DirecTV Issues - D-Tools Forum

AE Engineer · 11-13-2009, 03:10 PM

We are DirecTV dealers as I am sure most of you are. With all of the rebates for the free install and equipment, how does the database get set up so that we do not show the customer too much info, but all of our reports are correct. I cannot seem to get the info entered correctly so that I do not have negative markups and a profit report that is accurate. Here is an example:

HR21/22/23 HD DVR - $150 cost
- $199 retail
- $250 rebate from DirecTV to install
- $199 of the rebate should go to the customer for
a free receiver (1st receiver)
The rebate seems to kill me on my profitability and I cannot figure out how to enter this in a way that shows a free box to the customer AND some sort of profitability.

**Dave Kirn** · 11-13-2009, 04:44 PM

Trying to wrap my head around this to give you an answer. One question of the $250 that you get from DirecTV you said that $199 goes to cover the cost of the receiver - what is the other $51 for?

AE Engineer · 11-13-2009, 04:57 PM

it is supposed to cover labor to install.....however we sort of look at it as profit.

DirecTV looks at it as money to cover my labor expenses.

**Kevin Mikelonis** · 11-13-2009, 05:23 PM

If you have followed our past posting recommendations about how to handle discounts, you may already have a Phase called 'Discounts' and a Category Called 'Discounts'.

This issue can leverage our documented discounting practice to deal with Rebates too.

See this thread for our discounting methodology.

Discounts?

Now, there are 2 issues to accommodate here;

1. Extending a discount to the customer.

2. Adding the DTV rebate back into the project costs to offset the labor.

++++++++++++++++++++++++++++++++++++++++++++++++++ +++++

To handle the equipment discount, create an item in your database called:

CATEGORY = DISCOUNTS

MFG = DIRECTV-DNO (universal in our databases for 'Do Not Order') do this so this item is not pushed into your accounting

MODEL = FREE RECEIVER PROMOTION

PHASE = DISCOUNTS

COST = $0

PRICE = -$199

To handle the DTV rebate, create a new CATEGORY called REBATES and set its type as Labor.

Create a new PHASE called REBATES

Then create a new item in your database called:

CATEGORY = REBATES

MFG = DIRECTV

MODEL = INSTALLATION REBATE

PHASE = REBATES

COST = -$250

PRICE = $0

+++++++++++++++++++++++++++++++++++++++

If you follow our recommended best practice of not showing labor items in your proposals, this rebate will not show-up in the proposal, while the Free Receiver Discount will show-up.

If you do not show line item pricing, follow our documented Discounting practice to create a separate AREA or ZONE in the project to isolate the discount in the proposal so it's negative number shows up in the proposal.

While I have not set this up and tested it, I expect that you will find the back office reporting will be very discernable.

Best-

**Dave Kirn** · 11-13-2009, 10:39 PM

Yeah - what he said

Looks like Kevin beat me to that. I wish I had something to add to that, but he covered it all

AE Engineer · 11-18-2009, 02:04 PM

Kevin,

While you know that my database is exactly how you do yours (since we worked together on it and I bought into your way of thinking!!!) That is the first thing I tried when I attempted to wrap my head around this issue. The problem I have is that doing it that way shows that I lose money on the job. the HR-21 reciever has a cost of $150 - retail $199. When I add the DNO item for $199, I show that I lose $150 per reciever!!! I know that this is not correct. Add that up along with the fact that the rebate for the dish is in their as well and I come up with ($700) on a three reciever install. But my actual accounting in QuickBooks shows me that I made about $150 on the job. THat is almost a $900 difference. I would not call that discernable. The only way I can see it working is to show that the receivers and dish have $0 costs and then their respective retail prices. That way, when I add in the rebates from DirecTV, I get a $0 profit line, and I would only take a loss in D-Tools on the labor associated with each item.( as I would need to zero out the labor to keep the install at $0 to the customer. I need the hours tracked, so I cannot just delete the labor.). Is this really that complicated? Or am I just thinking to hard? My brain hurts!!!