Dealer Accessory Ordering Options

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Class Was Created Specifically For GM ADI TSMs The Subject Of This Tutorial is: “Dealer Accessory Ordering Options” Premiere Testing Dynamics

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Dealer Accessory Ordering Options GM Accessories has been one of
GM’s largest growing divisions over the past nine years. In fact, sales have grown from around $400 million to over $800 million in that time. This growth is attributable to many new processes introduced by ADIs to GM dealerships and their Sales, Parts, Service and other department’s personnel.

GM’s largest growing divisions over the past nine years. In fact, sales have grown from around $400 million to over $800 million in that time. This growth is attributable to many new processes introduced by ADIs to GM dealerships and their Sales, Parts, Service and other department’s personnel. GM and it’s ADI network have worked to introduce various types of practices and processes that make this type of growth possible, including selling processes, pre-loading of vehicles, commission plans for dealership sales people, installation of accessories and the ordering of accessories.

GM’s largest growing divisions over the past nine years. In fact, sales have grown from around $400 million to over $800 million in that time. This growth is attributable to many new processes introduced by ADIs to GM dealerships and their Sales, Parts, Service and other department’s personnel. GM and it’s ADI network have worked to introduce various types of practices and processes that make this type of growth possible, including selling processes, pre-loading of vehicles, commission plans for dealership sales people, installation of accessories and the ordering of accessories. In this tutorial, we will focus on the process of Dealer Accessory Ordering and the options they have available to them.

Dealer Accessory Ordering Options When a dealer wants to order
GM accessories, they have four ordering types to choose from, including:

GM accessories, they have four ordering types to choose from, including: 1. RPO

GM accessories, they have four ordering types to choose from, including: 1. RPO 2. LPO

GM accessories, they have four ordering types to choose from, including: 1. RPO 2. LPO 3. ADI to Dealer (A2D)

GM accessories, they have four ordering types to choose from, including: 1. RPO 2. LPO 3. ADI to Dealer (A2D) 4. Direct from GM (ACO)

GM accessories, they have four ordering types to choose from, including: 1. RPO 2. LPO 3. ADI to Dealer (A2D) 4. Direct from GM (ACO) All of these options will be explained later in this tutorial.

GM accessories, they have four ordering types to choose from, including: 1. RPO 2. LPO 3. ADI to Dealer (A2D) 4. Direct from GM (ACO) All of these options will be explained later in this tutorial. It is important to remember that a dealership will order accessories using one of these methods based upon the reason they want to order.

Dealer Accessory Ordering Options Dealerships order accessories for a variety
of reasons and place their order in a manner based upon the reason they want or need the accessory. Some of these reasons include:

of reasons and place their order in a manner based upon the reason they want or need the accessory. Some of these reasons include: 1. They want the accessories installed at the factory and to appear on the Monroney label.

of reasons and place their order in a manner based upon the reason they want or need the accessory. Some of these reasons include: 1. They want the accessories installed at the factory and to appear on the Monroney label. 2. They want the accessories to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label.

of reasons and place their order in a manner based upon the reason they want or need the accessory. Some of these reasons include: 1. They want the accessories installed at the factory and to appear on the Monroney label. 2. They want the accessories to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label. 3. They want the accessories readily available for sale in their Parts Department.

of reasons and place their order in a manner based upon the reason they want or need the accessory. Some of these reasons include: 1. They want the accessories installed at the factory and to appear on the Monroney label. 2. They want the accessories to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label. 3. They want the accessories readily available for sale in their Parts Department. 4. They want accessories for a specific customer at the time of the vehicle sale that may not be in inventory in the Parts Department.

of reasons and place their order in a manner based upon the reason they want or need the accessory. Some of these reasons include: 1. They want the accessories installed at the factory and to appear on the Monroney label. 2. They want the accessories to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label. 3. They want the accessories readily available for sale in their Parts Department. 4. They want accessories for a specific customer at the time of the vehicle sale that may not be in inventory in the Parts Department. 5. They want accessories installed after the vehicle arrives and prior to positioning the vehicle in the showroom or on the lot with an addendum sticker highlighting the installed accessories.

Dealer Accessory Ordering Options Let’s take a closer look at
the reasons dealerships order accessories .

