Fixed Ops Magazine - 2020 Vol17 02 - 17

and guaranteed workmanship - is how
you'll build a loyal customer base for
the long haul. But, where do you start?
Franchise dealerships have an ace up
their sleeve - recalls. Recalls are the
means to prying open opportunity and
getting vehicle owners back into your
dealership for a return visit. Let's start
with getting familiar with our target audiences:

to independent repair shops within the
first 6 to 12 months following expiration.
Consumers don't quite understand and
appreciate the "total cost of service"
and the subsequent impact on vehicle
valuation. So, while price beats quality,
"perceived value" shatters price. When
service advisors take the time to educate consumers, the emphasis on price
is tied to overall "perceived value" rather than a standalone deciding factor.

Out-of-Warranty Vehicle Owners
Consumers are Busier than Ever
Setting price aside, franchise dealerships are still the preferred point of
service (75% of consumers surveyed).
Consumers perceive the quality of service significantly better at a franchise
dealership - factory parts, certified
technicians, state-of-the art equipment
and facilities, factory support, on and
on. However, it's clear that, once a vehicle falls out of factory or extended
warranty, the cost of service at a franchised dealership doesn't align with the
perceived value. When a consumer has
to reach into their own wallet to cover
the cost of service, price wins out over
quality. Approximately 90% of those
out-of-warranty consumers will defect

A few years ago, a JD Power study revealed that 64% of people wait while
their car is being repaired - more than
most of us would have imagined. It
probably seems a bit unfair, but "wait
times" are not so much a factor at independent repair shops because it takes a
very brave consumer to sit in the filthy
waiting room of an independent repair
shop. As an industry, franchise dealerships have invested heavily in creating comfortable, amenity-filled waiting
rooms. Still, encouraging customers to
endure excessive wait times is backfiring. Obviously, not every service appointment mandates a loaner car. How-

PRICE - COMBINED
WITH TRANSPARENCY,
PROMPT SERVICE
AND ATTENTION,
PERCEIVED
QUALITY AND
GUARANTEED
WORKMANSHIP - IS HOW
YOU'LL BUILD A LOYAL
CUSTOMER BASE FOR
THE LONG HAUL.

17



Fixed Ops Magazine - 2020 Vol17 02

Table of Contents for the Digital Edition of Fixed Ops Magazine - 2020 Vol17 02

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