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Sensational Reporting or a wake up call for Fixed Ops? NBC Investigates...

ryan.leslie

One of the good guys
Apr 20, 2009
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Ah... the least used channel on DealerRefresh. Coincidence?

I was hesitant to post this. I know it is going to ruffle some feathers. The internet era and that cliche buzzword concept of "transparency" is reaching beyond variable ops topics like pricing, holdback and doc fees and into Service Writer comp plans, multi-points and menu sales and absorption rate. Thanks Edmunds! ;)

I feel badly for the dealers in this expose that were snowed. The piece is clearly edited to perpetuate an "Evil Dealer" mentality because that is what sells, and like it or not, that perception is alive and well for most consumers. From a reputation management standpoint there is a lot at stake right now in Fixed Ops and it impacts the entire operation.

It also shouldn't surprise you that Today's follow up on Independent Repair shops was much more favorable.

Most here concentrate on variable ops only, but how do you defend against a consumer perception of "getting sold unnecessary work" in service that will carry over to your variable ops performance? What reforms are necessary in Fixed due to "transparency" and can they be achieved without compressing margins? Have you considered the impact on your total business if you don't reform your Fixed Ops Departments as vigorously as you reformed your Variable Ops?

Hulu - NBC TODAY Show: Are Car Dealers Charging for Unnecessary Car Repairs?
 
Manufacturers are under the gun to show that the maintenance is lower for their cars than the competition. Oil changes on my car are recommended at 7,000 miles. I don't know anyone that waits that long.

Some will recommend maintenance that is really not required. I don't think that it is limited to dealerships. Many independants are "parts changers". They replace parts until they fix the problem. This often is more expensive, more time consuming and a bigger inconvenience to the customer.
 
Had a discussion about the Today Show piece yesterday.

I find it absolutely fascinating and feel 200% more justified when I keep mentioning that in this age of digital proliferation, that old fashioned TALENT is more critical than ever.

Talent: the ability to effectively communicate. You know what overcomes this objection in the lanes?

Talent -- Communication -- Rapport (sound familiar to the "Sales" people?).

One-to-one communication between real people. Just can't beat it.