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I had such a good response to my post last week about the relationship between the sales department and the accessories department, I decided to take the conversation a step further and write a post on the relationship between sales and service.
I received a lot of great comments talking about what an appropriate markup would be on our accessories to make it to where sales had an opportunity to make some gross on the accessories that we included into the deal. It triggered the question: " What is an appropriate rate that the service department should charge the sales department with regard to reconditioning used cars"? I am the used car manager at our store, so this is a topic that is pretty close to home and is also something that I have spent lots of time discussing with the GM.
The thing that has always pissed me off about our reconditioning process is that the used car department pays the same $90 per hour for labor that any shmuck that walks in the front door would pay. I don't know if that is the norm at most dealers, but I'm not a huge fan of paying that much (especially since I am by far their best customer). The reason I hate it so much is because I get paid off the gross of each deal and every extra dollar that I give to the service department is a dollar that I don't get paid on. My argument to the GM is that he is making the profit either way, regardless of the labor rate that I pay to the service department.
I'm thinking there has to be a better way to do this to where it is a win-win for sales and for service. What do you guys think?