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Local Dealer Lays Off 5 Techs


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The brother of one of my techs works at a local Chevy dealer and told me the other day that they laid of 3 techs recently and will lay off another 2 today. This dealer is the only Chevy dealer left in its area and it's a sign of what the dealers cannot do, build strong relationships.

 

As dealer margins on new cars continue to shrink they will become more aggressive with building the service department. Dealers are already slashing prices, thinking that people want price only. Discounts will attract some people, but the effect it will have on industry pricing is what I fear.

 

Times are tough, but we must build for the future. We need to keep a close eye on the dealers. They are in a fight for their survival

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My younger brother works at a Chrysler dealership... he's one of the top techs, but he's even worried about his job. The problem seems to not so much to be customer loyality but in how much work the tech can turn out. They work the dealership where every ticket has to have some sort of up sale included. If the tech is unable to make that extra sale per job... he's out. Now that gets back to customer loyality. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Right now, I'm overwhelmed with work. Mostly older vehicles. But, they are looking for somebody to keep these relics alive so they can avoid buying another car. That to me... is where we as the independent market need to stress our expertise. Most dealerships wont take on a car that is over 5 or 10 years old, where we'll take it on. The dealership has an attitude that the older the car is the less likely to have had regular maintenance and their liability goes higher and higher on those older cars.

 

I really believe the ability of a decent independent shop rests on taking care of the cars that their customers bring them. Not to take on jobs they don't have the expertise in, but ship those customers to a shop that can do that work. Don't be greedy, share it with the rest of the working shops in the area. The more we work together the more people will understand that the real value in car repair is in a shop that they can trust, can do the job, and is willing to go the extra mile to repair it.

 

Keeping the cost down isn't as much a problem when it comes to the idea that the customer knows this is the ONLY way to get their car repaired without going to a bunch of retards that claim they know how to fix it but really only change parts.

 

Keep the work honest, keep the work on the top shelf... and I truly believe we'll all be in business for years to come.

 

 

 

 

The brother of one of my techs works at a local Chevy dealer and told me the other day that they laid of 3 techs recently and will lay off another 2 today. This dealer is the only Chevy dealer left in its area and it's a sign of what the dealers cannot do, build strong relationships.

 

As dealer margins on new cars continue to shrink they will become more aggressive with building the service department. Dealers are already slashing prices, thinking that people want price only. Discounts will attract some people, but the effect it will have on industry pricing is what I fear.

 

Times are tough, but we must build for the future. We need to keep a close eye on the dealers. They are in a fight for their survival

 

 

 

 

 

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  • 7 months later...

My younger brother works at a Chrysler dealership... he's one of the top techs, but he's even worried about his job. The problem seems to not so much to be customer loyality but in how much work the tech can turn out. They work the dealership where every ticket has to have some sort of up sale included. If the tech is unable to make that extra sale per job... he's out. Now that gets back to customer loyality. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Right now, I'm overwhelmed with work. Mostly older vehicles. But, they are looking for somebody to keep these relics alive so they can avoid buying another car. That to me... is where we as the independent market need to stress our expertise. Most dealerships wont take on a car that is over 5 or 10 years old, where we'll take it on. The dealership has an attitude that the older the car is the less likely to have had regular maintenance and their liability goes higher and higher on those older cars.

 

I really believe the ability of a decent independent shop rests on taking care of the cars that their customers bring them. Not to take on jobs they don't have the expertise in, but ship those customers to a shop that can do that work. Don't be greedy, share it with the rest of the working shops in the area. The more we work together the more people will understand that the real value in car repair is in a shop that they can trust, can do the job, and is willing to go the extra mile to repair it.

 

Keeping the cost down isn't as much a problem when it comes to the idea that the customer knows this is the ONLY way to get their car repaired without going to a bunch of retards that claim they know how to fix it but really only change parts.

 

Keep the work honest, keep the work on the top shelf... and I truly believe we'll all be in business for years to come.

 

 

 

Now that gets back to customer loyalty. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Actually have a different way of looking at this... Customer loyalty can be a key factor but any customer can become a loyal customer... its up to the writer to educate and inform the customer, build trust and therefore loyalty.

 

Keeping the cost down for the client as far as awareness of their resistance to spend goes but following proper procedures is paramount and charging for them is the ticket to profitability. Diagnosis time for every concern. Apples for apples in parts quality and warranty. Your profitability in your center should be paramount that the only other thing should ever exceed that is reputation. The rest will take care of itself.. actually older cars give you from an industry average a higher ticket, more repeat business and is a great model to build something solid off. As the economic climate improves and they can afford a new car they will return to you for the gravy, 5K, 15K, 30K 60K services that drive profitability and you will further sting the dealer by keeping their FORMER client now your client happy. Keep up the good work.. Love to hear guys that are honest and do only top of the line work.. Kudos

 

Carl

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The gravy service's are being offered with the new car purchase in many cases. People being offered Free tires,oil changes,loaner cars, etc. It's war. We must Fight the good fight for a profitable niche so that our familes and employees can live a decent life.

B)

 

 

And what would be your ideas to "fight the good fight"? I would be interested in hearing them.

 

Spence

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Now that gets back to customer loyalty. If this is the type of customer who isn't worried about price then there is no problem, but those type of customers are getting few and farer between.

 

Actually have a different way of looking at this... Customer loyalty can be a key factor but any customer can become a loyal customer... its up to the writer to educate and inform the customer, build trust and therefore loyalty.

 

Keeping the cost down for the client as far as awareness of their resistance to spend goes but following proper procedures is paramount and charging for them is the ticket to profitability. Diagnosis time for every concern. Apples for apples in parts quality and warranty. Your profitability in your center should be paramount that the only other thing should ever exceed that is reputation. The rest will take care of itself.. actually older cars give you from an industry average a higher ticket, more repeat business and is a great model to build something solid off. As the economic climate improves and they can afford a new car they will return to you for the gravy, 5K, 15K, 30K 60K services that drive profitability and you will further sting the dealer by keeping their FORMER client now your client happy. Keep up the good work.. Love to hear guys that are honest and do only top of the line work.. Kudos

 

Carl

 

A lot of good comments you make Carl. It's applying those thoughts that I think would be good to explore. We'll see...

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And what would be your ideas to "fight the good fight"? I would be interested in hearing them.

 

Spence

 

 

I am Second, Read My Bible Every day, Seek Wisdom , Service others as i would want to be served ,Give every customer something they can see for free. Give every person you meet a reason to smile and say hello next time they see you. Give a business card to everyone you meet thanking them for prayers and referrals,Early to bed ,early to rise makes one Healthy, Wealthy and Wise. No Drugs, No Booze. Happy Wife Happy Life, Go to Church often.Never Give Up. B)

Edited by FROGFINDER
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