DealersEdge Professional Forums

intrested in comments about participating dealerships in service plus--has the program contributed to increase sales at your dealership? any comments pro or con would be appreciated--thanks

Jerry, look at GSP from two positions: YOUR dealership (primary), and General Motors (secondary).

Both share the same goal: Make money. GSP is only a merchadising program that tries to attract non-warranty parts sales. While the big message is the 'life-time warranty', GM will cover the part every time it fails while you cover the labor when the customer comes back to you. Don't you already have some sort of guaranty on repairs, why not make some of them for life? The real unknown is the cost of the parts. With GSP, GM is telling me that it is worth it to them (a money-maker) to absorb the cost of future part failures just to sell that part one time. That's a pretty big gamble.

The question should be: Would GSP work for YOU? Will/Can it make money for YOU? That depends on YOUR market. If you are the respected service facility with little competition, then don't do it because you don't need it. If you are in a metro area, GSP can be a differentiator: Not all dealers will sign-up and I don't know of many independants that offer long-term warranties.

You'll hear how uncomfortable dealers are because of the unknown cost of future labor for covered repairs, but that's a small investment. You will always create profit the initial time you do the repair (thru labor) and the customer still has to come back to you AT LEAST TWICE for a covered repair before it starts to cost.

scott

[This message has been edited by sallen1 (edited 09-11-99).]

[This message has been edited by sallen1 (edited 09-11-99).]

As Scott has stated in his post, the best part of the GSP program is the ability to offer your customers lifetime warranty on the covered parts that also brings the customer back to you in case of failure. Each market is different but, in our market, the competion is mostly aftermarket parts (Auto Zone) and independants (Goodyear). The GSP lifetime warranty supports our higher prices but more value the customer expects from a dealer.
As Scott also stated: the future costs of the labor of the failed GSP parts are still unknown but not likely to be overwhelming.

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JC

Be cautious of this and any other manufacturer "programs of the day". Ford ofered lifetime warranty for a period of years. As usual the program when away but not before conditioning the customers. Ford's reasoning for abondoning the program was that it did not add parts and labor sales. We operate a chain of dealerships with every GM brand except Buick. We do not participate in this program. We have not had one customer request for a lifetime warranty. Simply take care of your customer. Offer competitive pricing, not necessarily cheaper, and provide a pleasant experience and your business will grow in spite of the manufacturer.

Its hard to say whether GSP has worked or not. We aare almost maxed out in business every day and have been for some time. But the market is really strong. So far the GSP National advertising for the Nation wide specials has done nothing. I have seen them on the TV. I think GMSPO sould concentrate on operating their parts with the same energy they promote their GSP. So far, GSP has cost us waterpump and alternator labors. They did step up and pay for a major engine failure when a waterpump failed and overheated a engine badly. All in all, it is a OK product and shoould show its strengths (or weakness) when there is a slight downturn in business
Mike

Just for fun, I asked some of my non-dealership friends if they even knew what GSP was. Without fail, they either didn't know or assumed that all GM dealers offered lifetime warranties on everything!

I'm not sure it is reasonable to think that the average customer would seek out a GSP dealer "because they offer a lifetime warranty."

I spoke with a parts manager at a GSP dealer to see if he was selling more alternators, starters, compressors, etc. and he said he was, but they were being sold on warranty claims.

Had my st customer today come in and ask about GSP. Says he heard about it on the radio or TV. I explained the program. His first thought was it was deceptive advertising because the customer was thinking it was all parts, even parts installed under warranty. Also keep in mind this customer has recieved at least 6 service flyers that I have dedicated a large chunk of space promoting GSP.

Has anyone had any successes with the national GSP advertising program with the LOF, balance and brake jobs??

Mike

Mike, it's interesting that you say GM did step up to the plate to fix an engine failure caused by a LSG water pump. I'm getting horror stories from dealers over batteries being taken out by a LSG alternator and the rep refusing to cover them.

Like most everyone else, I had generally believed that consequential damage would be covered but a quick review of the P&P makes it pretty clear that GM "officially" denies any such policy exists.

David,
In the matter of subsequent damage, in 3 years I have only had 1 case. But it is not GMSPO making the call for coverage authorization, it is your DSM. I am extremely lucky to have a first rate DSM and he has a good boss. Since the change over, I have noticed a night and day difference. They are supportive and not confrontational. There is the feeling of true team work. I am fortunate to have known him for 15 years or so and through that time, true business relationships develop. I do not take advantage of him, and he does not do the same. I know others have not had the same positive experiences I have had. I am just thankful I have him.
Mike