07-27-2023 06:05 PM
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
07-31-2023 11:44 AM
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)