Dealer Accessory Ordering Options Reason #1 - Order the vehicle
with accessories built with the vehicle at the factory and appear on the Monroney label.

with accessories built with the vehicle at the factory and appear on the Monroney label. When a dealership orders a new vehicle to be built by GM, they have the option to have accessories added to that vehicle at the factory. When they place this order, it is known as a RPO.

with accessories built with the vehicle at the factory and appear on the Monroney label. When a dealership orders a new vehicle to be built by GM, they have the option to have accessories added to that vehicle at the factory. When they place this order, it is known as a RPO. RPO stands for Regular Production Option. There are a limited number of accessories that can be ordered as a RPO, but that list can change based upon demand for a particular accessory.

with accessories built with the vehicle at the factory and appear on the Monroney label. When a dealership orders a new vehicle to be built by GM, they have the option to have accessories added to that vehicle at the factory. When they place this order, it is known as a RPO. RPO stands for Regular Production Option. There are a limited number of accessories that can be ordered as a RPO, but that list can change based upon demand for a particular accessory. Every RPO has a RPO code and dealerships order the accessory by selecting that code.

Dealer Accessory Ordering Options Reason #2 - Order the accessories
to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label.

to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label. When a dealership orders a new vehicle to be built by GM, they have the option to have accessories added to that vehicle at the dealership. When they place this order, it is known as a LPO. A technician at the dealership will install the accessories and GM will pay the dealership for the labor to install the accessories. The amount that GM pays is based on the dealership’s warranty rate.

to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label. When a dealership orders a new vehicle to be built by GM, they have the option to have accessories added to that vehicle at the dealership. When they place this order, it is known as a LPO. A technician at the dealership will install the accessories and GM will pay the dealership for the labor to install the accessories. The amount that GM pays is based on the dealership’s warranty rate. LPO stands for Limited Production Option. There are many options with LPOs. Some accessories are bundled together forming a LPO package and other LPOs are single accessories.

to be installed on the vehicle at the dealership, earn the install labor payment from GM and have the accessory appear on the Monroney label. When a dealership orders a new vehicle to be built by GM, they have the option to have accessories added to that vehicle at the dealership. When they place this order, it is known as a LPO. A technician at the dealership will install the accessories and GM will pay the dealership for the labor to install the accessories. The amount that GM pays is based on the dealership’s warranty rate. LPO stands for Limited Production Option. There are many options with LPOs. Some accessories are bundled together forming a LPO package and other LPOs are single accessories. Similar to RPOs, dealerships order the accessories by selecting indivdual LPO codes.

Dealer Accessory Ordering Options The ADI is responsible for delivering
the accessory to the dealership. Prior to delivery, ADIs place an orange sticker on each accessory ordered as an LPO. By doing so, dealerships can easily identify:

the accessory to the dealership. Prior to delivery, ADIs place an orange sticker on each accessory ordered as an LPO. By doing so, dealerships can easily identify: 1. The part number of accessory

the accessory to the dealership. Prior to delivery, ADIs place an orange sticker on each accessory ordered as an LPO. By doing so, dealerships can easily identify: 1. The part number of accessory 2. The VIN (vehicle identification number) of the vehicle

the accessory to the dealership. Prior to delivery, ADIs place an orange sticker on each accessory ordered as an LPO. By doing so, dealerships can easily identify: 1. The part number of accessory 2. The VIN (vehicle identification number) of the vehicle 3. The dealership’s name and BAC (dealership identifier)

the accessory to the dealership. Prior to delivery, ADIs place an orange sticker on each accessory ordered as an LPO. By doing so, dealerships can easily identify: 1. The part number of accessory 2. The VIN (vehicle identification number) of the vehicle 3. The dealership’s name and BAC (dealership identifier) 4. Bar code scan representing the GM part number

the accessory to the dealership. Prior to delivery, ADIs place an orange sticker on each accessory ordered as an LPO. By doing so, dealerships can easily identify: 1. The part number of accessory 2. The VIN (vehicle identification number) of the vehicle 3. The dealership’s name and BAC (dealership identifier) 4. Bar code scan representing the GM part number 5. The date of the delivery

the accessory to the dealership. Prior to delivery, ADIs place an orange sticker on each accessory ordered as an LPO. By doing so, dealerships can easily identify: 1. The part number of accessory 2. The VIN (vehicle identification number) of the vehicle 3. The dealership’s name and BAC (dealership identifier) 4. Bar code scan representing the GM part number 5. The date of the delivery 6. The name of the accessory

