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Competing With FREE Maintenance on New Cars Purchases

Joe Marconi
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Gary A Community Regular

Gary A

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I think that they are not our ideal customer at that point. The new cars don't need much anyway, so I don't think we are missing much for those first couple of years. We can also advise people that economically it is better to buy a used car maybe 1-3 years old rather than brand new. Some dealers are doing a better job on the service end of things but there are still a lot of customers that like to come to us no matter what. I guess you would have to know how they are really being charged for the maintenance becuse nothing is free and point that out to them.

We have seen an increase recently in new car sales. A lot of those cars that my customers were hanging onto are long past the useful life. The problem is that there are many new car dealers giving 2 years or more of free maintenance. How can we compete with this? Do we need to be concerned?

 

Think of all the other challenges we have these days. I know many of you might say that we lose a certain amount of customers for the first few years anyway when a customer buys a new car. But, I think now it’s different.

 

The dealerships need the service work now more than ever. Plus the dealer is beginning to understand the sales cycle. If they do a great job in the service department, it greatly increases their odds of selling those customers new cars in the future.

 

I would like to hear from other shop owners on what they think about free maintenance and how we can compete with this.

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  • Have you checked out Joe's Latest Blog?

    • Joe Marconi
      The Toolbox is Last to Leave, First is the Heart
      By Joe Marconi in Joe's Blog
         0 comments
      It always amazes me when I hear about a technician who quits one repair shop to go work at another shop for less money. I know you have heard of this too, and you’ve probably asked yourself, “Can this be true? And Why?” The answer rests within the culture of the company. More specifically, the boss, manager, or a toxic work environment literally pushed the technician out the door.
      While money and benefits tend to attract people to a company, it won’t keep them there. When a technician begins to look over the fence for greener grass, that is usually a sign that something is wrong within the workplace. It also means that his or her heart is probably already gone. If the issue is not resolved, no amount of money will keep that technician for the long term. The heart is always the first to leave. The last thing that leaves is the technician’s toolbox.
      Shop owners: Focus more on employee retention than acquisition. This is not to say that you should not be constantly recruiting. You should. What it does means is that once you hire someone, your job isn’t over, that’s when it begins. Get to know your technicians. Build strong relationships. Have frequent one-on-ones. Engage in meaningful conversation. Find what truly motivates your technicians. You may be surprised that while money is a motivator, it’s usually not the prime motivator.
      One last thing; the cost of technician turnover can be financially devastating. It also affects shop morale. Do all you can to create a workplace where technicians feel they are respected, recognized, and know that their work contributes to the overall success of the company. This will lead to improved morale and team spirit. Remember, when you see a technician’s toolbox rolling out of the bay on its way to another shop, the heart was most likely gone long before that.

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