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Dealer service dept. revenues increase if they had reasonable prices?

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Old Jan 22, 2010 | 06:13 AM
  #71  
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Automotive industry, is a business like anything else. By charging people parts at cost and doing labor for free, technicians wouldn't be able to survive or there would be no tech's around anymore. When you also pay for labor, you get a no-hassle warranty. If something goes wrong, you come back. Tell me your backyard mechanic who saved you xxx amount of dollars is gonna be like "Sure, bring it by right now and I'll get you squared away".

You have to remember, your paying for a service. Not just labor. But I look at it this way, if you can do it yourself and have the time. Do it. I have never once paid anyone to work on my own stuff, except a tech at my shop 20$ to do my rear brake shoes back in the day since I despise doing them.


One more thing, you don't bitch about going to KFC and buying something you could go to Farm Fresh and by for 89 cents and cook your self but in return your paying $8 to a business.
Old Jan 22, 2010 | 06:15 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by Cobra4B
Here's something to add... I've never had a problem with any car that I couldn't diagnose and fix myself by simply searching various car forums. Maybe I'm lucky that GM cars don't need any fancy tools to work on, but typically is something comes up you can find a thread on it and a full how-to on fixing it on corvetteforum.com or coloradofans.com.

Again... maybe GMs are just easy when it comes to that.
I think the biggest problem you're having, is you are thinking about yourself and your situation. Think more broad. How many mothers/fathers and working class people have time to sit on the computer and then fiddle with their cars when they need them fixed and have to drive them everyday? Not to mention, most people in the general public don't know, or give a shit about the first thing to do with the mechanics of cars. Most people would rather pay to have their cars fixed as soon as possible, and correctly, with factory parts and a warranty. It's also nice when there are loaner car programs and courtesy rides/shuttles. You're not looking at the big picture brian.
Old Jan 22, 2010 | 06:27 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by HatefulMechanic



but seriously, they go with inground lifts? mother fuck that was a good amount of cheddar if they werent though.
Nope. All above ground being the dealership is about 20 years old and that is how it was already laid out.


I think the issue is some do not see the overall big picture, but merely what affects them in their situation and that is fine. However, the general public are not always the case. I have quite a few customers that can do their own work and service and that is great. I also have a ton more that can't and are too busy working that they prefer to bring it to us and pay us to do the service. If they did it themselves, it would be too much an inconvenience.

Last edited by Woodrow; Jan 22, 2010 at 06:30 AM.
Old Jan 22, 2010 | 06:27 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by JROW
I think the biggest problem you're having, is you are thinking about yourself and your situation. Think more broad. How many mothers/fathers and working class people have time to sit on the computer and then fiddle with their cars when they need them fixed and have to drive them everyday? Not to mention, most people in the general public don't know, or give a shit about the first thing to do with the mechanics of cars. Most people would rather pay to have their cars fixed as soon as possible, and correctly, with factory parts and a warranty. It's also nice when there are loaner car programs and courtesy rides/shuttles. You're not looking at the big picture brian.
We're not communicating effectively... must be because you bought a Camaro are now on a lower level I 100% agree with everything you've said in this post.

My question is simply from a "business study" perspective... could a dealer increase revenues by doing a few things different. I could be wrong, but who knows. You'd think that if they could they would... simple as that.

When it comes to my statement about not finding a problem I couldn't fix I guess I was more trying to think of something that could happen that would stump me to the point of needing an expert diagnostician.

I guess when something like a cam position sensor failed it'd be tricky to diagnose, but GMs error codes are pretty accurate/descriptive.
Old Jan 22, 2010 | 06:29 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by Cobra4B
We're not communicating effectively... must be because you bought a Camaro are now on a lower level I 100% agree with everything you've said in this post.
Hate you. hahahahahaha Well, I am starting a service manager job feb 3rd which is much higher pay so with any luck I will have the bike paid off and I can sell you my camaro in a few months so you can have a sweet beater and I can buy another vette
Old Jan 22, 2010 | 06:46 AM
  #76  
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by Cobra4B
We're not communicating effectively... must be because you bought a Camaro are now on a lower level I 100% agree with everything you've said in this post.

My question is simply from a "business study" perspective... could a dealer increase revenues by doing a few things different. I could be wrong, but who knows. You'd think that if they could they would... simple as that.