Dealer Accessory Ordering Options When a dealership orders a LPO,
the following process occurs:

the following process occurs: Dealership orders a vehicle from GM and includes a LPO

the following process occurs: Dealership orders a vehicle from GM and includes a LPO The vehicle is built and a Monroney sticker is applied to the window. The sticker includes the accessory ordered as a LPO

the following process occurs: Dealership orders a vehicle from GM and includes a LPO The vehicle is built and a Monroney sticker is applied to the window. The sticker includes the accessory ordered as a LPO When the vehicle exits the assembly line, the ADI is sent a notification to deliver the accessory to the dealership

the following process occurs: Dealership orders a vehicle from GM and includes a LPO The vehicle is built and a Monroney sticker is applied to the window. The sticker includes the accessory ordered as a LPO When the vehicle exits the assembly line, the ADI is sent a notification to deliver the accessory to the dealership When the vehicle arrives, the dealership’s Service Dept. preps the vehicle, including installing the accessory

the following process occurs: Dealership orders a vehicle from GM and includes a LPO The vehicle is built and a Monroney sticker is applied to the window. The sticker includes the accessory ordered as a LPO When the vehicle exits the assembly line, the ADI is sent a notification to deliver the accessory to the dealership When the vehicle arrives, the dealership’s Service Dept. preps the vehicle, including installing the accessory When the accessory installation is complete, the dealership files a labor warranty claim to be paid by GM for the installation

the following process occurs: Dealership orders a vehicle from GM and includes a LPO The vehicle is built and a Monroney sticker is applied to the window. The sticker includes the accessory ordered as a LPO When the vehicle exits the assembly line, the ADI is sent a notification to deliver the accessory to the dealership When the vehicle arrives, the dealership’s Service Dept. preps the vehicle, including installing the accessory When the accessory installation is complete, the dealership files a labor warranty claim to be paid by GM for the installation The dealership is reimbursed by GM at the GM established labor time for that accessory x the dealership’s warranty labor rate

the following process occurs: Dealership orders a vehicle from GM and includes a LPO The vehicle is built and a Monroney sticker is applied to the window. The sticker includes the accessory ordered as a LPO When the vehicle exits the assembly line, the ADI is sent a notification to deliver the accessory to the dealership When the vehicle arrives, the dealership’s Service Dept. preps the vehicle, including installing the accessory When the accessory installation is complete, the dealership files a labor warranty claim to be paid by GM for the installation The dealership is reimbursed by GM at the GM established labor time for that accessory x the dealership’s warranty labor rate The vehicle is placed on the showroom floor or the dealership lot and is ready for sale.

for stock in their Parts Department.

for stock in their Parts Department. Parts Departments track their daily sales of parts and accessories. They do this so that for high volume selling items, they can keep those accessories in stock for spot deliveries.

for stock in their Parts Department. Parts Departments track their daily sales of parts and accessories. They do this so that for high volume selling items, they can keep those accessories in stock for spot deliveries. A spot delivery is when a customer purchases a vehicle and takes it home that day. If the customer also purchased an accessory for that vehicle, they will want the accessory installed prior to taking the vehicle home. Ideally, the Parts Department has the accessory in stock and ready for install.

for stock in their Parts Department. Parts Departments track their daily sales of parts and accessories. They do this so that for high volume selling items, they can keep those accessories in stock for spot deliveries. A spot delivery is when a customer purchases a vehicle and takes it home that day. If the customer also purchased an accessory for that vehicle, they will want the accessory installed prior to taking the vehicle home. Ideally, the Parts Department has the accessory in stock and ready for install. They may also sell these popular accessories over the Parts counter or through the dealership’s Service Department.

Dealer Accessory Ordering Options Reason #4 - Order accessories for
a specific customer at the time of the vehicle sale.

a specific customer at the time of the vehicle sale. Dealerships who sell accessories to a customer who is purchasing a vehicle (or over the Parts counter or through the service lane) often need to order an accessory that their customer wants, but that they do not stock in their Parts Department. The dealership would order this accessory from their ADI* through one of the following methods:

a specific customer at the time of the vehicle sale. Dealerships who sell accessories to a customer who is purchasing a vehicle (or over the Parts counter or through the service lane) often need to order an accessory that their customer wants, but that they do not stock in their Parts Department. The dealership would order this accessory from their ADI* through one of the following methods: 1. Phone the order in

a specific customer at the time of the vehicle sale. Dealerships who sell accessories to a customer who is purchasing a vehicle (or over the Parts counter or through the service lane) often need to order an accessory that their customer wants, but that they do not stock in their Parts Department. The dealership would order this accessory from their ADI* through one of the following methods: 1. Phone the order in 2. Fax the order

