The profit margins in the service lane remain high and are every dealer's biggest asset. Yet to maintain the profits we have to be competitive with pricing. Noting that not everything has to be less expensive so long it is relevant, and the value is translated to the customer. Not everything that is cheaper is the *best* option - where more often than not if there are *excellent* reviews the customer will opt for the more expensive service.
Here are five ways to be competitive with pricing:
Best practice is to list the major services your service lane offers online. Posting the competitors pricing (using shops that are within reason). Where if your pricing is only a few dollars more - and the customer has previously serviced with you - then s/he will most likely return. And if asked, the pricing is supported with local pricing. Informing the customer that your techs are OEM certified, and training to work exclusively on your vehicle make.
For those who still have mobile apps - with geofencing - you can pick targeted locations such as big box retailers, which will push a notification to the customer's phones. This is invaluable when it comes to tire & brake sales. If the customer is headed to PEP Boys or Jiffy Lube and receives a coupon for tires cheaper than of what the big box guy is doing it might prompt them to visit the dealer. If this customer is in your assigned customer base - from the OEM - it could assist with the retention requirements.
Meet or Beat Competitors Price
This is mainly for oil changes. It does not hurt to have a coupon in your email blasts (to non-sold customers), which might urge the customer to look and see what your pricing is in relation to your competition. As I mentioned above, you might be a little bit more expensive, but if you are willing to match or beat their oil change offer it can lead to the dealer landing a new customer.
Building Banner (It really works)
If you a store with a repair shop in your backyard you can always consider placing a banner on the side of the service bay. Allowing the customers at the neighboring store to see your low oil change price. This has proven to be very effective with our one store. Where customers at the adjacent location have literally pulled out, and driven into our store. Servicing their vehicle with us. This has resulted in a few extra sales a month as well.
Rewards that Translate
Letting the customer know ahead of time what their rewards would be on that service is a great way to build value. Expressing that not only are we less expensive, BUT you will also earn up to $3 dollars back per service. Not to mention, if you are wanting to upsell a major service you are able to use their rewards dollars as an “additional” discount, which builds value with the customer.
How are you competitive with pricing? Do you use “Meet or Beat Your Competitor Pricing Tactics?”