by robc » Fri Jan 29, 2010 10:25 am
In his email newsletter this past week Larry Edwards had a great saying something along the lines of "If you think cheap service is going to increase your business and profits, please see the how well that has worked in the new vehicle department." I wish I could find the newsletter for the exact comments he had. The point being - loss leaders are ok, but I think a competitive price for a service is better. With what GM has done to the maintenance intervals, what are we supposed to "upsell" customers on if we give away the LOF? The point of an agressive loss leader is to sell related products during the visit. Otherwise the milk would be at the front of the supermarket instead of the back corner (an old and tired example, but still applicable).