Lifetime freebies!!

[gordyw]

We are considering giving away free lifetime tire rotations for as long as the original owner has the vehicle and for as long as the owner does all of the scheduled maintainence
with our dealership. We have considered others such as every 5th lof free etc. My feeling is that you will get the return visits and have more chances to look over prime items to sell, brakes,tires,alignments etc. Has anyone else done this in their service departments?

[sallen1]

gordy,

we've done some limited free maintenance stuff and it works pretty well.

Giving something away for 'lifetime' contingent on having all service done at you shop may create problems.

In any case, you'll enjoy higher loyalty with those customers

scott

[gman]

Scott,

What are some of the freebies you have had the most success with?

Thanks,

gman

[sallen1]

gman,

For the past 4 years we have provided a 2yr/24k mile maintenance package included with all new and used cars we sell. Its a bunch of oil changes, tire rotates/balances and a couple details. Costs about $200 per car sold (split between new/used and service) expensed when the customer comes in. The total expense each month is about $9,000 (charged to advertising). We have about a 95% usage!

The results: GM will show you 'owner loyalty' figures. Also, you can have service-reminder-companies do the analysis: our result runs about 95% during the warranty period and about 85% post warranty.

What's the economic value? We generate about $40 gross per advertising $ spent and I think that's pretty strong compared to the $4 gross per ad$ average.

How come you don't do this? First of all, once started you can never stop. Second, most sales departments will cringe at the $4500 charge ($9k split) every month for cars sold months ago. But remember this: Service sells cars.

Try it, you'll like the results

scott

ps. We started accumulating the $200 per car sold when the car was sold. Obviously, we generated a ton of money early and our tax accountant took that as income. Therefore, we now charge the expense as it occurs. This is also the advertising 'holy graile': you don't spend the money until AFTER the customer comes in.

[This message has been edited by sallen1 (edited 01-25-2001).]

[DELROY]

I WOULD AGREE WITH SALLEN1 TO A POINT. UTELIZING FREEBIES ON A CAR SALE TO TIE A CUSTOMER TO THE sERVICE dEPARTMENT CAN WORK VERY WELL. SO CAN DEEP DISCOUNTS THAT AT LEAST COVER YOUR COSTS. WE GIVE THE 1ST LOF FREE AND THE NEXT 4 AT 1/2 PRICE. I BELEIVE THAT IF YOU GIVE IT ALL AWAY THEY WILL TAKE IT. IF THE CUSTOMER HAS TO PAY SOMETHING THEY ARE PERCIEVING A BETTER VALUE.

[fsmall]

Scott,


Just a thought for you.

If your in a reinsurance deal for your service contracts you may be able to put the "premium" into your offshore account where it will earn interest and be tax free until used.

Fred