Service and Parts discounted for Sales?

Brittany DeVries

Our dealership is having a conflict that I am sure many others have. I am curious if the industry has moved to a specific trend. So here are my questions..

-Those with service centers - what do you charge the sales department for internal work? Do they pay the retail labor rate that a customer pays? Or is it discounted and if so, by how much?

-For parts, same thing. Does sales pay retail price or a discounted rate? And discounted by how much?

Bart Wilson

Brittany, this is a great question.  I've always heard that labor rate should be the same for retail and internal pay.  The dealerships I worked with did, however, have a discount for employees on parts.  

What do other dealerships do here?

Mark Rask

It iss the same at our store 

Kate Poole

We used to heavily discount, now we charge retail.

Bart Wilson

@Kate, can you walk us through your thought process here?  

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