where do menus stop and $$$ take over

[robc]

I realized by posting that some would be sold on the need of a particular service, while others would only be sold on their need to boost the dept's revenue.

But can anyone defend doubling up on the rotates? One of my issues is diminished returns of the costs. I have watched slowly dip down in intervals. I remember 20 years ago it was a once a year thing, now most manufacturers say twice a year, and we have some like our example dealership recommending four times a year.

Now I realize there are expensive tires out there, but lets just assume that I can get a quality set of four Goodyear Aquatreads installed on my vehicle for $450 complete. Lets also assume the OEM junk tires that are on the vehicle when new last 36k under good conditions.

I see tires getting ruined in 18k for lack of rotating sure it could happen sooner, but that is about when Ive noticed problems start to show up. So lack of rotation cost half the expected life of the tires - $225.

Since the difference between a LOF and a LOF/rotate is $28 that is $336 to rotate the tires 12 times (36k divided by 3k). Is it really worth spending $336 to rotate $450 worth of tires?

There is a limit between - well it won't hurt - to whether it provides a lasting value. As a comparison and just some food for thought of the top of my head:
How many people have the plumber come out to drain or flush their hot water heater annually?
How many have a chimney sweep come out annually to do their flues, including the dryer and furnace?
How many have their mower serviced every year?
Ever taken your VCR in for a cleaning as recommended in the manuals?


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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[This message has been edited by robc (edited 10-22-2004).]

[Mike Vogel]

I see your point Rob and agree that 3K rotations is excessive. We do recommend 5K rotations on Toyota's and find that customers that do not follow can expect at least half the life in most cases. Since we also inspect the brakes every 5K rotating the tires is done at the same time. Most tire manufacturer's I belive recommend every 6k miles for rotations so the dealer you were talking about is recommending twice as much.

[jazdale]

I have helped several dealers build their service maintenance schedule. I always have to remind them that their greed may turn away a very good customer for life.

It usually hits the service manager when I ask "do you maintain your vehicle like this?"

At 15k a year, nobody is going to put $1000 a year into simple maintenance of their car.
Especially a leased vehicle.

[TomD]

Always keep in mind- no matter what you think your service menu price should be in your market(high,Low or in the middle)- YOU MUST MAINTAIN AND CONTROL YOUR GROSS on all the items. Otherwise its going to impact your financil statement big time, and you might not be able to dig out from under it.

[outlawjrj]

What I don't see in this forum is what does the factory recommend, and do they follow that way of thinking? We are an import store, Hyundai. Always in the top 3 out of 570+ dealerships in CP labor and CP RO parts sales. Yes Hyundai has a long warranty, 10 year/100,000 miles, but our CP to Warr labor ration is 60/40 CP. Some times I read in this forum where allot of people want to get into deep discussions about how they should approach this or that. I think it needs to kept pretty simple. Approach it this way.....where are your customers going? Pep Boys, Sears, Goodyear and Firestone, or mom and pop independents, or both. Look in your local paper....you'll see that the indies advertise that they will do your FACTORY required services for $$$$. What do they actually do. Why not phone shop them? Labor,....what do they do? PArts,....factory or A/M? Our competition is not the other dealers, but the independents, and our entire Service Reminder Program is geared not only to to keep our name out in front of the customer as a choice, but to also educate them that as a dealer, we can compete with the indies. We might not beat every price, but come very close. Of course we educate our customers on this with our internal SR program, price comparison board in the service drive, etc. Don't reinvent the wheel.....just see what you can do to make it roll faster!