GM Winter Car Care Program

[drapp]

We were looking over this program and wondering how other dealers operate this.

One price LOF with tire rotation, includes six quarts oil, filter, etc. If I understand the marketing law properly anything mailed as a special or promotion must be priced LOWER than normal pricing. Many vehicles only take 4 quarts of oil (Impala). In order to price this program properly it looks like we will really take a hit on a 6 quart vehicle.

How are you doing it, just calling it advertising?

How much do you pay your techs to check the battery in the manner the coupon dictates?

Are you charging extra for tire rotations with the tire pressure monitors. We charge 1/10 extra if we have to use the tool.

Thanks

[capsgs]

Don't worry about the pricing structure. That's not what lures them in. It's $15.00 off and $40.00 off tire cards that bring people in. Also you'll do a lot better if you DL your manifest list and remind people that haven't come in that they are throwing away $15.00.

[drapp]

The Winter mailing does not include any "dollar off card". The enrollment form doesn't mention one and I called RMS and they confirmed no card will be included in the Winter mailing.

[gmservice1]

I think you're splitting hairs over this one. My parts manager and I agreed to bill all oil out at 5 qts since most are 4 1/2 anyways. It'll all even out in the end. We do ours at $29.95 across the board, TPMS included. I think you are missing the whole point of these programs. It doesn't matter to me if it gets billed to advertising, service discounts, whatever. All I care about at this point is generating RO's and upsell opportunities. This is something to generate traffic. You must have too much business already, if you're that worried about discounting your prices a little.

[Whiner]

gmservice1

You are exactly right. All that matters now is traffic. I would accept some repair orders at cost (maybe even a loss leader) to keep us (parts & service) busy. However, service manager doesn't believe in that. He states if we can't make money on it - Why do it.

I told him the other day that creating traffic was important. It was up to him and his staff (consultant & technicians) to recommend to vehicle owners any necessary maintenance and repairs from the increased traffic. The resulting conversation was not pleasant and we both agreed to disagree. I also apologized for telling him what I thought HIS employees should be doing. Clearly I over stepped - it is not my department.

[Gerry Laughlin]

Whiner,
I really must ask, if he didn't agree with you, what was his point of view? The Service Manager and I just had the same discussion about traffic, and decided that we were getting the people in for LOF's but were so busy trying to get them done that we may not be properly inspecting them for the upsells.
Gerry