Financing Dealer fees

[HBromberg]

Hello,

What is the general concensus for handling financing dealer fees?  We are thinking about adding 1 or 2% to all pricing to cover those that finance.  We would limit our options for what financing we would provide and try to cap the dealer fee around 5%.  I know you cant charge the customer more once they are quoted a price if they decide to go with financing.

Thoughts?

Thanks

Howard

[sjaeger]

That's what we did.  We actually added 0.5% to the cost across the board to cover dealer fees.  If you separate out the dealer fees in your P&L (in your accounting software) you will see what % they are to your overall revenue.  We currently run 0.3% (We are residential plumbing only.  I know HVAC will run higher)