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Dealer Holdback questions

462 messages,  Last post on Dec 10, 2007 at 2:52 PM

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Messages Page 45 of 47

#433 of 462 Re: Determining holdback [isellhondas] by exb0

Nov 29, 2007 (11:10 am)

Replying to: isellhondas (Nov 29, 2007 10:46 am)
I don't know, Isell, my dealer charges $90 per hour for labor, do you think they pay over $30 per hour to the techs? And lets not even mention that those are the book hours, not the actual hours worked.

#434 of 462 Re: Determining holdback [exb0] by volvomax

Nov 29, 2007 (12:07 pm)

Replying to: exb0 (Nov 29, 2007 11:10 am)
Do we really need to get into this?
A lawyer charges $300/hr
 
Markups on goods and services are part and parcel of the real world.
 
If your gonna use the car dealer scale and complain,then EVERYONE is horrendously overpaid and making wayy too much money.

#435 of 462 Re: Determining holdback [exb0] by jeffyscott

Nov 29, 2007 (12:38 pm)

Replying to: exb0 (Nov 29, 2007 11:10 am)
my dealer charges $90 per hour for labor, do you think they pay over $30 per hour to the techs?
 
That is just silly,
 
Do you think the techs get no paid time off, do you think they have no health insurance, life insurance, disability insurance, FICA tax, etc. paid by the employer?
 
Do you think there is no cost for the facility that they work in?
 
Do you think the rest of the service department personnel get no pay or benefits?
 
I'm not in that busness, but pretty sure my hourly pay represents somthing between 1/3 and 1/2 of the total cost of me, to my employer. I assume it is a similar ratio for auto techs.

#436 of 462 Re: Determining holdback [exb0] by isellhondas

Nov 29, 2007 (1:59 pm)

Replying to: exb0 (Nov 29, 2007 11:10 am)
You really need to think about some of the other costs.
 
We have four people who man our appointment desk, six Service Advisors, three shop managers and paperwork people. These people, like our techs like to get paid. Then we have lot porters, the guy who drives our shuttle van.
 
And if you had any idea what we pay to replace and constantly update our shop equipment, that 90.00/hr would start looking pretty reasonable.
 
Have you ever worked as a mechanic or managed a shop, as I have?
 
Sometimes a skilled mechanic can beat book times. On other, nasty jobs they can't. Today's well equipped mechanic/technician probably has 40,000 invested just in his personal tools alone.
 
It's not all gravy!

#437 of 462 Re: Determining holdback [isellhondas] by kirstie_h HOST

Nov 29, 2007 (2:11 pm)

Replying to: isellhondas (Nov 29, 2007 1:59 pm)
Customers figure that it's ALL gravy. To hear some talk, you'd think that salespeople would be living on easy street just for opening the doors every day.
 
Dealers say that NONE of it is gravy. To hear some talk, you'd think that the dealer is in the red every day and keeps the biz open just for public service.
 
I suspect the truth can be found somewhere in the middle.

#438 of 462 Re: Determining holdback [kirstie_h] by isellhondas

Nov 29, 2007 (2:22 pm)

Replying to: kirstie_h (Nov 29, 2007 2:11 pm)
Oh, I think most mechanics would be happy to tell you about the gravy jobs. It's a good thing there ARE gravy jobs or there would be a bigger shortage of techs than there already is!
 
Finding a rattle under a dash or trying to track down an intermittent drivability problem can be vexatious work!

#439 of 462 Re: Determining holdback [kirstie_h] by british_rover

Nov 29, 2007 (2:57 pm)

Replying to: kirstie_h (Nov 29, 2007 2:11 pm)
I think you would find most new car operations are run in the red almost all the time. The used car side might make money on its own but once you lump in the new car side loses then over all sales department probably runs at a loss or at best break even.
 
The money is made in parts and service.

#440 of 462 Re: Determining holdback [isellhondas] by exb0

Nov 29, 2007 (2:58 pm)

Replying to: isellhondas (Nov 29, 2007 2:22 pm)
Isell, I was just following up on Joel's post that basically said that the holdback alone pays for 25% of all the expenses of his store that includes the lights, building, salaries and the porter. If that's the case, then you guys are doing really well and you have nothing to complain about when a customer hits you below invoice, especially if you keep in mind all the other sources of revenue.
 
However, I understand your point of view, it doesn't matter how much you sell the car for, you will always want more and you will always have a justification for it. It is human nature to always want more, and it is also human nature to blame somebody else when you can't get that.
 
I personnaly know some store owners and members of their immediate families. Trust me, they are not suffering. However, they are always whining about what cheapskates their customers are, even though they enjoy a lifestyle that exceeds 99.9% of their customers.

#441 of 462 Re: Determining holdback [exb0] by joel0622

Nov 29, 2007 (3:37 pm)

Replying to: exb0 (Nov 29, 2007 2:58 pm)
personaly know some store owners and members of their immediate families. Trust me, they are not suffering. However, they are always whining about what cheapskates their customers are, even though they enjoy a lifestyle that exceeds 99.9% of their customers
 
Kudos to them for being successfully business people and having the balls to take a chance on owning there own business. You don't speak badly of them so they must be ethical business people.
 
(the following is not directed at exb0, just talking)
Success is not a bad thing in the car business and you can't hold a dealer at fault or immediately brand them crooked because they are successfully
 
We work in the only industry in the world with the exception of the Crude Oil business that people dislike you for being profitable.

#442 of 462 Re: Determining holdback [joel0622] by venture

Nov 29, 2007 (9:21 pm)

Replying to: joel0622 (Nov 29, 2007 3:37 pm)
We work in the only industry in the world with the exception of the Crude Oil business that people dislike you for being profitable.
 
Well...I'm not exceptionally happy about what my attorney charges me per hour.
 
My real estate agent charges 6% too which doesn't make me jump for joy either.
 
 

Messages Page 45 of 47

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