Old Jan 21, 2010 | 12:52 PM
  #21  
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by Carter
Why in the fuck would the dealer lower his rates on parts and labor when what they're doing right now is making most of them plenty of money? There is no incentive. Even if they did lower prices to attract more business, it would take a lot of advertising for penny pinchers to even think about going to a dealer. I know that's the last place I will ever go.
Again I'm only talking about customer pay business. If I felt I was getting a fair deal from a dealer I'd much rather take car there. I know their technicians are trained on my specific vehicle and they have all the needed tools to perform the work. I would even be willing to pay a little more for the work. But not 100% more.

In my example in the first post... if I was in a jamb and couldn't do the pump myself I'd pay a dealer $500 to do the work... eventhough I know they're making $150+ on the part and charging me an extra hour for labor. But @ $990 you just have to laugh and walk away.