went to 687, but if you take that money in account, lowering the markup to $10/tire and getting that many more sales to hit those goals it more than balances out, I think.
tnpartsguy is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
New GM Parts Manager bigblock Parts 2 03-10-2015 08:11 AM
New Guy Parts Manager from Kansas Joker Introductions 11 06-06-2012 03:28 PM
New to a parts manager position Ranger505 Parts 18 04-30-2012 07:00 AM
Parts Manager Blog JoeRocket Parts 8 07-27-2010 09:47 AM


All times are GMT -7. The time now is 11:35 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016