When it comes to my statement about not finding a problem I couldn't fix I guess I was more trying to think of something that could happen that would stump me to the point of needing an expert diagnostician.

I guess when something like a cam position sensor failed it'd be tricky to diagnose, but GMs error codes are pretty accurate/descriptive.
GM has a very effective OBD system, and most of their problems are pattern failures. I do agree on this, most of the time fixing a GM driveability problem it rots my brain cause its the same shit over and over.

What does this tell you about their vehicles?

Originally Posted by Woodrow
Nope. All above ground being the dealership is about 20 years old and that is how it was already laid out.


I think the issue is some do not see the overall big picture, but merely what affects them in their situation and that is fine. However, the general public are not always the case. I have quite a few customers that can do their own work and service and that is great. I also have a ton more that can't and are too busy working that they prefer to bring it to us and pay us to do the service. If they did it themselves, it would be too much an inconvenience.
I have quite a few enthusiast customers that have us do their work, cause of the time factor.

When people will realize their time is worth something, that is when the reality hits in. If they make xx/hr doing their job and making a living, why should they spend their well deserved free time maintaining their vehicle or doing work to it when they could be driving. spending time with family, or just about anything else other than car repair?

I fix cars for a living. I also own the property my shop is on, and am developing it with a few other tenants. I can do the CAD design and layout, I can do construction, I am a certified electrician, etc. Technically I can do the entire project by myself and save a shitton of money. But, I hire someone to do it in a timely manner, and know it will be done correctly.

There are always people who look at it in a dollars and cents manner, and not in the big picture that involves the other factors.
Old Jan 22, 2010 | 06:59 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Again... I know what you're talking about. If you're worth $100/hr and time=money then spending your time fixing your cars costs money.

This is why people perfectly capable of doing things choose to pay for it.... like home cleaning or landscaping etc. If I'm working my ass of in the office all week I'd rather spend the weekend driving my Porsche to the golf course and then to dinner etc. vs. cutting the grass, mulching, weeding, and doing a brake job on the car.

Again... I never said the service industry didn't have a place in society... obviously they do. Just... at a very simple basic level, could a dealer increase revenue by modifying pricing/policies on customer pay operations.

That's all
Old Jan 22, 2010 | 07:03 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by Cobra4B
Again... I know what you're talking about. If you're worth $100/hr and time=money then spending your time fixing your cars costs money.

This is why people perfectly capable of doing things choose to pay for it.... like home cleaning or landscaping etc. If I'm working my ass of in the office all week I'd rather spend the weekend driving my Porsche to the golf course and then to dinner etc. vs. cutting the grass, mulching, weeding, and doing a brake job on the car.

Again... I never said the service industry didn't have a place in society... obviously they do. Just... at a very simple basic level, could a dealer increase revenue by modifying pricing/policies on customer pay operations.

That's all
That is what is contradicting. You are saying someone is worth x amount of dollars and in the same posts mention how they should be cheaper.

There are reasons they can't be cheaper and reasons why people pay for the service. It costs a lot more to run a dealership Service Dept than an Independent shop.

Last edited by Woodrow; Jan 22, 2010 at 07:07 AM.
Old Jan 22, 2010 | 07:10 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

Originally Posted by Cobra4B
.

Again... I never said the service industry didn't have a place in society... obviously they do. Just... at a very simple basic level, could a dealer increase revenue by modifying pricing/policies on customer pay operations.

That's all

No, they cannot. its very simple math. To make the same amount of profit they are doing now, they would have to do 3-4 times the volume. Who in their right mind will want to work harder to make the same amount of money?

And lets not forget that MOST, not all, automotive enthusiasts are generally cheap fucks who do not care about the quality of service, just cheapest price.

again, I said most.

Last edited by HatefulMechanic; Jan 22, 2010 at 07:13 AM.
Old Jan 22, 2010 | 07:14 AM
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Default Re: Dealer service dept. revenues increase if they had reasonable prices?

You're assuming they'd have to cut their profit margin by 75%, then yes you'd have to work 4x as hard to make the same profit. But even so... if cutting profit margin by 75% caused a 401% increase in work then it'd pay off (factoring in increased variable costs etc.) But at the end of the day there just might not be that much business to get and thus the reason why dealers don't bother. "Indy" shops allready service that niche and dealers don't need to bother going after it.



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