a specific customer at the time of the vehicle sale. Dealerships who sell accessories to a customer who is purchasing a vehicle (or over the Parts counter or through the service lane) often need to order an accessory that their customer wants, but that they do not stock in their Parts Department. The dealership would order this accessory from their ADI* through one of the following methods: 1. Phone the order in 2. Fax the order 3. Order online through GM’s Accessories Digital Solutions system

a specific customer at the time of the vehicle sale. Dealerships who sell accessories to a customer who is purchasing a vehicle (or over the Parts counter or through the service lane) often need to order an accessory that their customer wants, but that they do not stock in their Parts Department. The dealership would order this accessory from their ADI* through one of the following methods: 1. Phone the order in 2. Fax the order 3. Order online through GM’s Accessories Digital Solutions system 4. Place their order with their ADI TSM

a specific customer at the time of the vehicle sale. Dealerships who sell accessories to a customer who is purchasing a vehicle (or over the Parts counter or through the service lane) often need to order an accessory that their customer wants, but that they do not stock in their Parts Department. The dealership would order this accessory from their ADI* through one of the following methods: 1. Phone the order in 2. Fax the order 3. Order online through GM’s Accessories Digital Solutions system 4. Place their order with their ADI TSM *Dealerships can order any accessory direct from GM, but it generally takes longer and some accessories have minimum order quantities.

Dealer Accessory Ordering Options Reason #5 - Order accessories after
the vehicle arrives and install prior to positioning the vehicle in the showroom or on the lot with an addendum sticker.

the vehicle arrives and install prior to positioning the vehicle in the showroom or on the lot with an addendum sticker. While the ordering of accessories for showroom or lot vehicles can be done as an RPO or LPO, some dealerships choose to “pre-load” a vehicle after the vehicle arrives at the dealership. Pre-load is when a dealership installs accessories to a vehicle to be displayed in a showroom or on the dealership’s lot.

the vehicle arrives and install prior to positioning the vehicle in the showroom or on the lot with an addendum sticker. While the ordering of accessories for showroom or lot vehicles can be done as an RPO or LPO, some dealerships choose to “pre-load” a vehicle after the vehicle arrives at the dealership. Pre-load is when a dealership installs accessories to a vehicle to be displayed in a showroom or on the dealership’s lot. By doing so, they can:

the vehicle arrives and install prior to positioning the vehicle in the showroom or on the lot with an addendum sticker. While the ordering of accessories for showroom or lot vehicles can be done as an RPO or LPO, some dealerships choose to “pre-load” a vehicle after the vehicle arrives at the dealership. Pre-load is when a dealership installs accessories to a vehicle to be displayed in a showroom or on the dealership’s lot. By doing so, they can: 1. Measure how many of their vehicles are accessorized and how many are not.

the vehicle arrives and install prior to positioning the vehicle in the showroom or on the lot with an addendum sticker. While the ordering of accessories for showroom or lot vehicles can be done as an RPO or LPO, some dealerships choose to “pre-load” a vehicle after the vehicle arrives at the dealership. Pre-load is when a dealership installs accessories to a vehicle to be displayed in a showroom or on the dealership’s lot. By doing so, they can: 1. Measure how many of their vehicles are accessorized and how many are not. 2. Install accessories that may not have been available as an RPO or LPO.

the vehicle arrives and install prior to positioning the vehicle in the showroom or on the lot with an addendum sticker. While the ordering of accessories for showroom or lot vehicles can be done as an RPO or LPO, some dealerships choose to “pre-load” a vehicle after the vehicle arrives at the dealership. Pre-load is when a dealership installs accessories to a vehicle to be displayed in a showroom or on the dealership’s lot. By doing so, they can: 1. Measure how many of their vehicles are accessorized and how many are not. 2. Install accessories that may not have been available as an RPO or LPO. 3. Maximize profit* installing the accessories as a “pre-load” vehicle after it arrives at the dealership.

the vehicle arrives and install prior to positioning the vehicle in the showroom or on the lot with an addendum sticker. While the ordering of accessories for showroom or lot vehicles can be done as an RPO or LPO, some dealerships choose to “pre-load” a vehicle after the vehicle arrives at the dealership. Pre-load is when a dealership installs accessories to a vehicle to be displayed in a showroom or on the dealership’s lot. By doing so, they can: 1. Measure how many of their vehicles are accessorized and how many are not. 2. Install accessories that may not have been available as an RPO or LPO. 3. Maximize profit* installing the accessories as a “pre-load” vehicle after it arrives at the dealership. * The profitability of ordering accessories is discussed next in this tutorial.

