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Free Service Continues to Plague Repair Shops

Joe Marconi
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Gary A Community Regular

Gary A

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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.

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Spence Enthusiast

Spence

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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 Enthusiast

Spence

Posted
Posted

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 Contributor

GobblesAuto

Posted
Posted

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 Enthusiast

Spence

Posted
Posted

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 Enthusiast

Spence

Posted
Posted

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 Community Regular

5 Star Auto Spa

Posted
Posted

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.

Spence Enthusiast

Spence

Posted
Posted

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?

Spence Enthusiast

Spence

Posted
Posted

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.

 

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Technician Shortage Is Our Fault, And It's Time We Own It
      By Joe Marconi in Joe's Blog
         0 comments
      The Technician Shortage Is Our Fault, And It's Time We Own It
      Nearly every day, I hear shop owners complain: "There's a technician shortage. We can't find qualified people. There's no one out there." If that's true, then who's to blame?
      The industry? The schools? The government? I don't know how you feel, but who promised us an endless supply of qualified technicians?
      Another common complaint is that young people do not want to work in the trades. Well, if that were true, then why are other trades such as HVAC, electrical, and plumbing growing? What are they doing that the automotive industry is not? 
      Here's the reality we need to face: We do have a problem, but we shouldn't look for someone or any entity to rescue us. Not the government. Not the trade schools. Not the recruiting companies. No one owes us a workforce. If we want great people in our industry, it's up to us. At some point, we need to own up to the truth: Building a pipeline of qualified technicians is our responsibility.
      In this blog article, I will break down the key reasons we are in this situation today and what we, as an industry, can do to solve the technician shortage. Are you ready to look in the mirror?
      Have We Pushed Technicians Away?
      Let's take a look at flat-rate pay. True flat rate, which pays a technician only for the hours they produce, is a controversial pay plan that emphasizes high production levels and creates a competitive work environment that, if not properly controlled, can lead to increased mistakes and a decline in morale and team spirit. Additionally, the stress and physical demands placed on technicians as they age are not favorable to long-term employee retention. What do we do with technicians as they grow older into their fifties and begin to slow down? 
      I have heard all the arguments and pros and cons of flat-rate pay, and I am not going to judge any pay plan. Let the facts speak for themselves. True flat rate has changed in most areas around the country and has evolved into a pay plan that gives technicians some pay guarantee.
      Many shop owners have learned that team morale, along with the opportunity to earn income, is important to technicians and to the company's long-term success. But let me ask you: how many technicians have left or been pushed out over the years because of the old flat-rate pay system?
      Another issue is the workplace environment. I remember being grateful to be hired as a young technician at a local repair shop. While very thankful, the work environment was not ideal. The shop owner kept the bay doors open year-round (I am from New York) unless it rained or snowed. He felt that if the bay doors were closed, customers might think we were closed for business. We had no heat and no hot water. Many of the jobs were done outside, year-round,  in all types of weather. The starting pay was minimum wage, with no benefits, sick days, or vacation pay. 
      Now, again, I need to point out that I was truly grateful for the opportunity this shop owner gave me. I learned a lot working there, and the experience was pivotal in my career. But looking back, I wonder how many people were discouraged by these working conditions?
      While the physical demands of the repair workplace are daunting, perhaps even more critical is the culture. Too many of my generation shop owners preached the mindset of "my way or the highway." We were the business owners, after all. We started our companies, took all the risks, and provided jobs. Why shouldn't we be the ones to set the ground rules our way?   
      Many of us found over the years that the "my way or the highway" mentality was a sure way to isolate employees and make them more likely to look over the fence for greener grass. In other words, it led many technicians to seek employment elsewhere, where they felt they could be appreciated and recognized for their hard work. The issue, however, was that there wasn't much green grass around. Disappointment after disappointment, bouncing from repair to repair shop, eventually led to despair. So, I ask you: were workplace conditions a contributing factor in today's technician shortage?
      Another factor that we are all well aware of is the complexity of the modern automobile. When I started, the work was mostly physical, and you were required to master essentially three vehicle models: General Motors, Ford, and Chrysler. Let's fast-forward to today. The evolution of automotive technology, along with the extensive training and tools required, has outpaced the typical technician's pay compensation, with no clear career path. Again, leading to frustration and insecurity about the future.
      Here is the bottom line: people don't leave their job; they leave their experience. We must do a better job. 
      The News Isn't all Bad; Your Next Steps to Fix the Technician Shortage
      To fix the technician shortage, it will take a combined effort from everyone in the automotive industry, particularly automotive shop owners. Shop owners are in the perfect position to make the greatest impact, not only on their businesses but also on the future automotive workforce.
      First, shop owners must become better leaders and understand that their ultimate success is directly dependent on the people they assemble around them. Any shop owner who mistakenly believes they can build an empire solely on their abilities is destined for serious disappointment. Business owners who think like this will eventually plateau. Without the collective contributions from a team of qualified people, your business will stall; it will not continue to grow.
      Create a workplace that attracts top talent: a clean, professional, well-equipped facility designed to support productivity, teamwork, and a career, not just a job. Build a great reputation in your community by getting involved locally. Become the auto repair shop that people take notice of as "the" place to work.
      Next, shop owners must become more financially knowledgeable. Knowing your numbers and what you need to achieve for a strong bottom-line profit is essential to paying technicians the money they need and deserve. Profit will also allow you to compete with other trade industries by providing a benefits package that has real take-home value and security.
      When it comes to culture, this is where the rubber hits the road. People crave recognition, praise, and a sense of purpose. Despite what you hear, people are not just money-motivated. Once people feel secure in their financial situation, retaining and motivating technicians can only be achieved by connecting with them on an emotional level. You cannot show enough appreciation. Give out praise for a job well done as if your business depended on it, because it does.
      As technicians age, we need to have a place for them. Expecting a 58-year-old to perform like a 35-year-old is unrealistic. We need to be more focused on career pathing. Provide training, skill development, and coaching to develop leaders and mentors within our older workforce. While their bodies may have slowed, the knowledge they have gained is priceless. 
      Our future is dependent on young people entering our industry. We need to give more young people opportunities. Every shop owner across the country should consider hiring an apprentice, then build an apprentice training plan and career path for them. If every shop did this, we could solve the technician shortage within five years. Get involved with the trade schools and high schools in your area. Look into the NAPA Apprenticeship Program. Don't sit on your hands with this one. Do it today.
      Lastly, don't get left behind. Commit to ongoing training for all your employees. Keep up to date with tools and equipment tailored to your business model. Don't try to be all things to all people and all vehicles. Identify your core profile customer and the vehicles they drive, and become an expert on those vehicles and the services you offer.

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