Old Jan 22, 2010 | 03:30 AM
  #46  
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JROW
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by benflagg
I am curious to see what if any reasons there is for the lack of competition. What Im saying is you would think in a free market that there would be more people than just ourselves seeing the opportunity to step in and undercut the dealer, thus making a profit and gaining share of the market. Then again, looking at what I said that is exactly what independent garages do. I think that many consumers do not educate themselves about their vehicle leaving themselves vulnerable to being taken advantage of by the service rep or dealer as whole. Basically the ignorance of many consumers ensures that there is not enough pressure applied to the market in order to force the price of parts and service lower.
There are so many ways to buy parts/service outside of dealerships. It's not consumer ignorance, it's service. Many people want to take their car to a trusted, safe, knowledgeable place that specifies in their type of car. They know they will pay more, and they are okay with that as long as they are treated right and their car is as well. You can get a double cheeseburger at mcdonalds for a buck, but if you can afford it, I'm sure you'd rather go to a real restaurant and be served a real burger for a few dollars more.