Free Service Continues to Plague Repair Shops

[Joe Marconi]

Because of the storm this week I made it a point to meet and speak with every customer who managed to come in. Many came by to check their car for damage, some even stopped by to charge their cell phones, since they had no power.

 

I spoke to a number of customers with new cars and asked them why they haven’t been in for service, but only for State Inspections and other minor issues, such as a tire light on. They told me it was due to their free service at the dealership. These car makes included; Toyota, KIA, Subaru, Volvo, and Audi.

 

I know this has been brought up before, but the question is, “How do we compete with free?” Another question is, “What is free?” Many consumers don’t realize that the oil change is the only freebie. The customer will pay for items such as tires, brakes, tire rotation, air and cabin filters and wipers. In fact, one customer showed me her 15k service on her Subaru which included spark plugs, transmission service, coolant service, tire rotation air filter, cabin filter and a whole lot more. That’s a 15k service! HOW'S THAT FOR FREE SERVICE, RIGHT?

 

We know what goes on, but the consumer does not. Why they can’t see thru the smoke and mirrors will remain a mystery, but the sad fact is that we may be losing the battle to this false marketing that anchors customers to the dealership.

 

I don’t mind healthy and fair competition, but the questionable disguise of FREE service casts a voodoo-like magic over the consumer. It’s amazing how they recite the words from the sales person, “Everything is free, everything is free, I was told everything is free”. And when questioned about what exactly is free, they stare at you in silence.

 

So, how do we compete with Voodoo Free Service?

[Gary A]

I have a good customer that bought 4 Ford edges for his family. used late model. They claim that they are getting everything for free. brakes tires everything. I am going to try to monitor this one closely to see see exactly what they are getting.

[Jeff]

I am seeing free but more in the line of tires and batteries. BUT in order to qualify for these "freebies" you must follow the dealers recommended service schedule. Much the same as your customer, plugs, injector flushes, trans service, etc at 15k when the factory recommends 60k or later. Whenever I get a chance I will show a customer where they are not "free"! They are paid for in added high profit services that are being performed long before necessary. I have won over a few. I have also added value by using BG products which in turn allows me to add BG provided road service. My cost is in the 5-8 dollar range on an LOF. Many of my regulars have dropped the dealer for the "free" road service I provide! And the road service card expires which keeps them coming back!

[Spence]

Because of the storm this week I made it a point to meet and speak with every customer who managed to come in. Many came by to check their car for damage, some even stopped by to charge their cell phones, since they had no power.

 

I spoke to a number of customers with new cars and asked them why they haven’t been in for service, but only for State Inspections and other minor issues, such as a tire light on. They told me it was due to their free service at the dealership. These car makes included; Toyota, KIA, Subaru, Volvo, and Audi.

 

I know this has been brought up before, but the question is, “How do we compete with free?” Another question is, “What is free?” Many consumers don’t realize that the oil change is the only freebie. The customer will pay for items such as tires, brakes, tire rotation, air and cabin filters and wipers. In fact, one customer showed me her 15k service on her Subaru which included spark plugs, transmission service, coolant service, tire rotation air filter, cabin filter and a whole lot more. That’s a 15k service! HOW'S THAT FOR FREE SERVICE, RIGHT?

 

So how much did the 15k service cost this Subaru customer?

 

We know what goes on, but the consumer does not. Why they can’t see thru the smoke and mirrors will remain a mystery, but the sad fact is that we may be losing the battle to this false marketing that anchors customers to the dealership.

 

A battle worth fighting! Staying in touch and asking to see work receipts is a good start! Look for the loop holes that the customer doesn't see and point them out. If the dealership ploy is exposed then the trust is lost also.

 

I don’t mind healthy and fair competition, but the questionable disguise of FREE service casts a voodoo-like magic over the consumer. It’s amazing how they recite the words from the sales person, “Everything is free, everything is free, I was told everything is free”. And when questioned about what exactly is free, they stare at you in silence.

 

That stare is your chance. You need the info I mentioned above and more to fill in the blanks of that blank stare.

 

So, how do we compete with Voodoo Free Service?

 

 

Thanks for bringing up the topic. Hopefully it will stir the pot with some better tactics of our own.

 

 

[Spence]

I have a good customer that bought 4 Ford edges for his family. used late model. They claim that they are getting everything for free. brakes tires everything. I am going to try to monitor this one closely to see see exactly what they are getting.

 

Looking forward to what you find out Gary.

[GobblesAuto]

A good customer of mine just bought two new Hondas. They come with lifetime powertrain warranty if all the maintenance is followed and performed by the dealer.

 

This is difficult to compete with

[Spence]

Besides the two posts I made so far on this subject I wanted to add.

 

1. I have seen this in a couple different formats. By that I mean the free service was only at the dealership the car was sold at. Other makes it is with the manufacture and it is good at any of their dealerships.

