Originally Posted By: KrisZ
So you're saying that the $120 an hour covers all other expanses for the whole dealership? Why is that? Aren’t the parts sold at a profit as well, that should cover the parts guy, the service advisor sells services which aren't all labor as well, you have fluids, parts and other things that are all sold at profit. Also aren't there salespeople that make profit on selling cars? So the dealer has all these sources of profit but only the labor covers the cost of running the place? Sorry I don’t buy it.
Again, I realize dealers are not charities, but this is ridiculous and there is no excuse for it. Upgrades to facilities and equipment should've been budgeted from the beginning not passed along to the customer as increased labor charge. It's not like dealers don't know about them, it's in their contracts.
I mean, do you go to your boss and ask him for a raise because you just bought new appliances or had to repair the roof on you house? Of course not, so why should a dealer do the same?
It all pools together to cover costs. Car sales, parts sales and service sales all have overhead factored in. Believe it or not but that is how it works. Try running a multimillion dollar business and tell me how you are going to cover cost?
Can not help if you believer or not believe the reality of business.
Also, if the dealership is of a larger stock holding ownership, then expect that 25% plus profits have to be maintained above costs. Everybody wants to find a "Fat Cat" to demonize but in the end, reality and perception are two different worlds.
So you're saying that the $120 an hour covers all other expanses for the whole dealership? Why is that? Aren’t the parts sold at a profit as well, that should cover the parts guy, the service advisor sells services which aren't all labor as well, you have fluids, parts and other things that are all sold at profit. Also aren't there salespeople that make profit on selling cars? So the dealer has all these sources of profit but only the labor covers the cost of running the place? Sorry I don’t buy it.
Again, I realize dealers are not charities, but this is ridiculous and there is no excuse for it. Upgrades to facilities and equipment should've been budgeted from the beginning not passed along to the customer as increased labor charge. It's not like dealers don't know about them, it's in their contracts.
I mean, do you go to your boss and ask him for a raise because you just bought new appliances or had to repair the roof on you house? Of course not, so why should a dealer do the same?
It all pools together to cover costs. Car sales, parts sales and service sales all have overhead factored in. Believe it or not but that is how it works. Try running a multimillion dollar business and tell me how you are going to cover cost?
Can not help if you believer or not believe the reality of business.
Also, if the dealership is of a larger stock holding ownership, then expect that 25% plus profits have to be maintained above costs. Everybody wants to find a "Fat Cat" to demonize but in the end, reality and perception are two different worlds.