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Subject:Re: VW Parts Pricing
From:raceingcajun
Date:Fri, 9 Aug 2013 16:41:54 -0500

Its called "Price Fixing" and its against the law for the manufacture
to "set" the retail price of the cars or spare parts. Notice the words;
"Manufactures suggested retail price". They can suggest all they want, and
bring pressure to bear in a lot of ways, but the actually price is arrived
at on the dealer level, by the dealer himself.
    Last dealership I worked at, the new car mark up was 13.4% over invoice,
but that was flexible at the Sales Managers digression. Taking into account
trade-in, down payment, etc. The parts mark up was on a matrix system. The
list price was on a sliding scale, the lower the suggested list price of a
part, the higher the mark up.........up to and sometimes above 110%. On
items that had a higher recommended list the mark up was much lower, down
around 5% or 10%.
    In the final analysis the total mark up across the board averaged about
28% to 30%. As Service Director, my commission was keyed monthly off the
profit from the Service Department, Paint & Body shops along with the Parts
Departments. Although I didn't get a cut from new or used car sales, I was
happy with my Service/Body/Parts cut.

AND A SIDE NOTE:    As I write this "Bullet" is being shown on
TCM............I just love watching all the Volkswagens on the streets of
San Francisco in 1968. Ah a simpler time for sure! One day, I'm going to dig
out the old VCR and make a list of all the VW's I see.       Well maybe the
Grand kids will any way!  :>)

HAVE A BETTER ONE!

Howard

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