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Joe Marconi

New Car Dealerships Continue to Push Prices Downward

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We recently had a customer tell us that we were nearly $100 more expensive on a Timing Belt job (Volkswagen Bug) than the dealership. I called that dealer (as a regular customer) and asked for a price on the same vehicle, only find out we were, in fact, $89.00 higher.

 

Now, we all know the price game when people call on the phone, they usually give a bottom, starting price. Also, how complete was that price? And, what would have the price been after the car was inspected at the dealership is another story.

 

The fact is we see more and more lowering of prices in service as dealership, especially from Toyota, Honda, Ford, GM, Subaru, Hyundai, Nissan and Chrysler in our area. The goal is to increase car counts in the service bays. Smart dealerships understand the relationship from the service bay to selling future new cars.

 

As independent shop owners we need to be aware of this. I don’t want to enter a price war with the dealerships, but I don’t want my customer to perceive the wrong message either.

 

Any industry that enters a price war will have deep casualties among all.

 

Your thoughs?

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