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