How the Other Half Thinks - Tire Review Magazine

How the Other Half Thinks

Got an e-mail the other day from a guy who proffers his expertise to car dealers.

It’s a bit of an eye-opener from the standpoint of how car dealers either think or are being told how to think:

If I Could Save You Time And Money, Could I Earn Your Business?  

As a service consultant and trainer, one of the most challenging issues I face weekly is the need to convince employees of the fact that their dealership service department is the best place for customers to do business. Too often they view their dealerships as some “higher-priced-than-everyone-else-place,” which service customers have to visit until the warranty runs out. Amazingly, I see it every week in all areas of the country. To prove that using the dealership service department is a great value to customers, I perform a simple exercise with my clients.

First, we calculate what it costs to maintain a vehicle at the dealership for one year or 15,000 miles. The maintenance log in manufacturers’ vehicles will typically list 5,000 intervals for required services to maintain full warranty coverage. The first two services list an oil and filter replacement, a tire rotation, and a multi-point inspection, costing the customer some $60 or $120 for the first 10,000 miles. The 15K service, which usually includes the previously mentioned services, plus an air filter and a few more inspections, costs approximately $130. So, for the total of the three services the customer has paid some $190 for 15,000 miles of driving.

The other choices…
Next we shop the competition by conducting phone calls to check the pricing on the aforementioned maintenance items. We survey a quick oil change franchise, an independent garage, Firestone/Gemini/Meineke franchises, and even another dealership. These companies advise the customer to visit every 3,000 miles for oil changes, with a tire rotation at 6,000 miles. Consequently, the customer purchases five oil changes at $30 each, two rotations at $20 each, and an air filter for $40 – for a total of $230 – hardly a better deal for the customer or the vehicle.

Besides saving $40 by using the dealership, customers save time and gas by making two less trips for service! Using dealer service provides the customer with the best deal and a guarantee of the appropriate parts and lubricants for their vehicle, as well as factory-trained technicians.

Who Knew?
How many dealer employees realize that using their own dealership provides the service customer with a better deal? A smart dealer, general manager, and service manager should educate all their employees about the value of dealer service pricing. Employees who know the facts will help ensure customers receive a positive message.

If you want a copy of a service drive poster that I use to emphasize these important facts, email me at: [email protected]. This e-mail address is being protected from spambots. You need JavaScript enabled to view it. I will send you a copy at no charge.

If you have comments to share, send to me at [email protected].

– Jim Smith

You May Also Like

TBC Corp. employee children enjoy ‘Take Your Child to Work Day’

The kids had a jam-packed day learning about tires, and even ate lunch with the company’s new CEO, Don Byrd.

TBC-Bring-Kids-to-Work-Day-CEO-1400

At one of its South Florida NTW distribution centers, as well as TBC Corp.'s Palm Beach Gardens corporate offices, TBC employees recently had the opportunity to show their children the ins and outs of the company's role in the tire industry during "Take Your Child to Work Day." The kids had a jam-packed day learning about tires, taking photos, doing media research, and even eating lunch with the company's new CEO, Don Byrd.

Mitas, Trelleborg to increase prices globally

The companies said this decision is a response to significant inflation.

BKT celebrates International Day of Sport for Development and Peace

BKT said it has made an effort to show a commitment to supporting sports through multiple initiatives, partnerships and sponsorships.

BKT-sports-sponsorships
Bridgestone invests in Yoshi Mobility to expand into virtual inspection, EV charging

Yoshi is also commercializing its mobile EV charging platform to address EV fleet charging challenges.

Yoshi-Mobility-EV-charging
The commercial tire market is cautiously recovering from 2023 challenges

To better understand commercial tire expectations for the remainder of the year, Tire Review recently sat down with Pierluigi Cumo, VP of B2B products at Michelin North America.

Michelin-Commercial-Truck-Tires-1400

Other Posts

SRNA introduces new field engineer manager

Chariarse has extensive experience in his field, working as a commercial truck field engineer in the tire industry for the past 21 years.

SRNA-Eduardo-Chariarse
Bridgestone to debut Bandag Virtual World Tour at WasteExpo 2024

The Bandag Virtual Plant Tour is an internet browser-based experience that provides a step-by-step walkthrough of Bandag’s retreading process.

Bandag-virtual-tour-Bridgestone
Giti Tire Manufacturing awarded by Chester County Chamber of Commerce

Giti Tire said it has been a supporter of education, organized farmer’s markets and participated in community food drives.

Giti-Chamber-Award
Is the future of TPMS technology blue(tooth)?

TPMS hasn’t changed much since it was mandated in 2007, but Bluetooth sensors could be a welcome update for drivers and shops.

Bluetooth-TPMS-1400