Software for charging customers a monthly fee for car maintenance

[danilredko]

Hello everyone, 

I have an idea of a software that can be used to charge a customer a monthly fee. 

For example, you could have different tiers: 

Maintenance Lite - 15$ a month: low monthly payment for all of the conventional oil changes required by the average driver each year.

Maintenance Basic - 20$ a month: Maintenance Basic includes everything you'll find in Lite, but adds... Unlimited Synthetic Oil Changes (as needed), On Rim (Seasonal) Tire Rotations (as needed), Complimentary Re-Torquing after changeover.

Maintenance Plus - 40$ a month:  includes all services from Ultimate Maintenance Basic, plus the following...
- Off Rim Seasonal Tire Rotations (as needed)
- Seasonal Tire Storage
- Flat-Tire Repair (excluding roadside assistance)
- Up to four General Service Calls (diagnoses, bulb replacements, filters, etc...)
- Battery Boost/Replacement (excluding roadside assistance)
- Priority Scheduling Service (For seasonal tire changeover)

What do you think about it? 

Thank you! 

Edited October 20, 2021 by danilredko

[rpllib]

 

This is a partial list of companies trying various approach's to subscription based automotive repair and maintenance. Some claim to have advanced software to administrator and monitor the programs. I expect this is definitely part of the future automotive service landscape, especially if it gets picked up by a major player. I suspect it will take a substantial subscriber base for a successful business model to evolve. 

https://emp.autologiq.ca/

https://www.carholdings.ca/

https://www.90autorepairclub.com/

http://www.autotekpro.com/automotive-blog/vehicle-maintenance-service.html

https://resolvauto.com/

https://myautorepaircenter.com/membership/

https://www.thecarrepairclub.com/

https://www.havenautorepair.com/Coupons/Monthly-Membership-Packages

https://www.membershipauto.com/

https://www.syncron.com/news/transforming-auto-dealer-services-for-the-subscription-economy/

https://www.forevercar.com/

 

[bantar]

38 minutes ago, rpllib said:

This is a partial list of companies trying various approach's to subscription based automotive repair and maintenance. Some claim to have advanced software to administrator and monitor the programs. I expect this is definitely part of the future automotive service landscape, especially if it gets picked up by a major player. I suspect it will take a substantial subscriber base for a successful business model to evolve. 

Wow.  First I've seen of these.   Briefly looked at about half of these.    Some look like Car Warranties in different skins.   These guys are the master of fine print.   Some appear to be shops trying to lock in a recurring revenue stream, but seem risky, as I'm guessing they are missing that ever important fine print and inherit evil-nature needed to pull it off successfully.    I would expect membership to be abruptly cancelled once the fine print does kick in denying a service.   

All of the ones I looked at came off like a Warranty Company and most people already know to hate and shun Warranty Companies. 

Some of these are akin to Marketing companies trying to skim revenue with referrals to a provider.   Good luck finding a local locksmith or a local towing company or a local handyman without running into one of these marketing powerhouse who show up on page 1 of google searches.   You call the marketing company and they skim revenue from the local providers.   I always try to duck these guys and find the providers directly where possible.

Also, I feel icky after looking at these websites.   

[rpllib]

I think it is the resolvauto.com link that shows me these are not all extended warranty type scam companies, although some are for sure. Resolve is a Bridgestone Firestone USA program and it shows up on their service websites, such as Firestone Complete Auto Care websites, Terms here: https://resolvauto.com/legal/RESOLV_terms-and-conditions_2020-12-14.pdf.  Plan offerings here: https://resolvauto.com/sign-up/add-plan

Not sure what demographic this might work for, as it does not eliminate repair costs, and does not appear it is a good value for most consumers, but it does show that big players are testing the waters.

It does appear to be a viable business model that could generate profit dollars, based on a cursory review of the monthly charges and benefits provided. 

[bantar]

Agreed.  I did look at Resolv and also noted that there was not much value provided by spending $720/yr.    At least Firestone is not risking much.  I see about $120-$300 in hard costs vs $720, so it's a great deal for Firestone.  If you need a battery, especially an AGM battery, then this might come close to break even for the consumer.   Some others were touting a monthly plans, but this one is an annual plan, paid monthly.   Maybe the fine print in all are annual plans.   I would imagine that Resolv would be a tough sale.   The other thing that they did was to convert their road-hazard programs to a subscription model.... adding in an alignment.   This may be a good value to the consumer as the alignment eats up most of the $120.

It reminded me of the NTB 5 year alignment plan, which has a better face value. 

Thanks for sharing the list. 

 

To Danil

On 10/20/2021 at 5:51 PM, danilredko said:

For example, you could have different tiers: 

Maintenance Lite - 15$ a month: low monthly payment for all of the conventional oil changes required by the average driver each year.

Maintenance Basic - 20$ a month: Maintenance Basic includes everything you'll find in Lite, but adds... Unlimited Synthetic Oil Changes (as needed), On Rim (Seasonal) Tire Rotations (as needed), Complimentary Re-Torquing after changeover.

Maintenance Plus - 40$ a month:  includes all services from Ultimate Maintenance Basic, plus the following...

Hopefully, you have the necessary fine print to remain whole.  For instance, can I bring my 2021 10 quart Land Rover in for a synthetic oil change and pay the $20 plan, then cancel on month 2?    Did you contemplate such expensive oils in your unlimited synthetic plan?   I charge more than your total yearly maintenance cost for this one oil change.    Firestone/Resolv prequalifies each car for the plan and does not accept all vehicles.   They list no criteria.     Are your prices and plans providing significant value to your shop?   And have you floated this concept by any of your customers?

[Jeffrey]

Very interesting.

I will be releasing a new management software program next year that will address prepayments and many other issues.
It will be perfect for smaller shops and mobile as well.
I have tackled many areas of todays programs that are lacking.

I'm excited about it and would love to share it with you now but when its ready
We will be advertising on AutoShopOwner. 

We are looking at a release date of about May 2022.