Supplier Pricing Question - Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums

beausbriggs · 04-20-2009, 01:19 PM

Can someone explain to me EXACTLY how Supplier pricing works from a Dealer standpoint?

I get the supplier pricing, but have been told it won't be accepted because the dealer doesn't make much money on the car. I understand that on a car in demand it doesn't make sense to offer discounts that cut into their profit...

But how exactly does it work? I thought I read somewhere that their invoice is reduced because of the supplier price, and then they sell the vehicle at the supplier price which is lower than MSRP. Is this correct?

If it is, I'd gladly pay the difference in the profit margin they are losing from MSRP to supplier, as the price to me would be reduced without cutting into their profit. Win-win, right?

trm0002 · 04-20-2009, 01:23 PM

Quote:

Originally Posted by beausbriggs

Can someone explain to me EXACTLY how Supplier pricing works from a Dealer standpoint?

I get the supplier pricing, but have been told it won't be accepted because the dealer doesn't make much money on the car. I understand that on a car in demand it doesn't make sense to offer discounts that cut into their profit...

But how exactly does it work? I thought I read somewhere that their invoice is reduced because of the supplier price, and then they sell the vehicle at the supplier price which is lower than MSRP. Is this correct?

If it is, I'd gladly pay the difference in the profit margin they are losing from MSRP to supplier, as the price to me would be reduced without cutting into their profit. Win-win, right?

First: No dealer is REQUIRED to accept any discounts.

Second, if either Supplier or Employee pricing drops the car price to a level below invoice, the dealer is refunded up to invoice only by GM. The dealer does lose whatever the difference is between that and what he could sell the car for.

beausbriggs · 04-20-2009, 01:29 PM

Right, I understand that... But say GM then refunds $500 of a $1000 loss in profit (because of supplier pricing), I'd be willing to pay the extra $500 so they are made whole, while my price still remains below MSRP.

Dealer wins, I win, GM honors the supplier pricing... every one is happy, right?

04-20-2009, 01:19 PM	#1
beausbriggs 2G1FT1EW3A9113560 Drives: 2010 Camaro SS/RS Join Date: Mar 2009 Location: DC Area Posts: 169	Supplier Pricing Question Can someone explain to me EXACTLY how Supplier pricing works from a Dealer standpoint? I get the supplier pricing, but have been told it won't be accepted because the dealer doesn't make much money on the car. I understand that on a car in demand it doesn't make sense to offer discounts that cut into their profit... But how exactly does it work? I thought I read somewhere that their invoice is reduced because of the supplier price, and then they sell the vehicle at the supplier price which is lower than MSRP. Is this correct? If it is, I'd gladly pay the difference in the profit margin they are losing from MSRP to supplier, as the price to me would be reduced without cutting into their profit. Win-win, right? __________________ *2SS/RS LS3 CGM/Black* 2G1FT1EW3A9113560 1000, Dealer Order (4.06.09) 1100, Preliminary order accepted (04.09.09) 2000, Order accepted by GM (4.16.09) 3000, Order accepted by production control (4.21.09) 3100, Order available to sequence (5.14.09) 3300, Order scheduled for production (5.14.09) 3400, Order broadcast (5.21.09) 3800, Order produced (5.29.09) 4000, Available to ship (5.29.09) 4200, Shipped (5.29.09) 4800, Rail Ramp Unload (5.30.09) 5000, Delivered to the dealer (6.10.09) 6000, Delivered to the customer (6.11.09)

04-20-2009, 01:29 PM	#3
beausbriggs 2G1FT1EW3A9113560 Drives: 2010 Camaro SS/RS Join Date: Mar 2009 Location: DC Area Posts: 169	Right, I understand that... But say GM then refunds $500 of a $1000 loss in profit (because of supplier pricing), I'd be willing to pay the extra $500 so they are made whole, while my price still remains below MSRP. Dealer wins, I win, GM honors the supplier pricing... every one is happy, right? __________________ *2SS/RS LS3 CGM/Black* 2G1FT1EW3A9113560 1000, Dealer Order (4.06.09) 1100, Preliminary order accepted (04.09.09) 2000, Order accepted by GM (4.16.09) 3000, Order accepted by production control (4.21.09) 3100, Order available to sequence (5.14.09) 3300, Order scheduled for production (5.14.09) 3400, Order broadcast (5.21.09) 3800, Order produced (5.29.09) 4000, Available to ship (5.29.09) 4200, Shipped (5.29.09) 4800, Rail Ramp Unload (5.30.09) 5000, Delivered to the dealer (6.10.09) 6000, Delivered to the customer (6.11.09)

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