Thread: Stealerships
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asphaltgambler asphaltgambler is offline
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Join Date: Nov 2004
Location: Nokesville, Va.
Posts: 8,225
It's the business model at fault. Largely unchanged since post-Depression era. While there has been some 'evolving' the customer always takes the hit. Maintenance opportunities have all but evaporated as the consumers want more of an appliance. Hyundai took the lead in 1996 - first to offer 100k mileage coverage on what was at the time a sub- standard car. They lost a lot of money on the back end, but won a lot of customers over, selling waaay more units than before.

There is really very little COD work anymore on the service side, just about all warranty. So up-selling is essential not optional now. The other issue is because warranty work is the major source of service dollars there is a lot more administrative work to be done as well as maintaining high CSI - customer satisfaction index. There is literally a staff of people working the customers via direct contact to ensure that the CSI comes in @90%+.

CSI is the driving force on the backend for parts / new vehicle discounts, preferential treatment. So administrative costs have soared, the main reason that labor hours average in the $125 + range
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Last edited by asphaltgambler; 05-10-2021 at 05:09 AM..
Old 05-10-2021, 04:57 AM
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