 

2. If a customer owns 3 different makes... Lets say a Ford, a Chevy and a Toyota. And the Ford gives the so called FREE service. If that customer trys to take in their Chevy or Toyota could they get "FREE" service? Not likely and that speaks volume It means they are paying for it when they bought the car. Do they really want to deal with a place that pulls sneaky tricks like this? Or do they figure since I paid I should go back and get as much as I can?

 

3. Before the OE's had this so called FREE service oil changes where at 3,000 to 5,000 intervals. Have you noticed since they have been paying (meaning the OE's) that their oil change lights come on around 12,000 to 15,000? The cars are junk and don't last as long. Sounds like a good program for selling the next car if you ask me. Have you pointed this out to your customers?

 

4, Being as scheduled maintenance is pay and oil changes are free. Prices are a game where they hide some of this crap.

 

5. Dealer Techs are not happy. I have spoken with quite a few. Try doing the same and see if you are getting the same in your area. The so called FREE has been passed on to the techs. They are not getting the same time to do some of this work that they use to. This could backfire soon.

 

Good,,, No great subject to discuss!

[Spence]

A good customer of mine just bought two new Hondas. They come with lifetime powertrain warranty if all the maintenance is followed and performed by the dealer.

 

This is difficult to compete with

 

At what cost is this maintenance?

[5 Star Auto Spa]

Joe,

 

Did you respond to the customer that had the 15K service done with all of that "extra" work performed at the dealership? I would like to hear how you have been responding to customers on this topic.

[Joe Marconi]

Joe,

 

Did you respond to the customer that had the 15K service done with all of that "extra" work performed at the dealership? I would like to hear how you have been responding to customers on this topic.

 

Yes, I explained to her that the 15k service the dealer sold her was a "Dealer written" service, not the factory service. I also added that many of the services she had done, were not needed at that mileage.

 

But people react funny when you present them with the facts, especially if they think you are questioning their decision. It becomes a power play, they almost want to defend their decision, rather than admit they were misled.

 

The more I spoke the more I could see the anxiety increase in her face, so I explained to her (and showed her) the factory schedule. But again, it becomes MY WORD against the DEALER'S WORD. And while deep down I put doubts in her mind, ego tends to cloud people's view and that FREE thing keeps coming up as a way to rationalize everything else. She actually said at one point, "Well I guess they got to sell you something for all the free stuff they give you".

 

This is a tough one, tough for me at least. The dealer has an advantage because the sell the car and more and more dealers understand that if they get the customer to come back for service, they not only increase the overall profit of the dealer, they greatly increase the odds that the customer will buy another car from them in the future.

[Spence]

Yes, I explained to her that the 15k service the dealer sold her was a "Dealer written" service, not the factory service. I also added that many of the services she had done, were not needed at that mileage.

 

But people react funny when you present them with the facts, especially if they think you are questioning their decision. It becomes a power play, they almost want to defend their decision, rather than admit they were misled.

 

The more I spoke the more I could see the anxiety increase in her face, so I explained to her (and showed her) the factory schedule. But again, it becomes MY WORD against the DEALER'S WORD. And while deep down I put doubts in her mind, ego tends to cloud people's view and that FREE thing keeps coming up as a way to rationalize everything else. She actually said at one point, "Well I guess they got to sell you something for all the free stuff they give you".

 

This is a tough one, tough for me at least. The dealer has an advantage because the sell the car and more and more dealers understand that if they get the customer to come back for service, they not only increase the overall profit of the dealer, they greatly increase the odds that the customer will buy another car from them in the future.

 

My question still remains... Did she have to pay(which I think you answered here) and if so how much?

[Joe Marconi]

My question still remains... Did she have to pay(which I think you answered here) and if so how much?

 

She did not have the invoice with her from the dealer, but she said that she did everything that was listed on the dealer 15k. She would not tell me what she spent, but said it was "a lot".

[Spence]

She did not have the invoice with her from the dealer, but she said that she did everything that was listed on the dealer 15k. She would not tell me what she spent, but said it was "a lot".

 

I think it was a good move to back off a bit when talking to her. The comment she made as "a lot" speaks volume! I doubt she feels it a good value. This may be the angle to go at.

 

Give her a week and make a call to show her you have been thinking of her and wanted to thank her for taking the time to share. It'll keep your face in front of her as a caring shop owner and the dealership thought she has for what it is. You have a leg up on the dealership though you might not feel it right now. She came to you and seems to show trust. She seems to also have a distrust for the dealership from how you are telling the story. Build on this.

 

The next question I have is what is this customer worth to you? Put a realistic value for a year. In other words start thinking what a customer is worth to you per year. Not just this one but any of them. Would it be worth 40 or 50 bucks to re gain her business to you? Think on that...

 

I think I'll stop there for now, Thanks for the response Joe.

 

Spence