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Originally Posted by BrianL99
Attached is a reasonable synopsis of how "Auto Buying Services" work.
You need to read between the lines. While the "Buying Clubs" will all tell you they have an "arrangement" with specific dealers. That's not exactly true and the arrangements are no where near as specific as the clubs will lead you to believe.
The "arrangement" the dealers make, always have the caveat "subject to availability". This gives the Dealer the ability to vary from any supposed fixed price "guaranty" they promote, based on their interpretation of the availability of a particular model.
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This description is how a GPO, Group Purchasing Organization, works.
I have worked with commercial ones which buyers pay a certain discount, and then the GPO collects a percentage based upon the total dollar volume of their member purchases.
And yes, I was involved due to a federal lawsuit against us, as we did not provide accurate information and payment to the GPO for their fees, and i was tasked to validate /document /calculate the correct fees owed. We under reported by $50M in fees which was a sales rep using an old report, and customer addresses not being accurately matched to the GPO customer listing.
matching addresses on several 100,000+ customers between systems is tedious and time consuming, and only the exceptions were done manually. . . spelling and accuracy does become an issue.