Dealer Accessory Ordering Options Profit begins with the ordering of
accessories

Dealer Accessory Ordering Options Much of the dealership’s profitability in
accessories is based upon how they order. There are three different profit margins when ordering accessories that dealerships should consider when deciding how they will order their accessories:

accessories is based upon how they order. There are three different profit margins when ordering accessories that dealerships should consider when deciding how they will order their accessories: 1. Dealers that order a RPO will earn approximately 13.6% on those accessories.

accessories is based upon how they order. There are three different profit margins when ordering accessories that dealerships should consider when deciding how they will order their accessories: 1. Dealers that order a RPO will earn approximately 13.6% on those accessories. 2. Dealers that order a LPO will earn approximately 13.6% and an install fee, paid by GM, for installing the accessory.

accessories is based upon how they order. There are three different profit margins when ordering accessories that dealerships should consider when deciding how they will order their accessories: 1. Dealers that order a RPO will earn approximately 13.6% on those accessories. 2. Dealers that order a LPO will earn approximately 13.6% and an install fee, paid by GM, for installing the accessory. 3. Dealers that order direct from their ADI or GM (for stock, pre-load or for a customer) and install the accessory will earn 25% on those accessories when sold at MSRP and additionally, the labor charge to install them.

accessories is based upon how they order. There are three different profit margins when ordering accessories that dealerships should consider when deciding how they will order their accessories: 1. Dealers that order a RPO will earn approximately 13.6% on those accessories. 2. Dealers that order a LPO will earn approximately 13.6% and an install fee, paid by GM, for installing the accessory. 3. Dealers that order direct from their ADI or GM (for stock, pre-load or for a customer) and install the accessory will earn 25% on those accessories when sold at MSRP and additionally, the labor charge to install them. A TSM should always bring attention to these differences when discussing ordering options with a dealership.

Dealer Accessory Ordering Options

Dealer Accessory Ordering Options Though there can be a wide
difference in the profit margins of varying ordering options, there are reasons for each one: 1. RPO – A dealership earns approximately 13.6%. However, they do not have to involve themselves in the installation of the accessory and the accessory appears on the Monroney label. By appearing on the Monroney label, the accessory can be financed with the vehicle.

difference in the profit margins of varying ordering options, there are reasons for each one: 2. LPO – While the profit margin is the same as an RPO, along with also appearing on the Monroney label and financing the accessory with the vehicle, the dealership earns the labor charge for installing the accessory. GM pays the dealership for the installation using the formula: “GM Install Time for that accessory x Dealership Warranty Labor Rate” = Labor Charge

difference in the profit margins of varying ordering options, there are reasons for each one:

difference in the profit margins of varying ordering options, there are reasons for each one: 3. ADI to Dealer or ACO – Either of these options are a method for a dealership to order accessories for Parts Department stock, for pre-loading or for a specific customer’s needs. Charging MSRP for the accessory, dealerships will earn a 25% margin. Plus, they will be able to charge for the installation of the accessories.

difference in the profit margins of varying ordering options, there are reasons for each one: 3. ADI to Dealer or ACO – Either of these options are a method for a dealership to order accessories for Parts Department stock, for pre-loading or for a specific customer’s needs. Charging MSRP for the accessory, dealerships will earn a 25% margin. Plus, they will be able to charge for the installation of the accessories. Additionally, if the dealership is pre-loading, the accessories will not appear on the Monroney and dealership will utilize an addendum to show the accessories and their prices.

Dealer Accessory Ordering Options SUMMARY

Dealer Accessory Ordering Options SUMMARY As a TSM, your job
is to help your dealerships build, or enhance, their GM Accessory selling process. One of your first steps is to ensure that your dealership understands their options when ordering accessories and providing guidance on the most profitable way to do so.

Dealer Accessory Ordering Options SUMMARY As a TSM, your job
is to help your dealerships build, or enhance, their GM Accessory selling process. One of your first steps is to ensure that your dealership understands their options when ordering accessories and providing guidance on the most profitable way to do so. With this tutorial, you should now feel confident to discuss the four ordering types of: RPO, LPO, A2D and ACO, along with the reasons that a dealership would use each one. You should also understand the profit opportunity associated with each order type.

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Dealer Accessory Ordering Options

Dealer Accessory Ordering Options

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